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No, they won't come tackle you in the streets. It's just that when Bob calls in for information on Julie's account (or Megan sounds remarkably like she's been smoking for 50 years even though she was born in '85), phone reps get angry. There's a definite sense of "wtf do you really think I'm this retarded???" Plus their calls DO get listened to, so they have to take those steps to avoid being called on it. It *is* a federal law violation, after all. I can tell you personally that it's really really annoying to know that you're not talking to the borrower, because there's nothing you can do about it even though you know the person's lying to you. So don't do it! 
Wiggy Marie fucked around with this message at 22:53 on Aug 27, 2008 |
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May 23, 2008 16:48
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I realized it was really dumb of me to do so after the fact. Trust me, I won't be doing it again thanks for putting my mind at ease though
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May 23, 2008 17:23
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If my boyfriend called Sallie Mae for me, even if his intentions were very good, I'd still get pissed off at him for getting into my financial business. Just my two cents.
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May 25, 2008 12:34
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I've got the old variable rate Stafford Loans that will reset from 7.22% to 4.21% starting July 1. Should I wait until July to try and consolidate, or since the new rate has already been established would lenders be aware of it and offer me that rate if I started looking now? Also, is there a minimum amount I need to owe to consolidate?
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May 28, 2008 19:27
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Well, I have another question. What are the chances of me, a 17 year old, getting a 2000 dollar loan from a bank with a mother with no collateral and somewhat lovely credit?
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May 28, 2008 21:30
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GamingHyena, you need to wait. They can't use the newer rates until after July 1st. Also, thank you for bringing that up! To anyone reading who currently has the variable interest rates, your rates will be going way down July 1st. YEY!!! Aturaten, I honestly could not tell you. The private loan industry is all over the place, there's no way to know anything for certain until you apply and get your answer. I'm sorry 
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May 28, 2008 22:36
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Im in my senior year of college and I might need to get loans. My total loan would be no more than 6K. If I do well on my MCAT on June 13 there is a good possibility I will be going to med school. If I do can I wait to repay that 6K till after med school or is the deferment only until 6 months after I graduate? Also is Bank of America an okay loaner or are they cockroaches?
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May 28, 2008 23:37
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If you're referring to a federal loan, it will be automatically deferred while you're in school at least half-time or more. Private loans all have different programs so you would need to ask them directly. I've honestly never heard anything about Bank of America being the right hand of God or the spawn of Satan. I guess that's a good thing. Right not pretty much nobody's offering benefits (boo), but try shopping around a bit just in case.
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May 29, 2008 02:42
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GamingHyena posted:I've got the old variable rate Stafford Loans that will reset from 7.22% to 4.21% starting July 1. Should I wait until July to try and consolidate, or since the new rate has already been established would lenders be aware of it and offer me that rate if I started looking now? Is it going to 4.21%? Where does one find out what the new rate is going to be? I was hoping for 3.5%.
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May 29, 2008 06:30
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Wiggy Marie, I apologize for being a jerk and not reading the whole thread (I suppose I can't be blamed) but I have a pressing question regarding my situation (I need to find a lender and a loan by ~June 10), which is as follows: I am planning to attend graduate school in Norway (U.S. citizen) beginning in August; despite there being no tuition, I still need to cover cost of living for at least the first academic year. I would like to take out a loan to finance a portion of this but my school is not listed under Title IV or FAFSA (I gather this is a dead-end). I also have ~$6,000 in loans waiting to be paid off from my undergrad education from Sallie Mae. The new loan is probably going to wind up being about $8000; I do not plan to make large quantities of money in the near future and would like to do some volunteer work immediately after receiving my degree. My guess is I want a loan that will permit very gradual re-payment. Can you give any general or specific advice on for what and specifically where I ought to be looking for a loan (at the moment I'm very unclear what I want here)? My impression is that I ought to avoid using Sallie Mae again at all costs (though I'm not entirely clear why Sallie Mae is Evil). Do you recommending consolidating my previous loans with a potential new loan? There is a possibility my parents may opt to pay off the previous loan... Thanks in advance, you are obviously very generous with your time! I am sure it is appreciated by all! Let me know if you need more info.
