Comments for Shop Around for Student Loans

Shop Around for Student Loans

2007-05-02T20:05:39Z

With the recent fallout about educational institutions accepting all matter of filthy payola in exchange for letting private lenders get exclusive access to students, it's apparent borrowers need to take Student Loan Shopping 1000. NYT goes into how you can look for a better deal:

• Get Federal loans First: Ask your financial aid office about Stafford, PLUS and Perkins loans. These are guaranteed by law protected against you defaulting and they have capped, low interest rates.
• Ask the bank that your family has a mortgage with
• Find state nonprofs that provide student loans, like the Education Finance Council.

Get your learn on, try and go for a private loan that acts as much as possible like a federal loan, and know whether the interest rate is variable, or some bank is going to be schooling you in the ancient art of usury for the next 35 years. — BEN POPKEN

Try Shopping Around for Student Loans [NYT]
(Photo: Morton Fox)

Comment from sodipodium on 2007-06-07

2007-06-07T12:31:34Z

I will soon have to get a student loan for UCR and I've been hearing bad news about Sallie Mae, are there any services like Sallie Mae or Astrive that are maybe not advertised as much?

Comment from Trackback on 2007-05-03

2007-05-04T04:04:55Z

Dude Busted For Running An Illegal Bank For Tax Evaders From His Suburban Home Today’s lesson: don’t give your money to someone you don’t know who runs a “bank” out of his house. Oh, and you’ll get caught if you try evading taxes.

Comment from joyflop on 2007-05-03

2007-05-03T21:51:16Z

Thanks everyone! I don't have my paperwork in front of me, but I've already consolidated it with Sallie Mae, because I wasn't sure I could trust any of the offers that I was getting from other people. I'm hoping it's possible to re-consolidate with someone else. I really have to get to researching this!

Comment from The Walking Eye on 2007-05-02

2007-05-03T04:28:35Z

@joyflop: I graduated 5 years ago and was inundated with consolidation offers. I signed up for a 20 year at 3.25% cause I couldn't afford a 10 year at the time through Citibank (www.studentloan.com) and they were offering the lowest percentage rate.

Comment from CRSpartan01 on 2007-05-02

2007-05-02T21:22:12Z

I actually consolidated my undergrad loans with AES (I'm from Missouri) and I have an interest rate that's almost four points below what other lenders are offering. GO PA!!

Comment from mac-phisto on 2007-05-02

2007-05-02T20:41:52Z

if you live in pennsylvania (or are going to school there), AES/PHEAA are excellent organizations for student loans. in pa, the lending is provided on the state level as opposed to other states (like connecticut) that provide state funding to schools individually. all my loans are now consolidated under AES at less than 3%.

seeming how a college education can easily set a kid back 6-digits these days, it would be nice if political powerhouses like the national governor's association would start pooling information on their respective state programs to create a more accessible funding system.

ideally, any student with the desire & motivation to attend a school should never be denied based on funds.

Comment from Crazytree on 2007-05-02

2007-05-02T20:13:15Z

The problem with having your student loans with a company you have other business with is this: If you miss a student loan payment, they can seize funds from your accounts, or even foreclose on your car. I have seen this "offset" numerous times. Although unlikely, a bank may have the right [depending on state law] to foreclose on a secured asset to offset a delinquency on another account with zero warning.

Just something to think about. Don't put your eggs all in one basket!

Comment from patchmonkey on 2007-05-02

2007-05-02T20:09:48Z

joyflop,

Is the Sallie Mae loan you have a federal loan through them, or a private education loan (they offer both, if I recall correctly). If it is a federal loan, you can consolidate (or sometimes "reconsolidate") through a different provider. If it's a private educational loan, only a few banks will "consolidate" private loans, so I'd check the websites of college loan providers.

Comment from Nicholai on 2007-05-02

2007-05-02T20:05:38Z

That's what I do! Just stick a little donation box in the living room.
But it isn't exactly for collage........

Comment from joyflop on 2007-05-02

2007-05-02T19:53:32Z

Is it possible to get another company to take over my Sallie Mae loan? If so, how does one go about getting that done? I just started paying it off a few months ago. It's about $18K.

Sallie Mae really scares me, after all the stories I've read on here....

Comment from gafpromise on 2007-05-02

2007-05-02T19:53:26Z

pockygt, I second that!

Comment from pockygt on 2007-05-02

2007-05-02T19:41:30Z

I wish this story had been here BEFORE I racked up a ton of debt with Sallie Mae.