[Scotttheking]

I'm looking into student loans, and I was wondering what the best ones are. I need $50k - $70k over the next 2 years. All loans will be private.
Who do you all recommend for student loans?

Also, I've heard that loan interest is deductible after you graduate, can someone elaborate on that for me?

Thanks,

Scott

[E's Lil Theorem]

Originally posted by Scotttheking:
I'm looking into student loans, and I was wondering what the best ones are. I need $50k - $70k over the next 2 years. All loans will be private.
Who do you all recommend for student loans?

Also, I've heard that loan interest is deductible after you graduate, can someone elaborate on that for me?

Thanks,

Scott

Not sure which private organizations have the best loans, but as far as the interest being deductible, you heard it right. Basically, once you start paying your loans back, a portion of each payment you make will be interest. At the end of the year, the organization that lends you the money will send you a 1098-E (student loan interest paid). That document will contain the total amount of interest you paid during that year, all of which is deductible. Hope that explains it well enough.

[Kilbey]

Originally posted by E's Lil Theorem:
Not sure which private organizations have the best loans, but as far as the interest being deductible, you heard it right. Basically, once you start paying your loans back, a portion of each payment you make will be interest. At the end of the year, the organization that lends you the money will send you a 1098-E (student loan interest paid). That document will contain the total amount of interest you paid during that year, all of which is deductible. Hope that explains it well enough.

But only if you make under a certain amount of money for the year. Then it is not deductible.

[anthonyvthc]

I don't know what you are planning on doing with your degree, but if you go into teaching, some loans offer partial cancelation (as in you don't have to pay back a certain portion of the loan, ever).

[nredman]

Originally posted by anthonyvthc:
I don't know what you are planning on doing with your degree, but if you go into teaching, some loans offer partial cancelation (as in you don't have to pay back a certain portion of the loan, ever).

really? do you have any more info on this?

my wife is going to school to be a teacher. she hasn't taken out any money yet and only has 1 1/2 to go - she works part time and uses all her money for school while i pay for everything else.

[SimeyTheLimey]

Originally posted by Scotttheking:
I'm looking into student loans, and I was wondering what the best ones are. I need $50k - $70k over the next 2 years. All loans will be private.

That's a lot of private loans. Why can't you get federal loans?

Anyway, you should be talking to your financial aid office, not an internet board.

[Randman]

A good week at the blackjack tables would pay for it.

But Simey's correct. You should look into seeing what assistance you can get federally, then work your way down the food chain. If not, you could join the Army and do school on a GI Bill.

[buffalolee]

Get federal loans, it is the cheapest way to do it.

[Apple Pro Underwear]

This board has it right:

� Visit your school's financial aid dept. You may qualify for some grants. (federal or school related)
� Federal Loans have the lowest interest rates, see if you are eligible for any and work your way down from here
� Student Loan interest is deductible. I received my statement and had it deducted by my accountant. I also used the Hope credit for education in my tax filing.

[AppleOptionFour]

Well you can't get federal money if your parents make too much (but still can't pay for school.)

Heres the process:

1. Fill out a FASFA (http://www.fafsa.ed.gov/) Make sure your school is in the information release section. This will determine if you get federal money, if not then you need this to show the banks you didn't get federal money.

3. Make sure your school's financial aid office gets your FAFSA Report (the SAR is what they call it, I think.)

4. Your school will then issue an electronic Financial Aid Notice (eFAN) which says how much tuition will cost and such. This is what you send to private lenders. Once they have it they will begin the process of issuing a Stafford Loan.

5. Select which bank you would like to use and they will send you a promissory note. Once signed, the bank sends your money to your school.

6. If there is any left over loan money after tuition, you get it for "expenses."

http://som.ucdavis.edu/ea/fa/apply/procedures/

[anthonyvthc]

Originally posted by nredman:
really? do you have any more info on this?

my wife is going to school to be a teacher. she hasn't taken out any money yet and only has 1 1/2 to go - she works part time and uses all her money for school while i pay for everything else.

Sorry, all my student loan stuff is back at my parents. I don't have to worry about it for another year and a half. However, at my exit counseling at my undergrad school they talked about this deal. I honestly can't remember if it was through the federal loans or the private ones. I would just give a call to her financial aid department at school and ask if they know anything about this.