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May 29, 2008 18:27
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Kobayashi posted:Is it going to 4.21%? Where does one find out what the new rate is going to be? I was hoping for 3.5%. quote:For variable rate loans, the rates are set annually using the price of the 91-day Treasury bill on the last Monday of May, and become effective for the following year on July 1. For fiscal year 2007-2008 the 91-day Treasury bill auctioned on May 29, 2007 at 4.919% (rounded to 4.92%) are used for the calculation.[2] On May 27th, 2008 the 91-day Treasury bill was auctioned at an investment rate of 1.905%[3] . On July 1, 2008, the base rate for variable rate Stafford loans will be adjusted to 1.91%. Loans issued prior to July 1st, 1998 will be adjusted to a rate of 5.01%. Loans issued July 1st, 1998 thru June 30th, 2006 will be adjusted to a rate of 4.21%. http://en.wikipedia.org/wiki/Stafford_loan
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May 29, 2008 23:34
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Thank you GH! https://www.finaid.org would have the information somewhere on it, too. oldkentuckyshark, you're delving into the private loan sector, and as far as I've ever heard the only grace period you receive with those is a 6 month period after dropping less than half-time (which, by the way, is not across the board - you'd need to check and see if they even have a grace). If you plan on doing volunteer work for longer, you will still need to start paying on a private loan after those six loans. They do NOT have the deferments and forbearances that federal loans do (such a one for Americorps/Peace Corps). However, it is entirely possible that there is a program out that that mimics the federal deferments and forbearances as closely as possible. Unfortunately I've never heard of it, and have no idea where you might find it. All that I can really suggest is to shop around, using Google as your primary tool and contacting the companies you research to ask. A lot of companies *do* have income-sensitive repayment plans, so that may be an option for starting off with a lower payment. Always always ask if this is a plan offered by your company. Sallie Mae isn't necessarily evil so much as abusive of their customers. They have notoriously inconsistent customer service quality. But if you've never had a bad experience with them, I hope that keeps up and continues until your account is closed. If they have the private loan program you need, it may be easier to stay with them since you already have an account. But yeah, I still hate them.
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May 31, 2008 15:41
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hmmm, well, forget the income-related stuff for the moment. currently I'm having difficulty finding any international loans at all, regardless of affiliated APR. Sallie Mae claims to have them, but there seem to be complications in applying. I'll probably have to call them this week. Can you recommend any other lenders that you know offer international loans? thanks in advance.
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May 31, 2008 21:32
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Since I am under 18 and can't enter into a legal contract, how will I be able to sign for my loans even with a cosigner? Does it work differently with financial aid?
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Jun 1, 2008 01:02
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I will have to start paying of my student loans in July. They are all through Sallie Mae and are Signature student loans and they total (not including accrued interest) $97,823. I have 6 different loans some at different interest rates. I have looked into consolidating with non-federal lenders for a private consolidation but I can not afford any of the monthly payments that those companies offer. Will I be able to get a monthly payment of say $400 - $500? I only make about $800 - $1000 a month. If you need my loan amounts and what rates they are at I have that information.
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Jun 1, 2008 03:13
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oldkentuckyshark, I googled "international private loan" and got some results that might help you: http://www.google.com/search?q=international+private+loan&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a Do any of those look like what you need? Fatty Patty, the basic law in regards to student loans is that if the student is old enough to legally enter college within their state, they are old enough to sign for the legal contract needed for the student loans. So your young age won't be a factor when signing those Master Promissory Notes. Tricycle_Monkey, wow. http://www.finaid.org/calculators/ Here's a list of very useful calculators you can plug your numbers into. The only way I can see that you would be able to have a lower payment is to do a consolidation with a company that offers an income-sensitive plan or some kind of interest-only plan. But I certainly can't say if this will be enough to drop it into the range that you need. Private loans are their own animals and there's no guarantees either way. All that I can suggest is to keep looking, and when you ask what prices they can give you ask about income sensitive or interest-only payment plans and what THAT might get you. Also, start a website and beg for money! Try this site: http://www.cyberbeg.com/ Hey man, it couldn't hurt.
