Best Private Lender for Student Loans?

[FirstTimertoDiz]

Hi gang- I am going to be headed back to school full-time in the fall for nursing. I am finishing a class now, and will be taking 2 classes this summer to finish all my pre-reqs. I have managed to cash flow school so far, but I am going to fall short for the summer and for the next four semesters. I have to be careful, because we are a family of four, so I can't cut myself too short.

I am currently working as a casual CNA at a nursing home. I am working as much as my family schedule will allow right now, but once I start nursing school in the fall, it is really recommended not to work at all since the program I am in is so intense. (It is an accelerated 2nd degree program- 16 months straight through, and I will have a BSN when I am done.) So, I am looking at not only losing my income, but I will also have to put dd1 into daycare full-time, and try to figure out where that money is coming from.

I have looked into subsidized daycare, and just miss the income requirements. I filled out the FAFSA, and my expected family contribution will be 3500 for this summer, plus $2500 per semester after that; the rest will be in federal loans. I received no grants, and no scholarships, even after applying relentlessly for anything I qualified for.

So, now I am forced to look at private student loans...which I am really nervous about. I am looking at finishing school with over $40,000 in loans, which makes it hard for me to sleep at night.

Any advice on which lenders you have had experience with would be greatly appreciated....Sallie Mae, Discover, Wells Fargo, Suntrust, Chase, etc.

Thanks fellow Diser's!!

 

[Stumpy]

I financed through Sallie Mae and they are a reputable company. One thing I enjoyed was that after 4 years of consistent payments I got a 1% reduction in interest rates. Of course, I didn't have experience with the other companies you mentioned, but I know they are basically reputable as well.

I would say shop around to see which one has the best interest rate to offer, but if you are an adult I think you are guaranteed a loan at a set rate of 6.8% or something to that effect. My wife is back in school and they set everything up with minimal effort.

 

[StephMK]

Congrats! I am just finishing up my first year going back to school FT. I would think you probably qualify for Stafford loans and I'd look into those first before you go private. Depending on your entering grade level will determine the max you can borrow. The interest rates are low & fixed which helps. Your financial aid office should be able to give you details or check their website for info.

I agree, it's very scary to take on student loans but I love my program & figure over the course of the rest of my working life, it is still a good investment. Good luck!

 

[FirstTimertoDiz]

Thanks for the replies! I unfortunately don't qualify for Stafford loans, as this will be my second bachelors degree.

I hate the thought of having so many loans hanging over my head, but I guess I will have to suck it up and get through it so I can get a better job in the long run.

I am definitely going to look around a bit more to see which loan will be the best; the issue I am having now is that you have to complete the application process for them first- then once you are approved, they will tell you what your interest rate will be....kinda shady in my opinion.

Ok, now here is a really stupid question....say I will need a total of $8000 in loans over the course of 5 semesters....do I apply for that total amount now, or do I just ask for what I will need for the current semester, and then apply later for the next semester?!?!

Thanks!

 

[rparmfamily]

I think it's all about to change...my sister works for Sallie Mae and is about to lose her job because of the student loan reform attached to the Health care bill.

 

[pookybean]

hello, i work for the subsidized child care program in PA. there are other exceptions that might make you eligible.

PM me if you would like and i will see if i can give you some hints

megan

 

[tinkerbell313]

You do qualify for the federal guaranteed student loans even for a 2nd bachelors degree...as long as you have not met the aggregate loan limits for an undergraduate student of $57,500 (of which the maximum subsidized is $23,000). Therefore, even though you might have taken out loans for your first degree, as long as you have not met the maximum of $57,500...you can take out more loans.

You do have to be enrolled at least 1/2 time per term at your school to get federal loans.

The interest rate on the federal subsidized is 4.5% fixed for the life of the loan for loans disbursed after July 1st.

The interest rate on the federal unsubsidized loans are 6.8% fixed.

You school along with the results from the FAFSA will determine if you are eligible for subsidized (as long as you did not use up the maximum of $23000 for your 1st bachelors degree). If you did, then you can get unsubsidized.

