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Author Topic: Best Stafford Loan Deals.  (Read 2863 times)

Forget Money, Read a Book

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Re: Best Stafford Loan Deals.
« Reply #20 on: July 11, 2007, 06:42:12 PM »
I don't know too too much about which stafford loans are the best but would argue take the one with the lowest up front interest for the following reason:

If you have a combination of loans you'd like to consolidate after graduation (basically lower your monthly payments by stretching them out over a longer period of time) your new consolidated interest rate will be an average of all of your interest rates and then rounded to the nearest 1/8 percent OR no higher 8.25%, whichever is lower).  Also, those benefits you receive for X number of consecutive online payments, direct debit etc., may be lost when you consolidate.  However, if you know you won't be interested in consolidating, disregard....HTH
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myconfessions

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Re: Best Stafford Loan Deals.
« Reply #21 on: July 11, 2007, 06:59:25 PM »
OK...I think I fixed it. According to what I read at the government's financial aid site, all unsubsidized stafford loans are capitalized only at repayment (regardless of lender). Please correct me if I'm wrong. Given this, the total payments at $1000/$2000 monthly payments are for each lender:


Lender             $1000/mo   $2000/mo
Access             $89,627    $80,323
Citibank           $82,477    $67,622
Edamerica          $86,867    $78,415
Academic Financing $85,054    $77,999
THE                $88,365    $79,699


(8500 sub, 12000 unsub per year for 3 years, interest capitalized at repayment, starting payment 6 months after graduation, making every payment on time, getting all bonuses offered, 6.8% fixed, etc)

Could you please cite the source for these numbers?  What is the website you are using to do these calculations?  Is this on an 8-year term?
GW Law Class of 2010

myconfessions

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Re: Best Stafford Loan Deals.
« Reply #22 on: July 12, 2007, 06:54:49 PM »
http://www.efsi.net/

no origination or default fees, 2% rate reduction at repayment. Too good to be true?

Only .25% starts at repayment.  1.75% after "ACH Payments" which I believe has something to do with auto-debit.  They fail to specify when that kicks in.  Also, if you ever miss a payment, you lose all incentives.  Ouch.  Also, I tried to call and I got a message machine.  Kind of shady.
GW Law Class of 2010

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Re: Best Stafford Loan Deals.
« Reply #23 on: July 12, 2007, 07:02:34 PM »
ACH = Automated Clearing House

myconfessions

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Re: Best Stafford Loan Deals.
« Reply #24 on: July 12, 2007, 07:57:47 PM »
Wait, so there is an origination fee? 
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myconfessions

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Re: Best Stafford Loan Deals.
« Reply #25 on: July 13, 2007, 11:25:18 AM »
Wait, so there is an origination fee? 

I think EFSI only does loans for some schools (and does not charge those students an origination fee). If you go to another school, AFC will give you a loan with the same discounts, but you have to pay the origination fee.

I see.  Furthermore, I would be wary of some "no-name" companies offering too-good-to-be-true inentives.  You need to do business with these companies for many, many years.  You want to be sure that the company still exists and honors those incentives in say, thirty years.  As EFSI does reserve the right to modify incentives in the future, it's plausible that they could sell out to a larger organization in ten years and leave the incentives to the new company.  On the other hand Access Group has a long history of not only business, but also prompt service, great customer support, and they work well with most schools in the US.  There's nothing like showing up to pick up your check and hearing that your school had administrative issues with your lender, and now your payment is delayed. 

Just a thought.
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myconfessions

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Re: Best Stafford Loan Deals.
« Reply #26 on: July 13, 2007, 02:36:48 PM »
OK, I'm going with Citibank. If you get all of the bonuses, they end up being the cheapest (at least in the $700-1000 monthly payment range) and they won't be out of business in 15 years. I know most people don't get all of the bonuses, but I'm real anal about that stuff and have ways to make sure I don't miss a payment. If you aren't so sure about making every single payment, I'd recommend THE. Good luck, all.

Well, no one can accuse you of not doing your homework!  I am interested to hear how they treat you, as I've heard they aren't the best in customer service.  However, that shouldn't stop you from getting their sweet incentives.  I assume that if you set up the auto withdrawals you won't really have to worry about missing a payment.  Be cautious if you ever change your bank/checking account.  I've heard a lot of people's payments are delayed because of such an action.  Thank you for all the research you've shared!
GW Law Class of 2010