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Jun 1, 2008 13:56
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I have a few questions to ask. I will starting my freshman year at a local community college in the fall semester. My plan is to transfer to a state university after a year or two at the community college. I filled out the FAFSA earlier in the year (as independent), but seeing as I've been working full time for the past ~6 years or so the EFC was pretty high. I'm not eligible for any grants and the school apparently does not participate in any of the loan programs. Since I've never attended college, and been out of school so long, I was hoping to concentrate on school full time. I don't really have any savings available, so I would have look into the private loan aspect. If I go this route and work part time (or not at all), I'm assuming this would better my chances for financial aid when it comes time to fill out the FAFSA again, correct? Is there a problem with just borrowing a smaller amount from a private lender in hopes that I'll be eligible for other grants or loans in the future? Any advice would be greatly appreciated.
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Jun 18, 2008 17:43
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Your school had you fill out the FAFSA but doesn't participate in the federal program? That seems odd to me. What school is it? I would like to take a gander at them before I answer your question.
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Jun 19, 2008 01:15
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They didn't have me fill it out, I just did it thinking that if I wasn't eligible for any grants I'd at least be able to get a Federal loan. The school is Baton Rouge Community College. The following is from the FAQ on their financial aid section of their website:quote:Must I be enrolled full-time to receive financial aid?
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Jun 19, 2008 01:46
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Gotcha. Well my first reaction is "is this the only community college available to you?" Taking out a private loan is very very risky business, so trying to find a school that does participate in the federal loan program wouldn't hurt. Assuming this is your only option/where you really want to go, my suggestion is what you said - borrow as little as you need on an annual basis. Theoretically yes, working part-time would potentially make you eligible for additional grants/etc. in the future, but don't count on it (as in, anticipate having to take out private loans both years - so shop smart for your private loan program). That way if something does come up, you're covered anyway.
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Jun 19, 2008 12:40
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Can anyone help me decide between these two lenders for stafford loans? Assuming roughly a 13,000 total loan, hopefully 7500 maxed out subsidized? The 0% and 1% respectively in each column is the origination and default fees. This is for graduate school.
Azrial fucked around with this message at 08:30 on Jun 20, 2008 |
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Jun 19, 2008 21:37
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Just glancing at it the 2nd one looks better. Zero payments the last 6 months is early forgiveness, which is the same as the first but could save you more money. Plus you get a total of .75% off if you use autodraft, which isn't bad for how the market is right now. Of course, my other recommendation is call both and speak with the reps. You want to know what kind of customer service you'll be receiving, too.
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Jun 20, 2008 12:22
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I'm sorry if you've already answered some or all of this in some way before, but 18 pages is a lot to read about other peoples financial questions. So I'm going into my senior year and the parents are cutting the financial cord. I am going to need about $25000 for the year (including summer classes I am currently enrolled in). Because my parents make enough and I am still a dependent (a dependent receiving no financial aid) I know I will not get subsidized Stafford loans. I was curious if there is any advantage between splitting my $25000 between unsubsidized Staffords (which means waiting until at least mid-July for the U to process my stuff and maybe not even allow me that much) and private loans, or just going full bore into $25000 in private loans, since both will be accruing interest since day 1. My real question is, I guess, if I can get a low enough interest rate on a private loan (parents will cosign) is there any difference between that and an unsubsidized Stafford loan?
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Jun 23, 2008 03:10
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I've got cancer, so I'll be taking some time off (potentially a year, more likely a semester). Two things I was wondering: 1. Will they notice I didn't do my FAFSA and make me start paying up? After how long? 2. How can I use a life-threatening disease to my advantage in the process? My loans are subsidized and unsubsidized Stafford from U.S. Bank.