Sorry I couldn't be of any more help.

[E's Lil Theorem]

Originally posted by Kilbey:
But only if you make under a certain amount of money for the year. Then it is not deductible.

Si, se�or, you're right; I forgot to include that bit.

[Scotttheking]

Damn, complicated.
I just want $70k that I can then spend on my school expenses.

So I have to get rejected by the FAFSA before I can apply for a private student loan? I'm looking at an interest rate of 5.5% or so, which is acceptable to me.
FYI, $70k will be for my last 2 years of undergrad.

[E's Lil Theorem]

Originally posted by Scotttheking:
..

So I have to get rejected by the FAFSA before I can apply for a private student loan? ...

Well, the cool (easy is more like it) part about the FAFSA process is that even if you don't qualify for the federal grants/loans, they'll recommend private lenders to you. After that you can go with one of those recommendations or search for one of your own. The rates you'll get with those recommendations will not necessarily be the best, but it's just much easier to go through them.

[mitchell_pgh]

Originally posted by Scotttheking:
Damn, complicated.
I just want $70k that I can then spend on my school expenses.

So I have to get rejected by the FAFSA before I can apply for a private student loan? I'm looking at an interest rate of 5.5% or so, which is acceptable to me.
FYI, $70k will be for my last 2 years of undergrad.

5.5% is high.

I've got mine locked in at 2.2%.

Can't your parent's hook you up?
AGAIN, call your college, they will hook you up

[Scotttheking]

Originally posted by mitchell_pgh:
5.5% is high.

I've got mine locked in at 2.2%.

Can't your parent's hook you up?
AGAIN, call your college, they will hook you up

Hmm, 2.2% would be great. I'll look into it next week. Thx.

I'm paying for my own school.

[SimeyTheLimey]

Originally posted by Scotttheking:
Damn, complicated.
I just want $70k that I can then spend on my school expenses.

So I have to get rejected by the FAFSA before I can apply for a private student loan? I'm looking at an interest rate of 5.5% or so, which is acceptable to me.
FYI, $70k will be for my last 2 years of undergrad.

Wow! $70K for two years as an undergrad?

You need to max out on all the financial aid programs you can get before you start talking to private lenders. See if you qualify for grants or work study, get a regular part time job, and work summers.

Then if you have to start getting loans, begin with federal ones. If you get a commercial loan you will pay a higher rate of interest and that interest will begin accruing the day they cut you the check. Stafford loans come in two flavors, subsidized and unsubsidized. With the subsidized Staffords interest does not accrue on your loan while you are in school. That's zero percent! The unsubsidized Staffords (which are smaller) do accrue interest, but the rate will still be less than commercial loans.

None of this is complicated, just talk to your financial aid office and fill out the forms by the deadlines (which are probably coming up soon -- check to see). If you have the smarts to graduate college, then you easily have them to fill out some pieces of paper.

But do try to keep that debt down a bit. $70K is definitely on the high side for undergrad. Don't forget you have to pay it back. Scrimp now, play later.

[mitchell_pgh]

How to get a 200K degree for MUCH less.

1: To to a cheap school for 2.5 years, then transfer to an expensive school.

[Scotttheking]

Originally posted by SimeyTheLimey:
Wow! $70K for two years as an undergrad?

You need to max out on all the financial aid programs you can get before you start talking to private lenders. See if you qualify for grants or work study, get a regular part time job, and work summers.

Then if you have to start getting loans, begin with federal ones. If you get a commercial loan you will pay a higher rate of interest and that interest will begin accruing the day they cut you the check. Stafford loans come in two flavors, subsidized and unsubsidized. With the subsidized Staffords interest does not accrue on your loan while you are in school. That's zero percent! The unsubsidized Staffords (which are smaller) do accrue interest, but the rate will still be less than commercial loans.

None of this is complicated, just talk to your financial aid office and fill out the forms by the deadlines (which are probably coming up soon -- check to see). If you have the smarts to graduate college, then you easily have them to fill out some pieces of paper.

But do try to keep that debt down a bit. $70K is definitely on the high side for undergrad. Don't forget you have to pay it back. Scrimp now, play later.

