Need help with Borrowing loan.

[GoldenAgeHero]

I've been awarded a subsidized loan, meaning i don't have to pay interest while im in school.so does that mean right after I'm done with college i have to pay back with interest?


Subsidized – is awarded to student’s demonstrating a financial need as determined by the federal processor. Interest payments on this loan is subsidized (you are not charged interest) by the federal government while you are in school or during authorized periods of deferments.



alright now i have to choose a lender and this is where i need help, i don't know which one is best to pick. can anyof you help me out. what i want to do with this money is basically open up a CD with it, so i can earn some interest on it.(another way of saving upto buy a car)


When you are determining your student loan lender, three prominent components will guide your decision: cost, convenience, and service.

• How much will the loan cost you in terms of interest and fees? How much can you save if you consistently pay promptly?
• How easy is it for you to apply for the loan or get the information you need when you need it?
• Can you count on reliable service worthy of your trust and confidence? Does the lender sell your loans or will you be able to contact the same lender from the time you borrow the money until you have made the last payment?

Student loans are meant to help you reach your education goals. Wise decisions about borrowing money and paying it back can help you establish a good credit reputation.

Click on the lender logo or web address to research additional information and electronically sign your Stafford Master Promissory Note (MPN).
Lender Key Features

Wells Fargo
1-800-568-3567
www.wellsfargo.com/student​

807176

• 0% Origination fee.
• 0% federal default fee
• 2% interest rate reduction after making first 36 consecutive payments on time and enrolling in electronic statements
• 0.25% interest rate reduction with an automatic debit
• One servicer throughout the life of the loan
• Wells Fargo will not sell your loans

Wachovia Education Finance
1-800-338-2243
www.wachovia.com​

830005
Wachovia saves you up to 9.49% off your original loan amount. Our rebates reduce your total loan balance therefore you pay less interest over the life of the loan which increases your effective savings up to 9.49%

• Save 2% with Zero Origination Fee
• Save 3.5% of your original loan amount:
• 1% rebate at the start of repayment
• 1% rebate after 12 scheduled payments
• 1.5% rebate after 24 scheduled payments

SunTrust
1-888-889-5191
www.nelnet.net ​

824135

• 0% origination fee for loans after April 1, 2006
• 0.25% interest rate reduction with automatic debit
• 3.33% rebate of the original principal balance after making first 30 consecutive payments on time

Student Loan Xpress
1-888-274-0398
www.studentloanxpress.com​

823584

• 0% origination fee
• 5% principal reduction after 48 on-time payments
• Stafford borrowers receive a 0.25% interest rate

Edamerica
1-866-842-8045
www.edamerica.net​

831453

• 0% origination fee on Stafford Loans guaranteed on or after July 1, 2005
• 4% rebate of original principal balance after first 33 automated, on-time payments
• 3% interest rate reduction for students who qualify for the Florida Teacher and Nursing Edloan Programs

College Loan Corporation
1-800-2COLLEGE
www.collegeloan.com​

833733

• 1% cash back after graduation and 1 on-time repayment
• 10% credit of the principal balance outstanding for borrowers who make 48 consecutive, scheduled payments on time
• 0.25% interest rate reduction for enrolling in automatic payments

Citibank
1-800-967-2400
www.studentloan.com​

826878

• 0% origination fee
• 0% Federal Default fee
• Save up to 6% on your principal loan balance with Citibank’s ZERO payments the last 6 months when all payments are made on time
• Automatic 1.00% interest rate reduction as a graduation present
• Additional 0.25% interest rate reduction when you sign up for E-Z Pay auto debit and receive electronic statements only
• New! Benefit Recovery Feature: Unlimited chances to earn back automatic rate reductions lost as a result of late payments.

Bank of America
1-800-344-8382
www.bankofamerica.com/ studentbanking​

831846

• 0% origination fee
• 0.25% interest rate reduction with automatic debit
• 3% principal reduction after the first 36 consecutive months of on-time payments when the borrower is signed up for electronic statements

AMS, a Sallie Mae company
1-800-890-7289
www.amsweb.com​

833067

• 0% origination fee and guarantee fee (through USAF)
• Proof of graduation required
• 1.5% credit at repayment
• 1.5% credit after first 12 on time payments
• 1st year of first unsubsidized loan is interest-free
• 0.50% interest rate reduction after first 36 on time payments

Academic Finance Corporation (AFC)
1-561-301-1483
www.afclending.com​

833864

• 0.25% interest rate reduction upon entering repayment
• 1.75% interest rate reduction upon signing up for ACH
• No minimum number of on-time payments is required to receive these benefits

 

[Immortalfire]

That's a lot of numbers.