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Jun 23, 2008 03:30
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It's almost July and the interest rate for consolidating stafford loans made before 6/1/2008 seems to be projected at 4.25% (as of last week). Unfortunately, lenders like Bank of America, Wells Fargo, Chase, and Citibank have stopped their federal loan consolidation programs. This leaves the federal government as the last remaining consolidation option. Wiggy Marie, besides the federal government is there anyone else who might offer interest rate incentives to go with them?
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Jun 24, 2008 02:44
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DrKennethNoisewater posted:My real question is, I guess, if I can get a low enough interest rate on a private loan (parents will cosign) is there any difference between that and an unsubsidized Stafford loan? Max out what you can with stafford loans because the interest rate is fixed at 6.8%, while private loans are variable. Eventually the feds will raise the prime rate to the point where your private loans will be over 7%. quote:Can anyone help me decide between these two lenders for stafford loans? The second one is better due to the automatic .5% interest reduction upon repayment. The balance forgiveness thing is pretty equal if you take 15 years to pay the loan off.
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Jun 24, 2008 03:28
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Hey Wiggy, Sorry about not getting back to you with my loan calculator... I left the country, traveled for a long time, finished school, got a job, and managed to misplace the calculator in the meantime. I'll see if I can dig it up, but looking around for consolidation options makes me wonder if it's even that useful of a spreadsheet anymore. A bunch of places that used to offer consolidation seem to have dried up in my absence. What the hell happened, and do you know of a couple good places to compare in the "new" market?
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Jun 24, 2008 14:14
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DrKennethNoisewater, there is a HUGE difference between an unsub Stafford and a private loan. In fact, just about everything is different - private loans are based on a credit agreement and are not guaranteed by the federal government, so they represent the risky side of the business. They are not evil incarnate (most times), but they ARE a gamble. Most of the rates are variable and you will often end up with a higher rate than when you started (something that can't happen with federal loans anymore since they're now fixed). If you want more detailed info on the federal loans, please check my OP. If you have any questions/don't understand parts of it I will be happy to explain further! Groda, I am so sorry. I hope you have the completely treatable sort, and sending well wishes your way. In terms of federal loans, they will indeed notice if you are not enrolled. Sometimes if you are on a leave of absence from the school they can report this to the lender who will keep you on the ISD. This is not a guarantee but I would suggest checking on it. Without that, you will have 6 months before hitting repayment, at which time you may use your deferment/forbearance time to continue for up to 3 years, assuming you have no or a very low income. Unfortunately there's not a deferment or forbearance specifically for a temporary disability anymore enigma74, honestly, I have no clue. I do not know of a single lender offering incentives that are worth a first glance right now This new policy has really mucked it up for the FFELP program. It's pretty much Direct or nothing for benefits. But of course you're welcome to shop around. I just know that nearly none of the lenders my company services offers consolidation at ALL right now, much less incentives.Realjones, I heart you for helping. AsphaltBelyflop, thank you for getting back at all! It sounds like you've had some exciting times. Me, I've been...boring, quite frankly. As for what happened, well...it's been rough. There was a bill finalized last October which busted nearly all of the back-end profits of lenders AND guarantors (which is where a lot of the loans came from, hello Congress). This drove many lenders to cut or cancel consolidation entirely, as any lender consolidating loans was literally earning a negative income. Then the mortgage/credit crisis happened, and nobody's buying the bonds anymore to fund the loans. Even for student loans, which are 95% guaranteed by Uncle Sam himself. Yeah, nobody cares. So lenders dropped out entirely because it became pure loss. And that trend continued until recently when Congress passed a bill that is literally for the sole purpose of saving the FFELP program from a certain death. On the lender side, it's been very interesting to watch FFELP lenders like Sallie Mae throw their weight around. For once, Sallie did something I can agree with. Wiggy Marie fucked around with this message at 23:18 on Jun 26, 2008 |
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Jun 26, 2008 02:43
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Here is an update. I called sallie mae, and NO ONE is doing loan consolidations due to the housing market crashing. So, the lowest I could get my monthly payments down to is $864. I applied for a forbearance for a 6 month period in order to try and find a second job in order to have any chance in making these payments. Since my loans are private, I am not eligible for any of the nice repayment plans such as the income sensitive one. Also, bankruptcy will not fix this, so I will be stuck spenind 50% of my gross monthly income on my student loan payments.