I do not qualify for need based financial aid, at all. I got laughed at the one time I applied.
I think the reason I'm looking at only commercial loans is that the stafford loans give too little, and I don't want to have to track a bunch of loans.

I'm not worried about debt, I have a decent plan to pay it back, but as long as the interest is deductible I'll probably keep the loan around unless I have a good reason to pay it off.

Being an out of state student at an expensive school that's raising tuition by about 7% per year isn't fun, especially when I'm just north of DC and housing costs are brutal.

Originally posted by mitchell_pgh:
How to get a 200K degree for MUCH less.

1: To to a cheap school for 2.5 years, then transfer to an expensive school.

So you mean the 2 years I spent at community college, and how I'm now spending 3 at UMD to finish? My major requires me to take courses in sequential order.

[SimeyTheLimey]

Originally posted by Scotttheking:
I do not qualify for need based financial aid, at all. I got laughed at the one time I applied.
I think the reason I'm looking at only commercial loans is that the stafford loans give too little, and I don't want to have to track a bunch of loans.

I'm not worried about debt, I have a decent plan to pay it back, but as long as the interest is deductible I'll probably keep the loan around unless I have a good reason to pay it off.

Being an out of state student at an expensive school that's raising tuition by about 7% per year isn't fun, especially when I'm just north of DC and housing costs are brutal.



So you mean the 2 years I spent at community college, and how I'm now spending 3 at UMD to finish? My major requires me to take courses in sequential order.

You seem a little gung ho here you rack up unnecessary debt. It's your decision, and your life, but we've been there, and it might not be a bad idea to listen to us. Staffords are pretty much not need based financial aid. They are not Pell grants, and they are not Perkins loans. I doubt very much you can't qualify. It certainly won't hurt you to ask your financial aid office. But it will hurt you not to ask.

I don't understand wanting to rack up 5.5% interest in school when you could be paying zero. That just isn't sensible. Don't forget deductibility doesn't mean you pay zero. The phase out for that deductibility also isn't that high. A DC middle class salary will certainly phase you out. I'm still a student in school, and I am already phased out of interest deductibility AND hope scholarship eligibility because of a middling grade federal job. If you think your degree will pay you so little back that you will still qualify for those benefits, then I question how realisitic your plans are for paying your debt. Remember, you cannot discharge college debt in bankruptcy. You HAVE to pay it back.

Racking up $70K to go to College Park for two years is also just not a sensible plan. You have already done a smart thing by going to community college, so why blow it now? I also spent two years in a community college (NOVA in Annandale), and then I transferred to Georgetown. Even going to a notoriously expensive private school, I still only came out $20K in debt. $70K is the kind of debt it would be reasonable to have after graduate school. It's very high for a mere undegraduate degree, let alone from a relatively inexpensive state school like the University of Maryland (and by the way, I used to live on Riggs Rd. and University Blvd, I know about the cost of living in College Park).

There are ways to keep that debt down that require very little effort and which will pay off hugely in the future. But that is up to you. You asked for advice, and having been through the process, we are giving it to you. If you choose not to listen that is up to you.

[rozwado1]

I can get you $70K right now for 20%. No questions.

[Scotttheking]

Originally posted by SimeyTheLimey:
You seem a little gung ho here you rack up unnecessary debt. It's your decision, and your life, but we've been there, and it might not be a bad idea to listen to us. Staffords are pretty much not need based financial aid. They are not Pell grants, and they are not Perkins loans. I doubt very much you can't qualify. It certainly won't hurt you to ask your financial aid office. But it will hurt you not to ask.

I'll fill out the application as soon as I can get some time, assuming they don't require parent information. If they do, I'm screwed, because it is unlikely that I can get it from my dad.
I have no interest in unnecesary debt.

I don't understand wanting to rack up 5.5% interest in school when you could be paying zero. That just isn't sensible. Don't forget deductibility doesn't mean you pay zero. The phase out for that deductibility also isn't that high. A DC middle class salary will certainly phase you out. I'm still a student in school, and I am already phased out of interest deductibility AND hope scholarship eligibility because of a middling grade federal job. If you think your degree will pay you so little back that you will still qualify for those benefits, then I question how realisitic your plans are for paying your debt. Remember, you cannot discharge college debt in bankruptcy. You HAVE to pay it back.

I'll take 0 if I can get it, I just don't want to waste much time for something that's not likely to happen.

