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  • March 18, 2019, 05:00:16 PM

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Author Topic: First Time, Private Loans, and All Alone...  (Read 3790 times)

LyndonSC

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First Time, Private Loans, and All Alone...
« on: May 04, 2016, 06:09:28 PM »
I am attending Lyndon State College as a freshman this fall!
I applied for FAFSA and received $14,515 between loans, work study and grants. Better than expected!

However, I need to take out a private student loan for a little under $8000 to cover the rest. I am getting denied almost everywhere or offered interests rates around 10.50% (even with a parent with moderate credit as a co signer) Yikes!

I am trying to do some more research before applying with other lenders...

I have a college fund, a 529 to be exact, that my family and I are planning on accessing during my second to last semester in school, to pay off any debt I incur. We also plan to make interest only payments each year towards my debut. Knowing that we have the funds to pay for college debut at our finger tips (something I can't thank my family enough for) but not be able to take out the loans we need has been very frustrating. I am looking for any advice from anyone who has taken out private loans, with a cosigner whose credit is moderate. Tips, advice, places to try next...

I have been denied by discover and citizens bank, approved by Sallie mae but at an interest rate of 10.750% (much higher then I am willing to consider). Wells Fargo is my next try, but I am seeking advice before jumping into the next application.

Help!    :o

TheCollegeInvestor

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Re: First Time, Private Loans, and All Alone...
« Reply #1 on: May 05, 2016, 03:55:27 PM »
Try Credible to compare a bunch of lenders at once. Link is here: http://go.thecollegeinvestor.com/credible-student-loan

However, if you have a 529, I wouldn't wait to use the money. Paying off a loan doesn't qualify as a "qualified education expense", so it's better to use the money as you go early on, that to wait until the end. If you use the money to pay off the loan, you'll be subject to a 10% penalty and federal income tax on the money (so you'll waste about 30-40% of your 529 in taxes).
« Last Edit: March 15, 2019, 12:30:16 PM by TheCollegeInvestor »