Student Loans

[rosie_plus_one]

My financial aid is about $1,200 short of paying my tuition. I know if I were a true Dave Ramsey devotee, I would not think about taking out a student loan.

However, I am thinking about it! Where should I go?

[CityChic]

I like Dave Ramsey but I think student loans are different so I would take one.

I would check with your local banker if you have a good relationship or see if you can take out the money on a no interest credit card since the amount is so small. I would use your school's lending program as a last resort since they tend to have the highest rates.

[MsElle07]

You need to fill out the FAFSA, if you haven't already. I would absolutely go for a government funded student loan over a private lender. No credit checks, for one thing. They're also far, far more flexible about repayment -- you can call and say you're having financial difficulty, and they'll defer your payments (or put them in forbearance) without blemishing your credit. They also don't report to credit bureaus until a payment is 60 days late, so it doesn't spell doom for your credit if you're a couple of days late. You should call the financial aid office and see what kind of loans you qualify for.

[newbad]

Go the stafford loan route first, then Perkins. Actually if you are going into nursing or teaching, do the Perkins first because you can get them "forgiven" once employed by the government. Avoid the private student loans if possible. Those are what are killing me, post-graduation.

Also go to the financial aid person, talk to them in person. I found that they often had "extra" money to allocate. If you "get to know them", then they will think of you first.

[Knittin' in the Shade]

Originally Posted by CityChic

I would use your school's lending program as a last resort since they tend to have the highest rates.

Really? Is that a recent development? I know when I went to college (staring in '95) the best rates by far were the federal loans through my school - my rate was (still is, since I'm still paying, LOL!) 3.2% I did have to file the FAFSA and all that, but it was worht it for the much lower rates.

[Glamgurl36]

my husband did the stafford loan thing..it worked out pretty way...he got a little over what you need

[Emmeline II]

Originally Posted by Knittin' in the Shade

Really? Is that a recent development? I know when I went to college (staring in '95) the best rates by far were the federal loans through my school - my rate was (still is, since I'm still paying, LOL!) 3.2% I did have to file the FAFSA and all that, but it was worht it for the much lower rates.

Not federal loans through the school, but loans from the school itself.

[Stayseeliz]

I wouldn't hesitate to do a student loan if you need it. Just don't get sucked into borrowing more than you need to pay your tuition. I borrowed extra to pay living expenses and I owe about twice what I would have owed if I'd just taken out the extra I need to pay tuition.

I still owe less than alot of people since I went to a state school and only had to borrow on the last two years but I still hate that I took that extra money out!

[CityChic]

Originally Posted by i'mmykid'$mom

Not federal loans through the school, but loans from the school itself.

Yes, this is what I was referring too. Sorry, that was a little unclear.

[rosie_plus_one]

I did file my FAFSA, and was given some grant money, and then an option for a subsidized student loan and then an unsubsidized student loan. Combined, it's about $1000 short.

I'll talk to the Financial Aid office at the school and see if they can help me out at all.

Thanks

[papschmitty]

I agree with other posters. Be sure to shop around and don't borrow any more than you absolutely have to. Student loans, if used wisely, are an investment in your future.

[krisnic]

I agree with most of what Dave says, but school is just too important for me to stress myself out on. Without school I won't be able to do much, so in my opinion, loans are totally worth it. I go through Sallie Mae. I don't know if you are at a community college, 4 year or trade school, but they offer different types. I currently have the Signature loan, and used a community college loan for one semester during my CC days. Interest rates suck no matter where you go I have found - which is ridiculous, and Sallie Mae is really easy to use.