Sallie Mae Student Loan, Fixed or Variable?

  1. Hi guys,

    First of all, this is my very first thread and please understand even if the thread looks out of place. I'm writing to ask about student loan interests and thus thought Student forum was the correct place to have it on.

    Now, to the point.
    I got into a BSN program which starts in August at West Coast University LA. I've read many threads regarding the school, and like I felt for myself, the school program looks fine but the cost is horrible. I've applied for FAFSA and will take out Govt' loans, but, I still cannot afford most of the tuition which is around 130k overall. Therefore, I chose to take out private student loans of 48k from Sallie Mae and chose Variable Interest at around 9%. I'm deeply worried that I chose variable rate instead of the Fixed rate at around 11.5%

    Should I cancel the loan since it didn't disburse any amount yet and re-apply for a fixed rate?.

    I've been searching for hours and hours about fixed vs variable interest and which I should choose to go with, but, couldn't find an answer.

    Please any responds will help =)
    Will it be a bad call to just keep the variable interest I've applied for at 9%?
    Should I choose to re-apply and aim for 11.5%ish Fixed rate?
    Last edit by Joe V on Jul 1, '13
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    About Wonvie

    Joined: Jun '13; Posts: 5


  3. by   green34
    I wouldn't go with Sallie Mae at all. If you do, stay on top of it and be prepared to document everything. They lie a lot with their phone so try emailing them when you need to. I am staying away from giving financial advice though.
  4. by   amberdawn85
    130? Oh my goodness, I've never heard one of that high!
  5. by   Wonvie
    Thanks for the reply green34 =). Unfortunately, I had to go with Sallie Mae because the school had two corporations they were working with, and those were Wells Fargo and Sallie Mae. At first, I wanted to go with Wells Fargo, but the interest rate and loan limit wasn't just for me. I'll try to document everything from Sallie Mae. Thanks again!
  6. by   Wonvie
    Me neither untill I found this one =(
  7. by   Krazi4psych
    I would choose fixed that way you know upfront what you payments will be. With variable, your interest will keep increasing. I'm just curious as to why you're choosing a school that is so expensive?

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  8. by   TheCommuter
    My response is probably off-subject, but I would reconsider the school altogether due to the tuition rates. I was born and raised in southern CA, so I know all about WCU.

    At a reasonable interest rate of 6.8 percent, your $132k student loan debt will result in a repayment of $1,500+ per month for 10+ years. Since a part of your balance will be financed with private student loans that carry higher interest rates, be prepared for a $2,000 monthly payment (and misery) for many years to come.

    Think twice about that debt level. It will be the proverbial ball and chain dragging you down for years to come. The job market in southern CA is horrid for new nurses due to the economy, so there's a good chance it will take a year or longer before you land a job. And since pay rates are remaining flat due to wage deflation, most of your paycheck will go toward repaying this massive debt.

    I also attended a private-for-profit school, but I picked one out of state with more reasonable tuition, so I only owed $12,700 when my student loans went into repayment status in 2010, and it will be completely paid off before the end of the summer.

    I urge you to reconsider this plan. You absolutely do not want a $2,000 monthly student loan payment without a job to repay it. In case you did not know, the unemployment rate for new grad nurses in the state of CA is a whopping 43 percent.
  9. by   trebleclefmama
    Wonvie, why did you decide to choose wcu and how long did it take for you to be accepted? I was considering wcu as well.
  10. by   16mm
    I 100% agree with TheCommuter!! I'd reconsider the whole thing.

    I'd rather get on a 2 year wait list for a ADN at a CC than have 100k+ in student loan debt
  11. by   Wonvie
    Thanks everyone =)
    I've been thinking if I should look for another school or attend a CC and go for ADN after reading the replies. But then, I chose to attend WCU because I did not want to waste more years waiting for a spot that just cannot be guaranteed =(

    BTW, if its alright with you TheCommuter, which school did you go to? and where was it located?. I'm completely ignorant of out of state schools. I'm planned to start school in August and this anxiety just hit me since going to school and borrowing huge amount of money became reality I need to face in a month. I'll try re-considering the whole process

    @trebleclefmama, I chose WCU due to the fact that admission to WASC accredited BSN program is guaranteed unlike many other schools I've been looking into. And the whole course is a little faster. (If you don't actually care about the accreditation, then, I wouldn't recommend this school since it's too expensive. In my case, I had to choose a WASC accredited program since my ultimate goal is to become a CRNA). It took me about 1.5 months to finish the whole admission process including the Information Session, scheduling + taking the entrance HESI exam, and transferring college credits in. But, I'd say it shouldn't take that long since I personally was kind of going slow and wasn't sure if I should enroll or not. Still, I would recommend other schools if you can afford extra years.
  12. by   meeep
    Save the massive debt for your CRNA. Even if you have to move out of state, you'll end up spending way less than 132k, and you'll actually be able to find a job after graduation.
  13. by   Irish_Mist
    Do what you think is right. My advice: Reconsider. 130K is just way too much for a degree. You don't want to be saddled with that kind of debt especially if you don't get a job immediately or soon after graduating.
  14. by   zasaeki
    Please reconsider your options. I was in the same position as you were and felt like WCU was my only option since my undergraduate GPA wasn’t competitive and I didn’t have any experience to back me up. I was SO close to signing up and even went through the entire application process, but they were unwilling to transfer over a couple of courses which I thought was unfair since I graduated from a UC (apparently if you attended a school that went by a quarter system, your classes will not transfer over since they are shy by ~0.2 units). At the end of the day, I was able to bring my tuition rates down to $86,000 but only if I spend another semester at a community college taking prereqs. (PLEASE FINISH YOUR PREREQS AT A COMMUNITY COLLEGE BEFORE YOU ENTER WCU)

    So during the semester while finishing up my prereqs, I figured that I had nothing to lose trying to apply to different programs out there. I ended up applying to Pasadena City College, East LA college, and a nearby community college where I live in OC. I also applied to National U., West Governors U (a school I wouldn’t recommend if you’re pushing towards CRNA), and even United States U which I dropped early on. Thank God that I did apply because I got into 2 of the 3 community colleges (still unheard from ELAC). Pasadena City College goes by lottery so everyone has a fair chance. Now, I will attend community college for two years paying close to nothing and one year at CSU for my BSN. While WCU offered me a BSN in 2 years (I had most GE’s covered), I would rather spend an extra year in school and save me tens of thousands of dollars. WCU is NOT your only option. While they have a good program, I believe that it may not be for everyone.

    Oh, CRNA schools are just as expensive, unless you go public like CSUF. But can you get straight A’s from a program that accelerated (10 week courses)?