starting in the summer, I am going to need student loans to help pay the remainning 1-2 years of school. Any recomendations to look at and any tips on chosing one? Plus, how screwed am I?
Where do you live? Are there grants available instead of loans? You should strat looking into and applying for grants asap.
Start here you can get the best rates if you get the money from the government http://www.fafsa.ed.gov/ All you do is fill in this form and the school you apply to will pull this form and they will give you the money minus the cost of classes.. Plus you dont have to pay anything while you are in school, and after you get out they give you about half a year to start making payments... If I remember right I got grants from doing this also, not sure if it was from the school or the Gov. but I got them never the less...
Check out a college access loan. I use it. 5.25% fixed interest that doesn't capitalize. But there is a 3% origination fee which sucks but also pretty standard for most loans. 6 month grace period after graduation, 50 dollar minimun monthly payments with a 10 year payback. http://www.hhloans.com That's the website.
What I am wondering, with these loans, they have $50 minimum monthly payments. Is there a penalty if I can pay more and/or pay it off faster than I signed up for? Like, if I got the 10 year payback but have the extra money to pay it off earlier, do I get penalized for it? btw, thanks guys for the help. Also, with the FAFSA, i noticed there is an application for the 2005-2006 school year. Does that count summer term? I am planning to attend summer classes in June.
Federal loans are still very cheap (<3%). If I remember correctly, they set the rates every July (or maybe June). They generally carry a 3% origination fee, also. Like someone said, they don't make you pay interest during school, but depending on the type of loan, it may still get capitalized. The private loans are more expensive, but still generally cheap. Depending on your credit, they range between Prime -0.75% or +0.75% with no fee. The only drawback is the rates are floating, and the Fed potentially still has another 1.5%-2% of rate increases left over the next 12-18 months Talk to your school. My school is really small, but they turn ours around in about 2 weeks, so don't stress too much about the timing. They should have a list of recommended private lenders if you can't access federal funds. Good luck
Dave last year's FAFSA 2004-2005 will cover this summer upcoming. The 05-06 FAFSA will cover Fall 05 to Summer 06. If you fill the 04-05 (which you'll have to for summer loans or grants), use last years tax info. not the tax info that's due this April. If you're looking for federal pell grants your EFC must be under I think 2800. FAFSA will calculate this for you but it's not set in stone you can always contact the local school's fin aid office and they can adjust the number accordingly if you can prove how poor you are. Schools can offer their own grants as well it's up to them. Honestly Stafford loans are not a bad deal, the interest ratesare very very low and fixed. Make sure and pay the interest as you go. When you fill out the FAFSA the first time they'll give you a pin number. KEEP THIS NUMBER!!! Write it down in your wallet, if you lose it it can take weeks for then to get back to you.
Academic Management Services is who I have my law school loans with. They take the 3% origination fee and give it back to you when you graduate in the form of a Visa check card. Better than losing it. http://www.tuitionpay.com/