If you have to go the private loan way...the lenders are fewer and far between (than in prior years). Interest rates on private loans are based on the students credit report (and the cosigners credit report if a cosigner is required). You need to be careful as these loans have variable interest rates.

SallieMae's alternative loan is the Smart Option loan. This loan requires that you pay the interest that is acrueing on the loan while you are in school. This is a smart practice financially...however, for many students (especially traditional age students) it just is not an option as they have no income to pay the interest off. Sallie Mae tends to have higher interest rates...but, they are easier to obtain a loan from.

Other lenders include:
Citibank has a CitiAssist Loan
Wells Fargo has the Wells Fargo MedCap loan for Health Professionals.
Discover Student Loans
Chase Student Loans
PNC Bank for Health Professionals


The recent changes to Student Loans as a result of the Health Care Reform Act apply to the federal student loans. It does not affect the private student loans. Basically, the Health Care Reform Act has done away with lenders being the middle man with regards to the federal student loans. Students used to obtain the federal loans from lenders who obtained the oney from the government. Now, schools/students must work directly with the federal government.

Good Luck

 

[tinkerbell313]

I am definitely going to look around a bit more to see which loan will be the best; the issue I am having now is that you have to complete the application process for them first- then once you are approved, they will tell you what your interest rate will be....kinda shady in my opinion.

That's how most personal loans work as well...car loans, mortgages, etc. If you do not like the interest rate, you have the option of rejecting the loan.

Regarding how much to ask for...your school, by law, can only certify so much. If they can certify for the full $8000 up front they will. However, you need to be careful and not spend all the money on day to day living expenses if you are saving it for tuition for subsequent semesters (the school will release excess monies to you after all charges have been paid).

At my employer, we certify and disburse it over several semesters. Often a student will tell me that they want XX amount in the Fall, xx amount in the Spring, and XX amount in the summer. As long as its allowable by the federal rules, I will honor their requests.

You start accrueing interest on the loan the day it is disbursed (released) to the school. Therefore, if you do not want all that interest accrueing, ask your school to tell the lender how much you want each term. That way, interest is only accruing on the portion that has been released.

We only certify loans one academic year at a time at my employer. So, if you are going 5 terms...the student would need to apply for two loans (one this year; and then, one next year)

 

[FirstTimertoDiz]

You do qualify for the federal guaranteed student loans even for a 2nd bachelors degree...as long as you have not met the aggregate loan limits for an undergraduate student of $57,500 (of which the maximum subsidized is $23,000). Therefore, even though you might have taken out loans for your first degree, as long as you have not met the maximum of $57,500...you can take out more loans.

You do have to be enrolled at least 1/2 time per term at your school to get federal loans.

The interest rate on the federal subsidized is 4.5% fixed for the life of the loan for loans disbursed after July 1st.

The interest rate on the federal unsubsidized loans are 6.8% fixed.

You school along with the results from the FAFSA will determine if you are eligible for subsidized (as long as you did not use up the maximum of $23000 for your 1st bachelors degree). If you did, then you can get unsubsidized.

If you have to go the private loan way...the lenders are fewer and far between (than in prior years). Interest rates on private loans are based on the students credit report (and the cosigners credit report if a cosigner is required). You need to be careful as these loans have variable interest rates.

SallieMae's alternative loan is the Smart Option loan. This loan requires that you pay the interest that is acrueing on the loan while you are in school. This is a smart practice financially...however, for many students (especially traditional age students) it just is not an option as they have no income to pay the interest off. Sallie Mae tends to have higher interest rates...but, they are easier to obtain a loan from.

Other lenders include:
Citibank has a CitiAssist Loan
Wells Fargo has the Wells Fargo MedCap loan for Health Professionals.
Discover Student Loans
Chase Student Loans
PNC Bank for Health Professionals

Good Luck

WOW- thank you! That was a lot of great information.

Ok, let me decipher some of this; I think I was misunderstanding the Stafford loans comment earlier, and I misspoke. I am in fact going to be getting some federal loans for the 2010-2011 school year based off of my FAFSA. It is a mixture of some subsidized loans, and mostly unsubsidized. For some reason, I was thinking the Stafford was something different, but I think I am wrong.

