Alternative Loans - here's what I've found

Nursing Students SRNA

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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!

I got $40k from the Sallie Mae Tuition Answer Loan. I sent them two pieces of paper: A copy of my last pay stub and a copy of my school registration that I printed off the internet. They add that to your credit report to base the interest rate and funding fee from. They did not contact the school nor did they care that I may have had other funds (loans or a $million in the bank--I wish!!).

See my earlier post--the fee/interest rate can suck if your credit isn't rock solid. Also, you have to actually have a job to apply. There may be ways around this, but if you are halfway through school and run out of money this can be a problem. I got the cash up front and put it in the bank for later.

thanks bigdave,

I had applied to a TERI loan (I think it was the START graduate loan) before I realized it req'd school cert--so I am hoping that is what the letter was about. The letter didn't specify which loan inquired. How long did it take you to hear from SM? I got preapproved already and faxed the stuff to them on Tuesday...same for the Wells Fargo loan.

I see you are in Charlotte, any thoughts on stipends here in NC?

Thanks!

k

I think I heard back pretty quick, but something that I did not notice was the fact that they do not send your $$ until 30 days prior to the semester starting. Since I was moving halfway across the country and they would not modify the check mailing address without starting all over, I was worried that my money would be floating around somewhere.

As far as stipends go, most of the folks in my program take the $500/month "forgivable loan"/stipend that the hospital that we are associated with offers. Even if you don't take a job there, supposedly most groups will pay off the $13k that you owe (or you can pay back over 36 months at 7%). There are 3 in our school that get $1000/mo. from the hospital in Shelby. I'm not sure about what your neighborhood offers, but from what gaswork.com shows, Morganton/Valdese are very hard up for folks and increasing the pay to something outrageous for NC. One of the girls graduating next month is going there. They might offer you a good deal??

Good luck!

Dave

I just received my "Tuition Now Loan" check from sallie mae. The only documents I had to send was a copy of my current class schedule and a current check stub. You can get preapprove in seconds, which is great.

Specializes in Med/Surg, Emergency.

Of course there's always that antiquated method of working through school and paying with cash.

That would be nice...except for the fact that you can't work while in CRNA school (maybe before clinicals starts) and with school running $30k and 28 months of living expenses running $3000/month for a family of 5. Do you have $100,000 saved up?

I did work 2days/week during NP school and came out with a 4.0 average. In grad school, anything less than an 82% in a class and you are sent home with your tail between your legs.

Then there is that philosophy of why should I bust my butt scrubbing butt for $25/hr when my time will be worth 4x that after I graduate. Paying back a loan is actually more time efficient.

BTW, I went to OUHSC for my BSN (class of 1995). Are you going there?

Okay everyone, I need some advice. Now that I have been accepted to anesthesia school the worry about money begins. I have read over all the responses in this thread and found it very helpful ~ thank you. I think the best private loans for me will be the bank one and sallie mae tuition answer loans. My concern though is that I already have a moderate amount of debt as well as a house and two cars in my name but a good credit score. So my question to everyone is - has anyone applied for loans that already has a moderate amount of debt (similiar to my situation) and gotten approved? And I start school in august when should I begin applying for my loans? Thank you.

katie1980

I don't own a home, rent the ol' apartment and I do make 1 car payment on a 2003 vehicle. Also have about 12K in credit card debt. I don't know how this compares to you, but I have never had a problem with loans or anythign. The very best advice on this thread is what has been repeated over and over again---apply before you quit your job. It matters to them that you are still having income. Plus all of the ones I have applied for so far ask if you want a co-signer and state that will help tremendously. Also, some have the incentive that if you continue to pay on your debt for a certain period of time they will cancel the co-signers responsibility for the debt or drop interest rates or both.

If you are really worried about how your credit stacks up, get a credit report from the three agencies and see how it looks. websites like equifax.com will give you access to all three for 29 bucks. there are added features which will give you your FICO score (the number that tells lendors how much of a risk you are, along with your debt to income ratio)....again why it is important to get those loans before you quit.

Hope this helps some...

k

You can obtain a free credit report from each of the big three every year at: https://www.annualcreditreport.com/cra/index.jsp

They do not give you the total score, but you can see if there are any blemishes that should be cleared up before going for a loan. (you can get the scoring or things like credit watch for an additional fee)

I would work on that soon, and keep your job? until after any loans are approved. For an August start, applying in April was plenty early for me. Remember, some want proof of enrollment. My school allowed me to enroll in early April for the fall (Nov 7th for the spring).

Bigdave

as always you are the wealth of knowledge...

didn't know about the free credit report thing...thanks again.

k

ok, so i just got accepted to anesthesia school and was extremely excited...until i read the student handbook and came across the phrase "the maximum amount that can be borrowed while attending is $55,500." inital thought...cool, i'll have 20k left to live on. then my basic math skills kicked in and realized that left me just over 700 bucks a month....and unless i plan on eating ramen noodles while living in my tent on the river bank, that just ain't gonna cut it. (and, of course, there's a little clause in there as well about being forboden to work during the course of study). i had just assumed that i'd be able to borrow enough to cover ALL my expenses.

so my question is, do personal loans (that don't get paid to me thru the school) count towards this total? or is it more of a 'don't ask don't tell' policy.

it really freaks me out to think i may not be able to even start the program b/c i don't have $30-40k just hanging out in my bank account.

read through all the postings (which were extremely helpful) but still haven't quite figured the answer to this out...

michewa,

you gotta read through this thread again if you are still confused. ArkyCCRN and Big Dave have done a fantastic job of supplying info. I printed it out and started making my own little notes, so that I could keep up-perhaps a bit anal, but hey, it helped!

Big thing to keep in mind (as others have so advised) is which loans require school certification and which don't. School certification: allows school officials to determine your need for a loan and the amt you may borrow for school. This severly limits what you can borrow as most schools do not recognize that we are a lot of students who require funds to LIVE off of as well as go to school.

Two loans I applied for, and do not require school certification:

1. Wells Fargo Education Connection Loan. Got 25, 000.

2. Sallie Mae Tuition Answer Loan. Got 30,000.

---Both loans are dispursed to me!

Mental note:

Loan to Learn, the START graduate loan adn Bank of America Education Maximizer all require school certification.

Good luck and post if you have more questions!! This thread has helped me immensly and hope it helps you too!!!

K

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