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Advantage of federal loans?
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Date: February 6th, 2010 1:22 PM Author: impertinent bearded center I feel like everything I read says that you should exhaust all of your options for federal loans before turning to private loans. Aren't the interest rates on gradplus something crazy like 8.5%. I know they have narrow IBR type plans but even those may be hard to get. Private loans seem like the better option if the interest rate is lower. Is there something I'm missing? (http://www.autoadmit.com/thread.php?thread_id=1214108&forum_id=2#14032875) |
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Date: February 6th, 2010 1:24 PM Author: vibrant unholy home are you expecting to have a high income post graduation? (http://www.autoadmit.com/thread.php?thread_id=1214108&forum_id=2#14032890) |
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Date: February 6th, 2010 1:26 PM Author: impertinent bearded center No. I know with IBR though all the interest would continue to accumulate so if you ever did make money, you would pay dearly for it later. (http://www.autoadmit.com/thread.php?thread_id=1214108&forum_id=2#14032911) |
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Date: February 6th, 2010 1:26 PM Author: Dull office wrong (http://www.autoadmit.com/thread.php?thread_id=1214108&forum_id=2#14032915) |
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Date: February 6th, 2010 1:33 PM Author: Sienna curious sandwich how is what he's saying wrong? (http://www.autoadmit.com/thread.php?thread_id=1214108&forum_id=2#14032962) |
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Date: February 6th, 2010 1:33 PM Author: Dull office because it's not true. (http://www.autoadmit.com/thread.php?thread_id=1214108&forum_id=2#14032965) |
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Date: February 6th, 2010 1:36 PM Author: Sienna curious sandwich If you're on IBR or ICR, you're not necessarily paying principal, nevermind interest, depending on how big your loans are and what you make.
if you're not paying principal and interest, isnt your loan getting compounded as the months go by?
i'm honestly curious about this. |
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Date: February 6th, 2010 1:47 PM Author: blue histrionic range Looks like interest doesn't accumulate on up to 36 payments, other than that it accumulates and gets tacked on to the principal. Basically, Obama says we should all become community organizers and "the taxpayers" will pick up the bill. Socialist POS.
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Interest Payment Benefit
One problem with any program that allows for lower loan payments is that over time, more interest will accumulate, and the loan period may be extended dramatically. The IRB attempts to reduce this problem through its Interest Payment Benefit. This means that if a graduate's monthly IRB payment doesn't cover all the interest owed that month, the government will pay the difference for up to three years.
Moreover, IBR payments are not eternal. After 25 years, if the loan is not paid off, the remainder is forgiven.
Loan Forgiveness Benefit
Graduates who use the IBR plan are eligible for the Public Service Loan Forgiveness Program. This programs allows graduates to cancel any remaining loan payment after 120 payments (which equals 10 years) if they work in qualifying public service jobs.
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Date: February 6th, 2010 1:48 PM Author: Soul-stirring Ebony Old Irish Cottage Site OFS (http://www.autoadmit.com/thread.php?thread_id=1214108&forum_id=2#14033065) |
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Date: February 6th, 2010 1:25 PM Author: Dull office they have a few perks, IBR being the most prominent.
also, they are discharged on death of the borrower.
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Date: February 6th, 2010 1:27 PM Author: Onyx Boyish Dilemma People Who Are Hurt the interest rates are a little troubling. I like the fact that my Citi Loans are currently sitting at 3.25-3.75%. Sure, it'll suck if LIBOR goes up to 6 or so, but I think it balances out well enough. (http://www.autoadmit.com/thread.php?thread_id=1214108&forum_id=2#14032921) |
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Date: February 6th, 2010 1:27 PM Author: Soul-stirring Ebony Old Irish Cottage Site how is IBR hard to get? if you have federal direct or federally backed loans which you have consolidated, you will get IBR (http://www.autoadmit.com/thread.php?thread_id=1214108&forum_id=2#14032923) |
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Date: February 6th, 2010 1:28 PM Author: Dull office OP is a retard sent here from TLS because they were too stupid to operate google for themselves (http://www.autoadmit.com/thread.php?thread_id=1214108&forum_id=2#14032930) |
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Date: February 6th, 2010 1:27 PM Author: Sienna curious sandwich this was the same argument that was pitched to me when i started law school: private loans were better. many of my friends went the private only route and are unemployed now getting raped by sallie mae.
i maxed out on federal and the rest with private loans. with federal, you can do certain payment plans plus the loans do get forgiven after a period of time (albeit a long period of time).
i'm currently paying off my private's aggressively and just making the minimum's on my federals.
i guess there's no right or wrong way. but i'd rather owe uncle sam than sallie mae. |
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Date: February 6th, 2010 2:05 PM Author: Aphrodisiac azn gaping Um, my federal loans are serviced by Sallie Mae... (http://www.autoadmit.com/thread.php?thread_id=1214108&forum_id=2#14033198) |