Ken asks…
are private student loans a viable supplement to federal loans and scholarships?
I see alot of Private Student Loan companies being advertised on TV these days. I was wondering if 1) these companies are legit and 2) if this is a good idea for supplement funding when Federal loans and scholarships don’t cover everything.
admin answers:
First, always make sure to exhaust scholarship and grant options first.
Secondly, I would not get involved with the companies that send you unsolicited offers in the mail. The ones that are legit you will recognize, because they will probably be through a well-known and reputable bank or financial institution.
Most programs that administer Federal loans, like Sallie Mae, also have a private loan division. This is good because when it is time for repayment, you can get the same grace period for your federal loan that you receive with your Federal loans, and consolidation will also be easier.
I recommend going to Sallie Mae’s website www.salliemae.com , or contacting one of their customer service representatives with any questions. Your school’s financial aid office is also an excellent source of information (or your guidance counselor, if you are still in high school). Good luck!
George asks…
I need some legal advice. Does anyone out there know if you can file bankruptsy on private student loans?
I know that you cannot on federal loans but these were private loans and did not have to be approved by the college I was attending. I really do not want to do this but I am really financially strapped right now. Would appreciate any advice.
admin answers:
No, you can’t file on private student loans either. Sorry.
Betty asks…
Are Private Student Loans exempt from bankruptcy?
I’ve read that student loans cannot be disposed of during a bankruptcy. I’m sure this is true for federal/state/school loans, but what about private student loans that did not need to be confirmed by the college? (In other words, did not confirm “financial need” with the school).
admin answers:
Yes u have to pay them no matter want!
Paul asks…
Liklihood of chapter 7 bankruptcy for students with private student loans?
I’m not asking for your opinion on wether or not private student loans should be allowed to be written off in chapter 7 bankruptcy.
I’m asking what is the liklihood that it will be an amendment anytime soon?
I’m curious because the democrats voted for that very amendment in Februrary 2008. Republicans voted against it overwhelmingly and were the majority so it was removed.
admin answers:
No they should not be allowed to be written off.
I would have tried to become a doctor then…because I would have just taken out massive loans and then declared bankruptcy.
I can’t believe it was even considered.
Laura asks…
Why use up government student loans before private?
Why does everyone say to use up all government-funded student loans before getting private ones?
I can get a much better interest rate with NO origination fees with Wachovia, a private loan; while the government loan offered to me has 4% origination fees, higher interest rate, and is unsubsidized.
The only thing better about the government loan is it is fixed rate. Is that really that important? Do variable rates with private loans usually increase alot? It depends the going rate at the time in the economy right?
admin answers:
The usual is to get the gov’t loans first, b/c of the lower interest rate and you have like 6 months after graduation to pay back, and you can pay the interest rate whilew in school of after you grad.
However, sometimes the private loans may seem more tempting and better deals may be out there. You knwo what freaks me out about the variable rates..? Just like it happened to people with their homes… At first they were given an attractive IR then it went way up… They coulnd’t pay any more and lost their homes…thats scary….
You should pick the loan that BEST suits YOUR needs…think long term too…
Maria asks…
Taking out private student loans – borrow everything at once?
I need about $8000 of private student loans per year, for about two years. Do you guys think it’s recommended that I take out the whole amount of $16,000 right away or apply separately each year? Which gives me the greater chance of getting the whole amount, ultimately?
Any feedback would be sooo appreciated!! Thanks!!
admin answers:
Your chances of getting a private student loan ultimately relies on your cosigners credit and income (and willingness to sign of course). When you borrow for college, you borrow for a years expenses at a time.. So you would need to ask for 8000 this year and 8000 next year. Be sure your cosigner is willing to do this for you for both years. This is the best way to insure you’ll get the loan.
John asks…
Private Student Loans – What Happens if I Die?
I have about $100k in private student loans with Sallie Mae, Chase Student and Nelnet. What happens if I die? Are my relatives responsible for this debt?
No co-signer, just issued to me
admin answers:
Whoever your cosigner was for that particular loan would be responsible for paying it back if you were to die. This is only for your private student loans. Federal loans would be discharged upon your death. (Federal loans require no cosigner).
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