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Where is the best place to get a private student loan?

Where is the best place to get a student loan?

  • My wife is starting at a new college. She previously attended a community college that we were able to pay for out of pocket. She received a scholarship that will pay for 1/2 of the $24K. I believe she looked into fafsa, but our income is $140K and I don't think we'll qualify for any help. The problem is we just recently bought a new home and our old home never sold, so we are paying for 2 mortgages (and all the other expenses that come with 2 homes) and our cash flow is very tight. We would like to get a student loan to pay for the remaining 12K. The college offers a deffered payment paln where we can pay $800 a month. This would be great if we were not paying 2 mortgages, but with our poor cash flow I don't think we can swing that. Where can we find a good low interest loan from? Or any other things we should be looking at? Thanks

  • Answer:

    Why don't you have your wife go to the financial aide department at her university and make an appointment with an adviser. Have her ask for a list of lenders that provide students with college loans. There are many institutions that provide loans to college students who are unable to qualify for FAFSA. The college would be better able to give her resources to find the best loan possible for her. Best of Luck to you.

mr b at Yahoo! Answers Visit the source

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Try checking at your local bank, or banks. You can often get banks to compete for your loan. Another option is a home equity loan. With that, you can deduct the interest off your taxes and the interest rate might be a little lower than a federal college loan. The trouble with a home equity loan is that you cannot defer the payments.

Dobbie13

Check with the financial aid office of the college she is transferring to. They will have the info on all types of financial assistance for paying the college expenses.

Country girl

Federal student loans are available to students regardless of income. She would be eligible for $7500 as a freshmen, $8500 as a sophomore, and $10500 as a junior or senior (the class status is based on transferred credits and you should check with the financial aid office to determine how much federal loan she will be eligible for). I recommend that you exhaust the federal loans first before pursuing a private or alternative educational loan. Current interest rate on federal student loans is 6.8% fixed.

Jdub

With $140K of income, as long as she is not claimed as your dependent and is less than half that amount, she can probably apply for FAFSA with her income and get something. However, if the federal programs aren't working for you then private loans are a good solution. For school-certified private educational loans, many lenders are competitive and it's relatively easy to qualify. That should be able to cover the rest of the tuition for you. If that doesn't work, you can go for the non-certified private educational loans - but they are stricter. Sallie Mae* has the most lenient credit requirements of all lenders that I've seen for this type of loan, and is the only one I've seen (of over 100) that will do it on credit alone with no income (it's called the Tuition Answer loan*). This kind of loan sends the money directly to you rather than the school, and in many cases they will defer interest payments while in school (though interest still accrues). I suggest looking at both of your credit reports to see if you are above 650 rating. 700+ will help a lot for these types of loans. Paying off a credit card balance can improve the score by almost 50+ points if it's near its maximum. Educational loans tend to improve the score over time because they are "positive debt", so they can be used to pay higher-interest debt (normally that's not your mortgage though). Credit report (1 or all 3 agencies): http://www.experian.com/ * Based on personal experience, this is the best lender for some types of educational loans, though you might find school-certified loans cheaper. A long list of lenders to compare: http://www.finaid.org/loans/educationlenders.phtml Disclaimer: This is free advice. Use at your own risk.

Chris

FAFSA..this helps everyone. and credit unions.

36 weeks with a baby girl(:

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