Worried about borrowing money? - page 2
Okay- I know there is probably a lot of worriers out there who have just been extremely excited about being accepted to CRNA school (me too), but now have realized===oh crap, I need some money! I... Read More
May 17, '10I am really happy and excited about school, but terrified of leaving my job and income too. I know that Wells Fargo is still offering a direct to borrower loan with a max of 25,000 per year. Obviously this would work for your first year, but if you need more, the second year would be tougher because you have no proof of income while in school. If anyone finds any other direct to borrower loans out there, PLEASE POST! As far as I know most have disappeared over the last 1 - 2 years unless you are a medical student. So stressful!
May 17, '10Go for Stafford 1st. Both Subsidized and Unsubsidized. Research the loan companies and look for the best deals: 0.5% off with automatic payments, etc.
For the secondary loan each semester: compare Private variables vs Grad Plus.
- Grad Plus doesn't require credit worthiness, but will have a higher fixed interest rate than Stafford.
- Additionally, Grad Plus loans will generally hit you with an origination fee (3%) that gets tacked onto the principle. Example, with a $20,000 2-part loan, there will be a $600 fee...so you'll be accruing interest on $20,600 during the deferment period.
- Private loans may have variable rates, but are extremely competitive against each other, and generally don't have origination fees. The interest rate is generally lower 3%-5%, but has the possibility to increase later down the road.
I opted for the private loan after the first year. The interest was 3% vs 7.5% grad+, plus no 3% origination fee. Additionally, the company paid me back 2% after graduation. It's my low priority loan based on interest rate, but has the potential to become a higher priority if the interest rate increases.
Also, some information on consolidating loans after school:
- If you decide to consolidate your government loans (stafford, Grad+), the moment you do so enters you into repayment. In other words, your grace period is up.
- It does NOT save you money. It averages the balances/interest rates of your loans, and rounds up. Additionally, most loans offer a 0.5% interest rate deduction with automatic draft...a benefit may lose if you consolidate.
- It may help organize your loans for you...but in the world of BillPay and auto debit, what's the difference?
The feeling of paying off a loan is rewarding and motivating. I took the approach of paying off the highest interest loan first, then re-applying that money into the next highest interest loan.
Hope this helps!
Aug 22, '10Hey everyone!
I got accepted into a 10 month LPN program through a tech/vocational school...so not technically a college. I start in September and was told by the financial aid counselor that I can apply for the Wells Fargo Non-Certified Student Loan (after maxing out my Staffords). I know they are still lending money, but how hard is it to get approved? I have a credit score of roughly 610 (lack of judgement during college) with spare job history because I worked as a nanny off the books, but I have a co-signer that has extremely good credit and 15 years at the same job. I only have 1 week until I apply, so I know that it's basically a waiting game, but just wanted to see if anyone else has been approved, or denied within the past few months! I need this money to pay the majority of my rent & bills while I'm in school (I will be working part time), so I really hope I get approved! Also, I know they say that you can take up to $15,000....I plan on applying for about $8,000...does that help? LOL.