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Jun 26, 2008 03:47
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Tricycle_Monkey posted:Here is an update. I called sallie mae, and NO ONE is doing loan consolidations due to the housing market crashing. So, the lowest I could get my monthly payments down to is $864. I applied for a forbearance for a 6 month period in order to try and find a second job in order to have any chance in making these payments. Since my loans are private, I am not eligible for any of the nice repayment plans such as the income sensitive one. Also, bankruptcy will not fix this, so I will be stuck spenind 50% of my gross monthly income on my student loan payments. Both Wells Fargo and Citibank still offer private loan consolidation. Of course Sallie Mae didn't tell you this because they want you to keep paying interest to them, not to someone else.
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Jun 26, 2008 05:42
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Bullshit. This sucks. Will any of this be fixed in the near future? Like... immediately, or am I just screwed... the bastard stepchild of a system that is ignorant to the effects of its own actions? If I remember correctly, you can "re-consolidate" loans so long as you have two or more. Would it be beneficial to keep one loan out of any consolidation I attempt so that I can re-consolidate when/if any of this gets fixed? Isn't it bad to consolidate after repayment has started... are the "penalties" associated with consolidating after repayment prohibitive in the sense that they will be much less beneficial than the alternative? No luck on the calculator so far... I have to have it somewhere though...
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Jun 26, 2008 14:06
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Glad to see this thread is still alive and kicking! It helped me clarify a few things a while back, but now I actually have a question: How do loans for post-bacc certificates work? Is the key the fact that I would not be getting a second BA, but that I would merely be getting a certificate in the major I want to pursue? I discovered that I had a different interest which I would love to pursue in the last year of my BA, so I think that the post-bacc would be a good option since it is in a completely different field and grad programs in this area don't focus on what I want to do. I called the prospective school's financial aid office, and whoever I spoke with didn't really get that I wasn't going for a second BA and said that I would get nothing, from anyone, federal or otherwise. I am still waiting back on an e-mail from another office. Some of the info I have found online, however, states that post-bacc students are classified as 5th year/other undergrads for these purposes. So this has made me confused and I was wondering if anyone knows about this type of situation. Thanks! Edit: I should add that my loans from my BA are taken care of, so accumulating insane amounts of debt on top of that is not an issue. Pricklypine fucked around with this message at 23:45 on Jun 26, 2008 |
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Jun 26, 2008 23:42
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Wiggy Marie posted:Groda, I am so sorry. I hope you have the completely treatable sort, and sending well wishes your way. Being lymphoma, unless the diagnosis changes, it's just going to be a massive pain in the neck (  ) for my studies.I didn't have much luck with Google; what is the "ISD"? Also, who do I ask to find out how low an income is required for the "deferment/forbearance"? The Dept. of Education? U.S. Bank?
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Jun 27, 2008 01:47
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AsphaltBelyflop, the "penalties" associated with reconsolidation is that any benefits you might have accrued go away. So for example, if you were on a program what gave you an interest rate reduction about 3 years of payments, you would start from square one. But it doesn't hurt you otherwise (such as lowering your credit score). As for whether it will be fixed, there is NO telling at this point. Frankly, if the next president is Obama, likely the loan program will just continue sinking, because he's made it very clear that like Hillary, he thinks everything should be switched to Direct. The policies that were initially enacted were very blatant attempts to kill the program. It's a very odd position indeed when I realize that if I support a particular presidential candidate it also means I'm likely giving up my job. Pricklypine, financial aid offices can be retarded. Really that's what it boils down to. Personally I'm not familiar with how it would work for you - unfortunately you need to keep fighting that out with the school. I thowwy.Groda, arg, I'm sorry! I forgot to not abbreviate there and I didn't even realize it. The ISD is the In School Deferment. The calculations for determining if a student is eligible for an EHD (Economic Hardship Deferment) have changed significantly - it's now based on number within the household as well as gross monthly income. However, the EHF (Economic Hardship Forbearance) is still the same. General rule of thumb is that if your monthly payments would be 20% or more of your gross monthly, then you will qualify. Barring either of those there's always the temporary hardship forbearance available, which you don't need to qualify for and should have around 3 years available.
