Interest Rates on Loans

AA34

AA34

Well-Known Member
Does anyone know what types of interest rates lenders are extending to ATP students these days? Are they fixed, or floating? I'm assuming the interest rate improves with a co-signer?
 
Not sure right now but generally those loans have tracked pretty well parallel with standard unsecured-debt personal loans.

Which means, "high." Collateral will improve the rate but I don't know how much.
 
I know the rates on my current loans from Citibank are between 3.5 and 4.25%. They're variable though and at one point they were as high as 10.25%. Unfortunately the federal loans are locked at 6.8%.
 
started out with wachovia at 8.6% and now it is with wells fargo at about 3.2%. have been paying since 2007 each month of about $500-$1000.
 
b7474ever said:
started out with wachovia at 8.6% and now it is with wells fargo at about 3.2%. have been paying since 2007 each month of about $500-$1000.
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Is the 3.2% at Wells a fixed rate?

I haven't completely committed to ATP yet so am looking at financing options. I didn't want to HAVE to go through Salle Mae. So am curious how to get the financing elsewhere.
 
What's wrong with Sallie Mae? I got a 3.25 interest rate with them, although my parents did co-sign with me. That is like half the interest rate of my federal loans.
 
AA34 said:
Is the 3.2% at Wells a fixed rate?

I haven't completely committed to ATP yet so am looking at financing options. I didn't want to HAVE to go through Salle Mae. So am curious how to get the financing elsewhere.
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....hmm...i started out with Wachovia in 2007 and later it was bought out by wells fargo. i had a co-signer and began my repayment the same month i started training. i didnt have to start until i FINISHED my training. And also, i paid more than what my minimum was each month. (so i guess that helped bring my interest rate down)

IMHO...I am very happy with the hours, certificates/ratings, and experience i had with ATP. But if i had to start my training over again i would rather do it at a FBO and save lots money
 
bronco21016 said:
I know the rates on my current loans from Citibank are between 3.5 and 4.25%. They're variable though and at one point they were as high as 10.25%. Unfortunately the federal loans are locked at 6.8%.
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At that point, you should be deferring your citi loans to focus on paying off the federal loans.
 
NickH said:
At that point, you should be deferring your citi loans to focus on paying off the federal loans.
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Not a chance.

1) Federal loans can be deferred for any number of reasons, in some cases without interest being added to the principle (capitalized). Private loans *might* be deferred, but interest will capitalize.
2) Private loans carry variable interest rates. Today, rates are low. But at some point those private rates will tick up and you'll be paying more. [Think sub-prime mortage, but with no house keys to give back and no bankruptcy protection. They can come after you until you're 6ft under]

It's far better to pay down/off the private loans first from the standpoint of who's better to deal with when my job comes to an end.
 
There's always a risk.. But capitalizing 4% in order to pay off a 6% loan is a good idea based on the numbers alone.
 
I'd rather:
1) Defer the gov loans
2) Pay the interest on the loans that would capitalize
3) Take the difference and plow it and everything else I could into the private loans.

When you add in which loan has more favorable terms, for my money, I'll pay off the private lenders first.
 
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