Private student loans- best lender

[Saad91]

I'll be starting my MA this Fall and I plan to take out some privates student loans as I don't qualify for the federal loans given that I'm an international student. Could anyone please share their experiences with the lending companies? I've heard all of them are terrible but let's put it this way, which one is the least terrible lending company? I'll be really thankful for your help!

[weymiller]

I would look at a local bank or credit union.  I find those rates are comparable to other private companies and may be easier to work with.  I have looked into some because there variable rates are much lower than current federal rates, but the variable rates scare me.  At my local credit union, variable rates are at 2.73% and fixed rates are 6.74%.  However, the variable rates could go up as high as 9.5% depending on market rates and the rates change quarterly.

[Horb]

It depends on for what and how you need the money. For example, could you take out a loan from a bank and pay it off monthly? Or would you need to wait to repay until after you graduate? If the latter, you'll need a private loan. I'll assume that if you didn't need a loan, you wouldn't be taking it out and that it is your only option.

 

I have loans with Sallie Mae. All private loans are dreadful and it isn't so much about having a "good" experience as having a "better" experience. I've never had major issues with SM. They have three repayment options. I'm currently doing the $25 per month per loan plan (it helps reduce interest a little bit) and the pay the monthly interest plans. The third plan is to pay nothing. Interest accrues each month on all their loan repayment options and is compounded (i.e. if you loan balance was $1000 and the interest for the month was $45, the next month your interest will be on $1045, not the original $1000).

 

When I've called them with a minor issue or for information, I have had it resolved. Know that you can't change your repayment plan while in deferment, but that they have a variety of repayment options once your grace period (6 months after graduation) occurs. You'll have to call them if the automatic repayment is too much -- they have forebearance options and plans based on how much you make but you really have to dig for it. Also, calling them is a process. You have to keep shouting at the automated service to get someone, but they are knowledgeable once you get to an actual person.

 

Also, and this is kind of morbid, if you die, the loans are forgiven and not passed on to family (like some other loan providers demand) even if you had a co-signer. I think I covered the basics of my SM experience. Yours may vary if you go with them and while I hate the fact that I had to take out loans to begin with, it has been pretty smooth so far, though I'm not in the full repayment period yet.