Private Education Loans

Information on Loans, Scholarships, Grants, etc.

Private Education Loans

Postby Brandon » Sat Sep 08, 2007 12:14 am

Is anyone familiar with them? Are they hard to get? Do I need co-signer? Bear in mind that I have very little credit, beyond a small credit card bill and a utility that I let my brother get in my name. Are these loans a good idea, bad idea, or a mix?
Be sober and watch: because your adversary the devil, as a roaring lion, goeth about seeking whom he may devour.

- 1 Peter 5:8

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Brandon
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Re: Private Education Loans

Postby Khan » Mon Sep 10, 2007 12:56 pm

Brandon wrote:Is anyone familiar with them? Are they hard to get? Do I need co-signer? Bear in mind that I have very little credit, beyond a small credit card bill and a utility that I let my brother get in my name. Are these loans a good idea, bad idea, or a mix?


It's like any loan based on credit. If your credit is really good, you don't need a co-signer and you'll get a decent interest rate. If it isn't, you can really get stuck. One late payment and you've got a 20% or more interest rate and depending on the tuition, a ton of principal.
The worst case scenarios I've seen with these loans is when a school closes on people without warning. It embroils you in a fight with SLM or whoever for months. And you might not win.

My advise is to get Title IV money if possible. You have better mechanisms for consumer protection if the crap hits the fan.
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Postby Khan » Mon Sep 10, 2007 1:19 pm

I should make a disclaimer however that I work in consumer protection and only see the bad side of these loans.
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Postby Brandon » Tue Sep 11, 2007 12:12 am

Thanks for the information. I don’t really want to take out a private loan but I might very well have to. I hope to avoid having to do so.
Be sober and watch: because your adversary the devil, as a roaring lion, goeth about seeking whom he may devour.

- 1 Peter 5:8

Bernie 2016

Support the Pregnant Women Support Act!
Brandon
Senior Member
 
Posts: 1890
Joined: Fri Feb 17, 2006 11:02 pm
Location: Indiana


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