Private Lenders

[KAMALAGRAD]

Hi all,

I know its late in the game, but I've been raking my brain trying to figure out how to pay for graduate school. The program is only a year long, but it is an expensive year. Here is a breakdown of my situation:

Program Cost: $70,000

Federal Loans Accepted: $20,000

Scholarship Provided by School: $2,500

So that leaves me with roughly $50,000 worth of tuition. I have pretty good credit history and from what I've been told should be able to attain private loans (as scary as private lenders may be). I thought I would ask around and see what different people's experiences were with taking out private loans from different lenders and see if I can learn anything from it. I was also, wondering if people knew of other options I should look into before my tuition is due in September.

[rising_star]

Your school can put you in touch with private lenders but the big names out there are Sallie Mae and Citibank as far as I know. You may also see if your local/national bank offers student or personal loans.

But, on a more serious note, what are you going to do with a journalism degree and $47K in debt?

[KAMALAGRAD]

Your school can put you in touch with private lenders but the big names out there are Sallie Mae and Citibank as far as I know. You may also see if your local/national bank offers student or personal loans.

But, on a more serious note, what are you going to do with a journalism degree and $47K in debt?

Hi rising_star,

Thank you for the reply. While the debt is pretty scary, I'm going to be actively looking for employment in my field upon graduation. As it is now I do tutoring, which keeps me on my feet (for the most part), but I really think this program will help me develop and move me in the direction I want to go in.

[matcha]

I've been having the same nightmare as well. I think I asked for enough loans to cover everything, but I'm nervous about not having my nice bimonthly paycheck to depend on! If I get into the year and discover I miscalculated, I will need to explore the private loan side as well.

[KAMALAGRAD]

I've been having the same nightmare as well. I think I asked for enough loans to cover everything, but I'm nervous about not having my nice bimonthly paycheck to depend on! If I get into the year and discover I miscalculated, I will need to explore the private loan side as well.

Hi matcha,

Thanks for replying! Well, its nice at least I'm not alone though it sucks any of us have to be in this pickle. Was your college any more helpful in guiding you in the right direction or did you have to just take a shot in the dark?

[matcha]

Yeah, I pretty much took a shot in the dark. I'm hoping I don't eat very much! :-)

My parents paid for undergrad, but from here on out it is just me. So this will be a learning experience for sure!

[2400]

Can you take out GradPlus loans? I thought grad students were eligible to take out stafford loans and gradplus loans to cover the cost of grad school. From what I understand, the gradplus loan can be borrowed directly from the government.It has a higher interest rate than the stafford loans, but it might be better than a private loan in terms of interest and repayment options.

Edited June 30, 2010 by 2400

[matcha]

Interesting... can you apply for a gradplus loan at any time?

Thanks! That could be a life saver!

[CommPhD]

Interesting... can you apply for a gradplus loan at any time?

Thanks! That could be a life saver!

Grad Plus loans have an application deadline. I believe it is generally before the start of the quarter you need them for, but it may vary by school. Get in touch with your financial aid office ASAP to find out. Grad Plus loans begin to accrue interest (8.5%) immediately (like private loans or unsubsidized loans), but in most cases you will not need a cosigner. My partner was just accepted to grad school beginning last month, but missed the deadline for summer Grad Plus loan applications so he had to take out a private loan.

He also has really great credit and is in his mid-20s, but he was denied for private loans without a co-signer. If you have a co-signer who also has great credit and qualifies, it is probably possible to get a private loan with a lower interest rate than a Grad Plus loan. Though I'm not familiar with the differences in repayment options.