Racking up $70K to go to College Park for two years is also just not a sensible plan. You have already done a smart thing by going to community college, so why blow it now? I also spent two years in a community college (NOVA in Annandale), and then I transferred to Georgetown. Even going to a notoriously expensive private school, I still only came out $20K in debt. $70K is the kind of debt it would be reasonable to have after graduate school. It's very high for a mere undegraduate degree, let alone from a relatively inexpensive state school like the University of Maryland (and by the way, I used to live on Riggs Rd. and University Blvd, I know about the cost of living in College Park).

Tuition is $18k per year, and going up by 7% next year. Housing and utilities comes out to another ~$750 per month, and I need to eat, which is at least $200 per month.
$70k is the cost for 2 years. I want a loan for that amount, but it doesn't have to be a loan. I just would like $70k that isn't coming from me or my family. My mom will cosign for a loan because she knows I will pay it back and not endanger her credit.

There are ways to keep that debt down that require very little effort and which will pay off hugely in the future. But that is up to you. You asked for advice, and having been through the process, we are giving it to you. If you choose not to listen that is up to you.

Noted. Can I get the FAFSA filled out fully without having my dad's info? I can probably find it pretty easily, but I'm swamped with work (20 credits is fun!).

--Scott

[Athens]

!!!70K!!! THATS INSANE that works out to be 86k CDN

[DeathToWindows]

Originally posted by SimeyTheLimey:
Wow! $70K for two years as an undergrad?

Boston University: $42000+ per year (31k tuition and 11k room and board)

Tuition remission baby!

[Athens]

Originally posted by DeathToWindows:
Boston University: $42000+ per year (31k tuition and 11k room and board)

Tuition remission baby!

http://www.law.ubc.ca/prospective/tuition.html

Sample of UBC cost which is one of the more expensive Universities and in the same class as Yale.

30 000 Cdn is the average for the more expensive courses. And we bitch about how expensive that is

[Scotttheking]

Ok, the FAFSA is worthless.
They won't let me fill it out without my parents' info, which I don't have and can't get.
Even though I'm independent, they still consider me a dependent, and thus I can't fill it out.

[InterfaceGuy]

Originally posted by Scotttheking:
Ok, the FAFSA is worthless.
They won't let me fill it out without my parents' info, which I don't have and can't get.
Even though I'm independent, they still consider me a dependent, and thus I can't fill it out.

To be considered an independent on the FAFSA, you have to be either at least 23 years old or married.

[Scotttheking]

Originally posted by InterfaceGuy:
To be considered an independent on the FAFSA, you have to be either at least 23 years old or married.

Which doesn't help me.
Why can't they get the rules straight?
To be considered independent by the IRS, neither parent can list me as a dependent.
But, the FAFSA doesn't agree.

ONE DEFINITION PEOPLE.

So, now that the FAFSA is as worthless as always, what are some good private loan sources?

[AppleOptionFour]

Originally posted by Scotttheking:
So, now that the FAFSA is as worthless as always, what are some good private loan sources?

Just file yourself as a dependent and take the Stafford loans. They are private and federally backed.

To get the low interest rate I think you need to complete the FASFA.

[Scotttheking]

Originally posted by AppleOptionFour:
Just file yourself as a dependent and take the Stafford loans. They are private and federally backed.

To get the low interest rate I think you need to complete the FASFA.

It requires my parents' financial info. I don't know my parents' financial info. Therefor, I can't fill it out.

[SimeyTheLimey]

Originally posted by Scotttheking:
Ok, the FAFSA is worthless.
They won't let me fill it out without my parents' info, which I don't have and can't get.
Even though I'm independent, they still consider me a dependent, and thus I can't fill it out.

How many times do we have to tell you to speak to your financial aid office? They deal with these issues every day. You are not the first person to have them!!

[anthonyvthc]

Originally posted by Scotttheking:
It requires my parents' financial info. I don't know my parents' financial info. Therefor, I can't fill it out.

Hey, I don't wanna pry or anything, but what's the situation you got with your parents? I had a particular situation when I filled out my FAFSA that actually saved me a ton of money. If one of your parents is completely out of your life, there's a good chance you don't have to list them. Again, as others have said, talk to the fin. aid office.