 

[Poetic Chaos]

I hate filling out the FAFSA. It makes me want to kill.

 

[Mee]

Asian Hypesters, I choose you!

 

[Jack Rabbit]

I'm sorry, I was asleep by the Wells Fargo logo.

 

[Speedball]

*swoosh*
Right over my head.

 

[GoldenAgeHero]

damn you guys suck balls. I don't really know which to choose

 

[GoldenAgeHero]

anyone? where the hell is jag when you need him

 

[Erzengel]

This is different from the loan I recieved GAH.

It was an unsubsidized loan and it was given through my school. I didn't have to choose a bank or lender. I just owed the government after school.

 

[Wilhelm-Scream]

They'll wachovia while you sleep.

 

[jaguarr]

anyone? where the hell is jag when you need him

Sorry, man. I don't know jack about student loans. I made it through school without having to incur one because I worked my ass off while I was taking classes to cover tuition.

jag

 

[Ahura Mazda]

You know you have to take in account several factors when borrowing from a bank and not all thos factors can be found in the figures above.

The offfers generally look competitive side by side even though you do have a few up there whose offers are unattractive.

One thing you need to see is what margins each will ask, and what scvhedule they will fix you when you start making the repayments. Also whether you have pre-payment penalties or not.

Remember as well, that you will have a relationship with your lender for quite a while and make sure the one you have is solid, with a clause not allowing them to sell your debt without your priour approval.

I would suggest contacting a sample of 5 banks and asking them for offers with yur particulars. Thereafter you can try and make an intelligent decision as to what bank to go for.

A little hint, a rebate is a great saving as this not means you reduce your interest payments, it also means a reduction in the principle amount that you have to repay as well.

I have allot of experience in borrowing but I have never done it for a student loan as I tend to borrow to finance acquisition and its in the amounts of millions, so the relationship would be different then the ones I may be used to.

 

[Wilhelm-Scream]

Sorry, man. I don't know jack about student loans. I made it through school without having to incur one because I worked my ass off while I was taking classes to cover tuition.

jag

I think that's what he meant. He wants you to get a second job and pay his way through school since it's too hard to figure all this loan stuff out and he doesn't know how to bust ass.

 

[jaguarr]

I think that's what he meant. He wants you to get a second job and pay his way through school since it's too hard to figure all this loan stuff out and he doesn't know how to bust ass.

Oh...

jag

 

[hippy fascist]

ummmm,

odd question but maybe financial decisions that are going to be effecting you 10-20 years down the line would be better resolved by a financial adviser at your bank rather than a bunch of people on a superhero messageboard...

I mean, do you go to imdb for medical diagnoses?

 

[jaguarr]

I mean, do you go to imdb for medical diagnoses?

You'd be surprised....

jag

 

[Erzengel]

I think he needs to go to an accountant because I'm sure every bank will tell him they are the right bank for him.

 

[chamber-music]

I hate banks. I keep all my money under a matress which I guard with a loaded shotgun

 

[hippy fascist]

I think he needs to go to an accountant because I'm sure every bank will tell him they are the right bank for him.

Most banks will provide him with free financial advice without charging an arm and a leg for it. If he goes to his own bank they will be able to steer him in the right direction as long as he makes it clear that this is the loan he wants.

 

[Ahura Mazda]

the best is to see several and get an excel sheet down and calculate exactly what it will cost you and be realistic about it.

Paying back a loan means you are going to be earning less when you start working and do not forget that.

If I were you I would get the interest free loan, and take a job.

If you are allowed to pre-pay, just use the principal to invest in some low risk vehicles that will offe you a return and take a job to pay for your living needs. The income you will generate from using the principle yould end up being a little bonus with no penalty if you can pay back the principle before the interest period starts.

Edit: Hippy's advice is very good. You should seek professional advice regarding a potential loan.

 

[Duende Verde]

They'll wachovia while you sleep.

 

[jaguarr]

^^^

What is that, DV? Redneck *******?

jag

 

[Duende Verde]

^^^

What is that, DV? Redneck *******?

jag

aka Wachovia.

 

[Wilhelm-Scream]

Redneck *******?

jag

The genre whose time has come.