Is my understanding correct about private tuition lenders: From what they claim, a student can pay back the loan after graduation; even while taking out two or three loans over the period of 3-4 years in order to fully cover all expenses.
Or must the student take only one loan to cover the 3-4 years and pay back that loan only... after graduation?
2007-10-04 10:34:19 · 1 answers · asked by adrift feline 6 in Education & Reference ➔ Financial Aid
You should take out a loan per year, IF needed. Most of the private loans will still have to be certified by your school, so doing year by year is good. But most of all, the interest will accure when the loan is disbursed, so you dont want to take out say $10000 in your freshman year and accure interest for the four or five years in school versus taking a $2500 loan out each year. Remember also that the interest rates are variable and will change, check with each lender for when. Usually quarterly. Check for fees!!! Like origination and repayment. Citibank and Wachovia are two that have NO fees. Remember to borrow a stafford and or a perkins loan FIRST from your school. The private loan should be your LAST choice. Also check with your school for a comparison chart to get a better idea of each private loan
Good luck!
2007-10-04 11:43:56 · answer #1 · answered by John 3 · 1⤊ 0⤋