Alternative Loans - here's what I've found - page 2

Hi! I've been using this forum to research the different loans that people have mentioned and here's what I've found.. The first thing is if you're looking for loans to live off of the key words... Read More

  1. by   Jessy_RN
    I have all my student loans with Sallie Mae. They have very reasonable interest rates and you don't have to begin repayment until 6 months after you graduate. I got a letter from them the other day that their rates will be going up, so make sure you check that out as well.

    Good Luck
  2. by   WestCoastRN
    Here is some information regarding LIBOR index and prime rate.

    LIBOR index is called London Interbank Offer Rate and the rate is set in London exchange market. It is considered the international interest rate on US Dollars. It is a floating (variable) interest rate in one, three or six months. I think for those student loans which are tied to LIBOR index, it uses 1 month rate, at least it is true in Bank of America. The 1 month LIBOR rate is 3.35% as of today. BoA graduate loan interest rate = 1 month LIBOR + margin of 4.65% to 7.25%. Assuming best credit, the borrowing interest rate is 3.35+4.65 = 8%.

    Prime rate is the interest rate a bank grants to the most creditworthy customers. It is normally 3% higher than the target fed fund rate set by Mr. Greenspan. Right now the primary rate is 6.25% and fed fund is 3.25%.

    I think federal Stafford loan is always the best choice, but it has a maximum one year loan amount of $18.5K. The interest rate was 1.25% + 1.7% = 2.95% 10 days ago, but now it is 3.25% + 1.7% = 4.95%. Alternative loans can be used only when Stafford loan is exhausted.
    Last edit by WestCoastRN on Jul 8, '05
  3. by   chansonsrna
    Sorry in advance for my long post.

    Well here is my situation. I obviously won't be working and wife makes enough to pay for the house where we live. However, I will be getting an apt 3 hours away for the didactic portion of my front loaded program. Tuition is expensive where I am going and Stafford loans will almost cover it. Enter alternative loans which my school decided to be a need based total of appx 20k/yr giving me a total of appx 18k to live off of and cover expenses not included in tuition. My wife and I decided to look for additional loans that are credit based so we are taking out 25k from bank one (through Chase) which is dispersed to us, and allows deferrment. I highly recommend those interested shop around before unemployment hits, you will find very few financial institutions will grant education loans outside of what schools determine as financial need. Needless to say this has really relieved a lot of trepidation my wife and I have had over our future budget. I looked at sallie mae for GRADUATE students, and funds were dispersed to school based on financial need determined by school. This would have lumped it into the need based alternative loans which I am already going to recieve making me ineligible.

    I strongly feel that though these are large numbers, we plan to not dip into the 25k if necessary, adding peace of mind that should large unexpected expenses arise we can take care of them. My wife and I feel anesthesia school will be stressful enough without needing to worry about money. I hope my experience helps relieve a fellow/future student/spouse worried about the financial impact of school.
  4. by   ArkyCCRN
    That was something stressed to me many, many times from our financial advisor to get your loan BEFORE you quit work.. in order to prove you have an income... because if you aren't working... then you have to get a co-signer.

    Now.. the sallie mae loan that is disbursed to the borrower is the Sallie Mae TUITION ANSWER LOAN. (just in case anyone was wondering). All these different companies offer SO MANY DIFFERENT LOAN TYPES that it's hard to know if we're looking at the right one.
  5. by   EmeraldNYL
    Okay, I think I found a private loan-- $30,000 and they send the money directly to me. It's from NextStudent www.teri.org. However, the fees seem kinda high to me. The origination fee is 6.5% and the interest is 7.78% (LIBOR Index plus I think 4.5%). Is this out of line for a private student loan? I know the BankOne loan had pretty high interest too. I'm shocked at how much interest rates have gone up-- heck, my car loan is only 4.5%!!! Any thoughts?
  6. by   WVUturtle514
    I went through Sallie May and Wachovia for my personal loans and got a great interest rate and the amount I requested for both of them. HOWEVER, I was under the assumption that these companies would cut the check directly to me.....a rude awakening for me when I spent a month waiting for a check to arrive and then found out that they will only cut the check to the student in certain cases, depending on your school's financial aid office. So I was stuck needing money to sign a lease, move to a different state and so forth and found out that I would not be receiving my money until my school (Georgetown) cut me a check from what was left over after my tuition and fees were paid. So I had to go out and get ANOTHER loan through Wells Fargo to cover me until my real loan money will get dispersed to me on August 23rd. My advice: When you talk to the loan company, MAKE SURE that they are a company that will send the money directly to you and not to the school. It will save you a big headache in the long run. Good luck!!

    Tracie
  7. by   Fox
    Bump
  8. by   BigDave
    I did get a $40k loan check delivered to my mailbox from Sallie Mae. Make sure you are doing the "tuition Answer" loan.
  9. by   Fox
    BigDave,

    How long did it take before you received your check?



    Quote from BigDave
    I did get a $40k loan check delivered to my mailbox from Sallie Mae. Make sure you are doing the "tuition Answer" loan.
  10. by   JessieLily
    So it is possible to fund CRNA education entirely by loans? (Even if it may not be advisable...???)
  11. by   BigDave
    Quote from Fox
    BigDave,

    How long did it take before you received your check?
    I had approval in April, but they would not mail it prior to 30 days before the semester started. But since the semester starts 22 Aug and they mailed it 30 June, it must be 30 days before the month the semester starts??
  12. by   jenniek
    Quote from darienblythe79
    This is a great thread. One question to those already knee-deep. How much can I expect to borrow if my husband will be able to cover living expenses, and school over 2 1/2 yrs will be 45K? Our debt right now is minimal. Two car payments (one will be paid off this time next yr), less than 1000 on the credit cards, and 5K from his student loan. Any thoughts are most welcome.
    My husband and I are in the same situation. We expect to only borrow the cost of tuition and will be able to cover my fall living expenses on campus through savings, ect. I expect to have about $40 through stafford loans, and hope that's the extent of my loans.
    Jennie
  13. by   leopold
    Thanks for the info. I'm kind of in a pickle right now cause I had to quit my job for health reasons. I do have a cosigner though. Do all of these loans require you to be employed? I thought Sallie Mae was available only to people who owned a home.

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