Which bank is best for alternative loans?

air · Apr 1, 2005

I start in August. How soon should I start applying for loans. I have a good job now, but that will drop to near nothing. I was thinking on doing this in April...too early??

It really depends on the particulars of your situation.

If you would work right up the July, then it would be best to wait until then. Apply electronically. The reason for applying close to your start date is to decrease the finance charge. It may not amount to much for per month. But when compounded the length of your program plus the duration it takes to liquidate the entire debt/loan, the amount becomes astronomical.

BlakeS · Apr 1, 2005

I was also looking into this loan to supplement the other finanical aid that is available. Here's my question. Is it a requirement that you stay employeed making the $15,000/year while in anesthesia school? I would rather work very little or not at all. I've made it this far and I don't want to blow this opportunity just because I can't borrow enough to provide for my family and thus submit to working. My other question is, does this loan effect how much federal aid you receive the 2nd time you apply for aid? Any info would be much appreciated.

Blake

I got a 30,000 unsecured loan throught Sallie Mae's Tuition Answer Loan program. It was very easy and they don't go through the school at all other than requesting a letter confirming your enrollment and they also tack on the fees and whatnot onto the amount. I got a check made out to me for 30000 within a couple of weeks of applying. You do have to have a job and make at least 15,000 a year I think...so apply before leaving your job if at all possible. Also I think that they just raised the max loan amount to $40000.
Good Luck!

BigDave · Apr 1, 2005

Air,

Good point...thanks!

air · Apr 1, 2005

I was also looking into this loan to supplement the other finanical aid that is available. Here's my question. Is it a requirement that you stay employeed making the $15,000/year while in anesthesia school? I would rather work very little or not at all. I've made it this far and I don't want to blow this opportunity just because I can't borrow enough to provide for my family and thus submit to working. My other question is, does this loan effect how much federal aid you receive the 2nd time you apply for aid? Any info would be much appreciated.
Blake

I understand completely.

If you are applying for a loan like the BankOne or the wells fargo's Plato loan, whereby school certification is not warranted, It would not affect your Finaid. I am assuming that you are a grad. Student. If you are a grad student then you will still get those garanteed stafford loans to the full amount. I think $18,500/yr.

lifeLONGstudent · Apr 2, 2005

For the original poster (we are both going to TCU),

TCU raised tuition from $640 per hour to $689 per hour, so that makes our school VERY expensive (I am in undergrad, not sure about grad rates).

I met with one of the FA counselors at TCU this week.

Stafford max per year is $10,500 for me (undergrad) but $18,500 for you (grad). Of that $10,500, $5500 is money that the gov't pays the interest while you are in school. She also said that a school "year" is considered Summer/Fall/Spring, so you would get another 18,500 come next summer (it would be prorated if you don't have another "year" of school when you reapply)

She also said there is 4,000 avail in Perkins loan administered by TCU for nursing (not sure about CRNA). Perkins is a very low interest loan. The TCU website also lists Etta-Newby loan for 2000 a year that is INTEREST FREE.

She mentioned the HELP loans for students in healthcare field. The website she gave me is www.hhloans.com - this is from the Hinson-Hazelwood. It is low interest.

She also mentioned the CAL loan for healthcare students. The only sucky thing about this is that you have to have a co-signer and it CANNOT be your SPOUSE (that is fun to be 40 and if your parents are deceased try to find a co-signer. give me a break)

She said that at TCU, summer tuition is due before classes start and there is NO payment option available. Also, summer school is based on # hours you take (13 hours x 689), but in long semesters it is block scheduling and regardless if you take 12 hrs or 18 hrs, the long semesters are $10,640 (for undergrad). She told me to start applying for loans/aid NOW (4-1-05) and it should take about 2-3 weeks. Money will be sent to our TCU student account and it is there before tuition payment is due. Otherwise, be prepared to drop off a personal check for $9857 (yikes). If you get more loan money than you need, you can keep it and use it for cost of living,etc or you can send it back to the lender thereby reducing you debt load (principle and interest).