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Jun 27, 2008 12:40
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So, I have a graduate school loans question. I've been offered $8,500 in subsidized Stafford loans, $12,000 in unsubsidized Stafford loans, and $2,208 in Graduate PLUS loans. I've obviously already accepted all of the subsidized loans, but I'm uncertain as to how much to take in unsubsidized. I've roughly estimated that I'll need about $6,500 per semester in expenses, but I was wondering if I should pad that substantially just in case. Tying into that question, if I end up taking more in loans than I need, what's the procedure for paying back the principal early? Am I charged a fee? Can it be done relatively painlessly?
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Jun 27, 2008 15:03
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I have 40K in loans that are a combination of sub/unsub. 20K is mine and 20K is my husband's, but they are all consolidated together into one loan. Is there any way around the inability to re-consolidate elsewhere? We are stuck with an 8% rate. Thanks!
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Jun 27, 2008 18:50
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Sheeesh, after reading this thread my burden of debt feels like nothing. I feel sorry for some of you guys However, I do need to borrow about $3,500 for Fall semester so that I may graduate. I realize this is a pretty short window from right now until then so what directions seem to work the fastest? Is taking loans out even feasible in my own name at my age? Some poo poo to help maybe: Only 22 so still a Dependant Parents refuse to divulge any sort of financial information because they are  Great credit and rental history Schools Financial Aid office is loving incompetent In Texas Captain Beans fucked around with this message at 23:58 on Jun 27, 2008 |
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Jun 27, 2008 23:51
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Azars, take out everything you can and just return what you end up not needing. There is NO prepayment penalty. Also, if you return unneeded funds within 90 (I think now it's a longer period) days of receiving it you're not held accountable for interest, too. If you send it back after that period, they'll apply a portion of the payment to interest and the rest straight to principle. But there's still no penalty. You will NOT be kicked into repayment for making a payment. DontBurnthePig, I would suggest contacting Direct and asking them if there's anything they can do. Spousal consolidations are pretty challenging (nearly impossible) to work with, and only Direct would be able to do anything at all, IF anything can be done. Captain Beans, yes, but you can't take out federal loans without filling out the FAFSA, which requires financial data. Tell your parents that they're dooming you to higher interest rates and risky ventures. If that doesn't work, it sounds like you'll be ok taking out private loans, you'll just have a higher interest rate...among other things. But private loans aren't completely hopeless or evil, just more expensive. You just have to be very very careful about how much you take out.
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Jun 29, 2008 15:46
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I've been accepted in a one year certification program - lot of hours per week, and since I've been out of school for a few years, I really need the focus and won't be able to work much. I'm going to need both fed Stafford financing offered, as well as some private loans to cover the remainder of expenses. The recommended lenders list was pretty basic: Sallie Mae (of course), Citi Bank, and Wachovia. I've heard good things about Wachovia, and some not-so-positive things about the other two. I didn't have any private loans for undergrad, but my Stafford loans, which I am currently repaying, are through Sallie Mae. Should I let that affect my decision on which lender to choose? I currently have around 9,000 left in repayment on the Stafford loans through Sallie Mae. Oh, and the signed federal tax form the school requests, that would just be a copy of my 1040A from this year, correct? Thanks again. 2 Slice Toaster fucked around with this message at 06:06 on Jun 30, 2008 |
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Jun 30, 2008 04:59
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While I'm in a crap position, I don't envy yours. Sorry.
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Jun 30, 2008 12:56
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