what is a finance charge because i asked for $14000 but it says the finance charge is $38000 so i will have a total payment of $52000. is this right because i'm new to all of this.
2007-07-13 13:15:07 · 4 answers · asked by Anonymous in Education & Reference ➔ Financial Aid
it doesnt make sense that the finance charges are more than double the principle borrowed. private loans generally have much higher interest rates than federal stafford loans (can be upwards of 30%). ask the loan provider for more information on what the interest rate is and why it is so much higher than the amount borrowed. try to borrow most of your loans through stafford loans to minimize your interest rate. also, talk with your financial aid office. they should be able to go over your loan information specifically and explain everything to you.
2007-07-13 15:15:30 · answer #1 · answered by ciessa1203 3 · 0⤊ 0⤋
It could be right if a lender is over charging you. Most lenders that know student loans for a long time charge at the prime rate or some other rate that usally is arounf 8-12% that is an estimate because your credit determines the rate you will get. Sallie Mae is a good place to start after all they have been in the industry for over 30 years. But your best bet is to talk to your fiancial aid advisor
2007-07-14 02:44:18 · answer #2 · answered by Boriqua7 2 · 0⤊ 0⤋
Check with your financial aid office. They should have some sort of list that can help guide you. Interest rates are usually determined by your and/or your co-signer's credit history. Also be VERY careful of fees. Some will indicate zero fees up front, but will have repayment or disbursement fees that can be over 10%. Also ONLY borrow what you need.
2007-07-13 22:04:04 · answer #3 · answered by John 3 · 0⤊ 0⤋
That seems really odd to me. Sallie Mae is a great place to get a student loan from. Their website is www.salliemae.com. Good luck!
2007-07-13 20:23:41 · answer #4 · answered by fahlula 3 · 0⤊ 0⤋