Check the www.tcu.edu website and go to financial aid. They have a link of preferred lenders and each has a link to their website. Most of their websites post info about loans. I called a few yesterday and rates are anywhere from PRIME - 0.5% to PRIME + 5% (I only asked about rates for good credit). Many have perks when time comes for repayment like -0.5% for automatic payment drafts on your account, another -0.5% for 48 months of on time payments, etc.... so, shop around. Some will even give you rebates on your stafford loans for on time payments (and this is nice because there are fees by the government of up to 4% of your loan -- that stinks!). Best rebate I found was 4.7%.

I called Citibank, Chase, and Wells Fargo yesterday and they all said that they will check with your school to see what aid you have been awarded and what the costs of school are (tuition + room and board; also, TCU gives an estimate of room and board on the financial aid website)... then the lender sends the funds to your TCU student account (not you). Counselor said you can draft funds out of your student account when you need it for rent (cost of living stuff), books, etc. This irritates me because the school is making $ (I am sure) off of 'holding your loan money' ... like an escrow account. I would rather have it in MY savings and draft from it when I need it and I MAKE 2%, but that is the way it is.

Personally, I say get started now (well, my classes start May 16th). Sure you might have an extra month or two of interest if you get your loan too early, but I think that is better than having to cough up $10,000 out of your personal checking account in case your paperwork is late. JMHO. And, make an appointment with FA office - they are there for us.

lifeLONGstudent

BigDave · Apr 6, 2005

OK,

Well I applied for $40K through the Sallie Mae lender today. Actually the process was rather simple.

I filled out an abbreviated application, they fired off a quickie credit check, and I get a preliminary okie-dokie. Then I printed off the PDF prommissary note (had to fix a couple of things with ink changes), added my pay stub and attached a copy of my school acceptance letter and enrolled classes for Fall 2005 (I was able to enroll for the Fall on-line yesterday), and dropped it in the mail. There was a statement on the application that said that you could apply during the semester or one semester in advance. I'm out past that, but I asked for the check on the first of June--which will also save some interest.

I'll let y'all know how it went. Should know in a couple of weeks.

http://www.salliemae.com/TuitionAnswer/index.html

Here are the other lenders on this thread. I did not investigate them though:

http://www.wellsfargo.com/student/loans/graduate/

http://www.cfsedloans.com/index.html

http://www.teri.org/main.html

www.hhloans.com

http://www.bankofamerica.com/studentbanking/index.cfm?template=stb_studentloans_bofaaltloans.cfm

http://www.alternativestudentloan.com/

http://www.studentloannet.com/loans/private.htm

http://www.suntrusteducation.com/

duckboy20 · Apr 7, 2005

Big Dave, what kind of origination fee did you have with that loan? I just got approved for a 20,000 dollar loan through bankone but the origination fee was 2,400 dollars.

BigDave · Apr 7, 2005

I depends on your credit rating and whether you start paying now or after school is finished.

Excellent credit:

interest is prime+1.5%, 5%fee (6.5% if deferring)

Good credit:

interest is prime+2.5, 7% fee (8.5 if deferring)

Fair credit:

interest is prime+6%, 9% fee (10% if deferring)

So my total fee on $40K should be $2600...not too shabby!

The application was one of the most simple things that I have ever filled out. It was mostly just name, address, how much do you make, and where are you going to school. There wasn't any prying onto your stuff...much easier than even a car loan (and the bank has collateral on that).

I went big on the loan. I think $40 will do us. I also get $1000 a month GI Bill, my military retirement, and a planned depletion of savings. I was going to work in the ICU somewhere a bit as well (my classes are mon 12-8 and wed 12-3, front loaded didactic, post-masters), but I'm sick of working!

BigDave · Apr 11, 2005

OK, that was pretty quick:

Congratulations! Your loan has been approved and is scheduled for disbursement.

TexasCCRN · Apr 12, 2005

I have looked at several, except for finalities on sallie may, wells fargo has the best offer. 25000 with no origination fees. no penalties, etc for early payoff. The best so far.

jenniek · Apr 12, 2005

Our home mortgage is through Wells Fargo. Will have to look into that. Sounds like a great loan.

Jennie

TexasCCRN · Apr 15, 2005

Yea i have a car through them right now. Not a bad idea. Good luck to all.