I am looking for the personal student loans to make up the difference in what the federal loans don't cover. From what I am understanding, you can use the personal loans for books too, right? That is another concern of mine; this fall I am taking 16 credits of nursing classes, and I have gotten a textbook list for 3 of the 5 classes so far...all of the books I have to buy new because they require the cd access codes that are included in the book. So far, my total is over $500 in just those 3 classes alone...eek! These costs just keep adding up.

I will definitely look into that Wells Fargo loan for health professionals...thanks again for so much info! I felt like I was wading in mud earlier as I was trying to figure this all out....you all have given me hope that I just may be able to make it all work!!!

One of the many reasons I love the Dis!!

 

[tinkerbell313]

I just wrote you a post...and lost it!!! Ughhh.

Yes, you can borrow for books, living expenses, childcare expenses, transportation costs (but not car payments).

You may want to ask your institution if they have Federal Perkins or Federal Nursing loans. Both need based loans have a maximum of $4000 for the year with an interest rate of 5% fixed. Out institution doesn't have many to give out...but your institution may.

 

[StephMK]

Also, unless your books are school specific, there are many places online to buy books that are cheaper than the school bookstore. I have used Chegg.com to rent some books and amazon & textbooks.com for others. My plan for the rentals is to go back & buy the ones I want to keep in a semester or two when they are outdated & cheaper. I don't highlight in my books so it's been easy to rent & return.

At our school, they disburse financial aid each semester so while I had a one total borrowed for the year, they did half & half. I was also able to complete a form at my school that stated while my FAFSA showed x amount, that was based on my FT employment. I had to quit to enter the program so they took that into account when they provided loan amounts.

 

[FirstTimertoDiz]

I just wrote you a post...and lost it!!! Ughhh.

Yes, you can borrow for books, living expenses, childcare expenses, transportation costs (but not car payments).

You may want to ask your institution if they have Federal Perkins or Federal Nursing loans. Both need based loans have a maximum of $4000 for the year with an interest rate of 5% fixed. Out institution doesn't have many to give out...but your institution may.

So, the Perkins and the Federal Nursing Loans come from the University itself? Do they decide then who gets them? Maybe I will have to try the financial aid office again...this is my first time at a large university (I went to a relatively small state school the first time), and so far the experience has not been a pleasant one. Every time I have a question, I keep getting passed from person to person, and every person tells me something different! Frustrating to say the least...I have had more wrong answers from this school than I have correct ones.

Thanks so much for all the info- it has been a huge help!!

 

[FirstTimertoDiz]

Also, unless your books are school specific, there are many places online to buy books that are cheaper than the school bookstore. I have used Chegg.com to rent some books and amazon & textbooks.com for others. My plan for the rentals is to go back & buy the ones I want to keep in a semester or two when they are outdated & cheaper. I don't highlight in my books so it's been easy to rent & return.

At our school, they disburse financial aid each semester so while I had a one total borrowed for the year, they did half & half. I was also able to complete a form at my school that stated while my FAFSA showed x amount, that was based on my FT employment. I had to quit to enter the program so they took that into account when they provided loan amounts.

Hi there, my books aren't school specific, they just have to be new. I am watching Amazon and Barnes and Noble for the textbooks (I can go through ebates at BN, and it sometimes ends up cheaper.) I'll have to look at textbooks.com- never tried there. That's funny you mentioned chegg.com- I just ordered one of my summer class books to rent from there the other day! It's the first time trying them, so it's nice to hear good feedback, lol!

Hmm, I'll have to ask about that form for changing the FAFSA info; I am in the same situation. In fact, the last time I went to the Financial Aid Office, I told the woman specifically that information, and she never mentioned any form that I could fill out....basically just told me that financial aid is based off of last years income, and I was outta luck. (Not those exact words, but you get the idea.) Now at least maybe if I ask for something specific, someone can help me...thank you!!

