Author Topic: College Student, Best loan provider?  (Read 366 times)

redwood_canyon

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College Student, Best loan provider?
« on: October 29, 2018, 11:16:40 PM »
I am a college student who needs to take out a loan and i am looking for the best loan provider. I will have to take out about $7,000 to finish up the next semester. I plan on holding a part time job next semester, and a full time job over the summer to help pay for college. On the side I will start my little stache which right now is my Schwab Account.  What loan options are there out there and what companies give the best benefits? I would like to pay my loans down as I go and really work to earn my education. The goal is to be debt free or nearly debt free when I graduate.

nereo

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Re: College Student, Best loan provider?
« Reply #1 on: October 30, 2018, 06:47:02 AM »
Have you filled out a FAFSA application/ (link)

FAFSA will tell you what federal aid you are eligibile for, and whether you can take out subsidized loans where the government pays the interest until 6 months after you graduate.

If you qualify for any federal grants (eg a Pell Grant) take those first.  Then the subsidized loan option might be best for you, since you plan on paying down your debt as you do to be debt free or nearly debt free when you graduate.  If you stick to that plan you will pay $0 in interest.


Car Jack

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Re: College Student, Best loan provider?
« Reply #2 on: October 30, 2018, 07:40:21 AM »
nereo hit it on the head.  If you're a junior or senior, you get $7500 (minus the convenient 1.04% origination fee) that'll cost somewhere near 6%.  The difference between subsidized and non-subsidized is only whether the government pays interest until 6 months after you graduate or if it accrues from day 1 and you get to pay it.

With a cosigner, there may be private loans that have lower rates.  Without a cosigner, I'll state that there simply are none.

Filling out FAFSA is the first step.  Without it, you get no government aid (loans, grants, work-study).

Bracken_Joy

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Re: College Student, Best loan provider?
« Reply #3 on: October 30, 2018, 07:43:03 AM »
Yep, FAFSA for sure. Just as a point of reference- I went back to school after my first BS for a BSN. My fed loan rates were in the 4-6% range. I had excellent and established credit (815ish) and had my dad cosign (also excellent credit), and my private loans were STILL 8-9% interest. This was in 2013-2015.