Alternative Loans - here's what I've found

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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 that you don't want to see are "borrow up to the full cost of attendance minus any other financial aid that you have received". Those are based on what your school determines is what it costs to attend school for a year and for example.. the school I'm going to attend.. after federal loans.. loans that say that will only give me $10,000. These loans fall under "cost of education loans".

What we're looking for are OUTSIDE THE COST OF EDUCATION LOANS. If a company disburses the money directly to the borrower - then it falls under this category.

Wells Fargo Ed Connection/P.L.A.T.O.

- Annual amount 1,000 -25,000/year; no origination, disbursement, or repayment fees; interest from 5.75%-15.50% (depending on credit); can decrease your interest by 0.25-0.50% with auto-debit from checking acct.; decrease interest by 0.50% after 48 consec. monthly payments; 15 year repayment; $$$ disbursed to borrower

Suntrust - eMax Loan

- Annual amount 1,000 - 25,000/year; no fees (origination); interest from 6-15.5%; decrease interest by 0.25% with auto-pay; decrease interest by 0.5% with 48 month on-time payments; forgot to write down the repayment length; never got a hold of anyone to see if it's disbursed to the borrower or school

Bank of America - Education Maximizer

- 1500 - 30,000/year; Interest is figured with the Libor Index (couldn't find an exact interest rate); origination fees from 5-10.5%; proof of enrollment; proof of income; funds sent to borrower

PNC Bank - National Collegiate Loan

- 1500 - 30,000/year; interest using Libor Index + 4.65%-7.25%; origination fees 5-10.50%; repayment up to 20 years

Sallie Mae

- 1500 - 45,000/year; 20 year repayment; funds sent to borrower; supplemental fee from 5-10%; Interest from Prime + 1.5%-6%; fees and interest depends upon credit

Wachovia - Educaid Select Loan (???)

- 5,000 - 45,000/year; no origination fees; Prime+0%; unsure if it's an outside the cost of education loan. If anyone has info about this one please add on!

There's one more loan company that I found that offers these types of loans - I'll add that at a later time - but pretty similiar to Sallie Mae I believe.

I figured I would take all my research and save some people some time. If anyone has any additional information, wants to correct me or add to what I've found PLEASE DO! I want to make the best informed decision before I owe someone this much $$$ and I'm sure others do as well. I hope this helps!

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Thank you. I have a feeling this will be very helpful to me!!

I should find out today or tomorrow about my grants and federal loans. I am sure they are not going to be enough. I just dont know how I am going to make monthly payments for another loan. I have to already pay the school $75 a month. Then I have my regular bils. Grrrrrrr......

Have you found anyone that will give you a loan that you dont have to pay until your finished with school?

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Hey, all these loans are deferred loans meaning you won't have to pay them until you're out of school. Most of them give you the option to pay while you're in school, only pay interest accrued while you're in school (helps lower payments SLIGHTLY), or completely defer paying anything. Most of the companies will defer for 6 months after you graduate/leave school and some will defer for longer.

I think it would be great for people who read this thread to post which loan you're going to go with because that means it's probably the one you felt was best (the more popular one is probably the best). THanks!

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Specializes in Ortho, Med surg and L&D.
Hey, all these loans are deferred loans meaning you won't have to pay them until you're out of school. Most of them give you the option to pay while you're in school, only pay interest accrued while you're in school (helps lower payments SLIGHTLY), or completely defer paying anything. Most of the companies will defer for 6 months after you graduate/leave school and some will defer for longer.

I think it would be great for people who read this thread to post which loan you're going to go with because that means it's probably the one you felt was best (the more popular one is probably the best). THanks!

Hi,

Thanks, I'd like to share some information on these too.

I have a 10,000 sallie mae alternative loan to help me out with my final year of undergraduate.

The interest started immediately, the loan was paid to the school directly, not to me, I got what was left over after the school got its amount first.

This loan is not 'consolidateable' with my other subsidized and unsubsidized stafford and pekins loans.

I had to have a co-signer for mine and the co-signer is liable until I have made three years of payements.

So, while I could not have finished this final year without it, I will have to work harder to pay it off and have more interest, (accrued and at a higher rate.)

Gen

p.s. edited to update: Now that I am in school for my graduate entry program, (which costs $42,500. for two years for tuition alone) I have another alternative lender. Since it is graduate there is no co-signer needed, its citibank and its for my non-tuition needs and my cost of attendance outside of that, it is working so far so good for me but, another classmate adivsed that I make sure to make them the first one I pay back!

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Thanks! I will send this link to my husband to look at and help decide which way to go.

Jennie

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Specializes in PeriOp, ICU, PICU, NICU.
Thank you. I have a feeling this will be very helpful to me!!

I should find out today or tomorrow about my grants and federal loans. I am sure they are not going to be enough. I just dont know how I am going to make monthly payments for another loan. I have to already pay the school $75 a month. Then I have my regular bils. Grrrrrrr......

Have you found anyone that will give you a loan that you dont have to pay until your finished with school?

Hello,

I have student loans from Sally Mae. Have borrowed about 10 thousand already and I do not have to pay anything back until 6 months after I graduate. That is their policy.

Jessica

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Specializes in L&D.

Just an FYI--the Bank of America loan is also based upon what your school says is the cost to attend, I just found that out last night when I entered the amount I wanted to borrow. A screen popped up and said I asked for too much, but the good thing is it also told me exactly how much it would allow me to borrow based on my school.

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Bank one will give you $30,000 no matter what your school says you can borrow. I have been approved for the wachovia loan at$45,000 minus the 18,500 from stafford netting me $27,000 for this year as well as the $30,000 from Bank one and I am trying for another 12,500 residency loan which crna's qualify for. Anesthesia School is tough enough without having to live off of ramen noodles for 2 years. Here is the website for all your financial needs

http://www.teri.org got it from another SRNA from previous posts.

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Got $40k from Sallie Mae. The only thing that I sent with the application was a pay stub and a copy of my fall enrollment.

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With the Bank Of America loan.. I think it's only the education maximizer loan that can be used for anything.. they have a few different loans available but that's the only one that I found that sends the money directly to the borrower and all that.. the website is http://www.educationmaximizer.com and go to FAQ for details regardin that loan.

I looked up the Bank One Loan and here's some info about that:

Bank One - Education One Loan - Graduate/Professional Education

Interest= 7.22% and APR = 7.84%

borrow - 1500 - 30,000/year

funds sent to borrower

no financial aid forms or school cert. required

origination fee from 5-10%; no repayment fee

The other loan that I wanted to put at the start of the thread is from NextSTUDENT (http://www.nextstudent.com/private_loans/healthcare_eligibility.asp

Health Professions Private Loan

For CREDITWORTHY borrowers (good credit)

-you can borrow up to 45,000 annually and must show proof of enrollment, satisfactory credit history, etc.

- Interest (depends on credit) - Creditworthy health professional - Prime +0%; origination fee of 6% (and it said an APR of 4.56% but I'm not sure if that's correct.. I would double-check that)

-Credit READY rates are slightly higher and have additional fees

-Funds sent DIRECTLY to borrower

I can't seem to access this loan (NextSTUDENT loan) through links on the site so you'll probably have to type the put the address in to read about it.

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bump

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I don't really understand this Libor index versus Prime rate thing.... which is better? What is the lowest interest rate loan that people have found? I definitely need a loan where it doesn't depend on what the school says you can borrow-- but the BankOne interest rate seems kinda high to me. Any thoughts?

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