Just took my final for my micro lab...I have off work and class tomorrow, so my plans are to apply for a couple more scholarships, and get all of this info organized.
Lisa

 

[tmccullough]

Have you checked to see if your state has a nurse shortage? MD is a nursing shortage so if you sign an agreement to work in any public health capacity in the state which is basically any hospital,etc., they will pay for all your college expenses including a living stipend. If for some reason, you quit the job, you only have to pay for the amount of time you never fulfilled. Hence, say it takes 2 years to get through the program full-time. You would have to agree to work for 2 years full-time and never have to repay a dime... and of course, get paid the same salary at the job. Great program... but check the nursing department for information. A lot of times, the financial aid office lacks in some of those major specific grants available. Oh, and their not based on financial need either.

 

[StephMK]

Hi there, my books aren't school specific, they just have to be new. I am watching Amazon and Barnes and Noble for the textbooks (I can go through ebates at BN, and it sometimes ends up cheaper.) I'll have to look at textbooks.com- never tried there. That's funny you mentioned chegg.com- I just ordered one of my summer class books to rent from there the other day! It's the first time trying them, so it's nice to hear good feedback, lol!

Hmm, I'll have to ask about that form for changing the FAFSA info; I am in the same situation. In fact, the last time I went to the Financial Aid Office, I told the woman specifically that information, and she never mentioned any form that I could fill out....basically just told me that financial aid is based off of last years income, and I was outta luck. (Not those exact words, but you get the idea.) Now at least maybe if I ask for something specific, someone can help me...thank you!!

Just took my final for my micro lab...I have off work and class tomorrow, so my plans are to apply for a couple more scholarships, and get all of this info organized.
Lisa

Why do they have to be new? If it's for the online codes, sometimes you can just buy the codes separately. I was supposed to have codes for a few of my classes but didn't know that until I'd already bought used books. While I could have bought the codes for $40, I decided to wait & see & never ended up needing the online supplemental info.

The form I completed was from my school, not a govt form. But it allowed me to write in any additional info about my financial situation. I explained I have kids & quit my job.

Hang in there! I got a lot of run-around when I applied to & it was very frustrating & stressful waiting to see if it would all work out. It has & I just got my funding letter for next year & my schedule is all set.

Even when you're in school, make sure you're aware & stay on top of your stuff. I researched all my possible schedule options, financial possibilities & what i needed to do to be FT vs PT, etc. I knew my first semester all the classes & when they would probably be based on prior semesters so nothing would fall through the cracks. I have still gotten incorrect info because the advisors, financial & registration people are not always on the same page.

It's worth it and the college profs have been great but you are the best person & have the most invested in making sure you've got everything covered.

 

[vzjsp5]

Thanks for the replies! I unfortunately don't qualify for Stafford loans, as this will be my second bachelors degree.

I hate the thought of having so many loans hanging over my head, but I guess I will have to suck it up and get through it so I can get a better job in the long run.

I am definitely going to look around a bit more to see which loan will be the best; the issue I am having now is that you have to complete the application process for them first- then once you are approved, they will tell you what your interest rate will be....kinda shady in my opinion.

Ok, now here is a really stupid question....say I will need a total of $8000 in loans over the course of 5 semesters....do I apply for that total amount now, or do I just ask for what I will need for the current semester, and then apply later for the next semester?!?!

Thanks!

Check with your school's financial aid office. With all of the new student loan process going on (the federal government taking over SLs) things are changing up a bit.

I know that personally, my school based my total yearly financial aid on a combination of my FAFSA and the cost of attendance. That is where you EFC comes in off your FAFSA. So basically, the more your school costs, the greater the difference between your EFC and Cost of attendance.

The financial aid office will be able to answer these kinds of questions for you. Usually they do an aid report/award for the entire year so you know what to expect. Good luck and my advice is if it seems fishy to you, check elsewhere. Definitely go with a more reputable lender. I've heard horror stories about student loans and wouldn't wish that on anyone.

Best wishes!

 

[Irin997]

DO NOT buy your books new!!

You have the option to purchase an access code (IF NEEDED) from the publisher.

In a lot of cases, I have purchased books and never, not once, needed the supplemental online material. Wait and see if you actually need it. If you do, the publishers have been smart enough to sell access codes online for all of their books.

Check half.com. I purchased (and sold) most of my books here and I just got my degree last May.