Best private loan sources

[Imhotep]

Hi,

I was accepted into some programs with only part of the tuition covered by in-school grants and loans. I'm looking to make up $20,000/year in private loans. Does anyone have recommendations on the best places/banks/national fellowships to look for this sort of money?

[hayhale]

Stay away from private loans at all costs! They are terribly unforgiving and there is no flexibility on repayment, as opposed to government student loans, which offer income based repayment, etc. I had a roommate whose private student loan payments totaled $800 per month due to taking on private loans for a private masters degree, she's an elementary school teacher. Since it looks like you will be working in the public sector, these loans will be a very real burden. Government loans are forgiven for public sector employees after 10 years of repayment, regardless of the amount still owed on the loans.

 

If you have no choice but to take out private student loans, I've heard good things about Discover Student Loans. Again, this type of loan should really only be used in last case/emergency scenarios.

 

Good luck!

[AboveTheRim]

Every grad student qualifies for Unsubsidizied Stafford loans from the government. You get $20,500 per year. The rate is 6.8% and the flexibility is much greater than private loans (i.e. you can go into forbearance, forgiveness, etc). Do not, do not, do not, do not go into private loans for grad school unless it's your LAST OPTION. And if that's your last option, which it doesn't sound like it is, but if it is, RETHINK GRAD SCHOOL!!!