Low interest loan I found.

dr650

dr650

Well-Known Member
I've been looking for a loan to finish up my training for about 2 months now and finally found what I consider to be a low interest rate. Here is my situation:

1.) I am enrolled in a university, therefore I can get a student loan rather than a career training loan.

2.) I have a credit worthy co-signer.

I applied for the Sallie Mae Student Signature Loan as well as the Wells Fargo collegiate loan. Both gave my interest rates around 11% with a repayment period of 20 years. Ridiculous in my opinion and I can't afford the monthly payment. The reason my interest rate was so high is that both sallie mae and wells fargo not only look at the co-signer's credit but also the borrowers line of credit. Well I am 20 years old and other than a credit card I have no credit, which unfortunatly equals bad credit.

The loan I finally found and plan on using is a Discover Student loan. They only look at the co-signers line of credit. When determining your interest rate they take the prime rate + an index. (Index is what changes with good or bad credit). The repayment period is 15 years (starting 6 months after I'm done with school) and my interest at the moment is 5%! Now that is a variable rate but so it may, and probably will go up but its better than sallie mae or wells fargo by a long shot.

Just a bit of advice for students with good credit or a credit worthy co-signer. Hope I can be a help.
 
You better check the value that the interest rate can go up to, it may be 5% now, but what if they kick it up to 15% shortly after they hook you.

Sounds like a decent deal, but read and re-read the fineprint.
 
The index (the number they determined from my co-signers credit score) does not change, the prime rate obviously does change. My interest rate is determined by the index + prime rate. My index is just over 1%. In the 70's prime rate was as high as 11% I believe so I understand my interest rate can go up, I'm only saying this is the best loan that I found, not that its great in itself.
 
Right on man, If this is the best option go on and get that training! Just with the econ and what not.. hate to see someone screw themselves... I know I am being a lot more cautious with figuring out how to pay for more ratings...
 
All I know is that I have never known a "variable" rate to go down...unless it's a savings rate! :mad:

Are you wanting to use this for flight training? If so, tread lightly and do your research...LOTS of info and opinions here on JC.

One other thought....as recent as Sept of '07, the prime rate was 8.25%...and I DO TRULY believe that it will be in excess of 10% within 5 years.
 
will keep researching, if you actually know of any thread that talks about loan interest rates less than you see here or if your financing your flight training a different way let me know. Seems like loans are mentioned in about 80% of the post, so the search is kind of tough to refine.
 
d_mckerrow06 said:
will keep researching, if you actually know of any thread that talks about loan interest rates less than you see here or if your financing your flight training a different way let me know. Seems like loans are mentioned in about 80% of the post, so the search is kind of tough to refine.
Click to expand...


That is one of the bad things...there is A LOT of info, so you just have to commit to the time to dig through it all. Perhaps search for "threads" and not "posts"....that might widdle it down some for you.
 
I have a variable rate from Key Bank. Started at 6.25% and is now 9%. And like said before, it never goes down, only up. I hate this loan. Wish it was alive, so I could stab it and choke it and kill it until it is dead.

No really though, do your homework. Make sure your cosigner is COMPLETELY willing to pay this loan back when you can't make payments. Co-signing is more than just helping you get the lower rate. When you get to the airlines and your commutting to sit reserve in a crashpad somewhere and your bleeding what little cash the airline is paying you, that loan is going to be the biggest stress factor in your life. You are going to hate it. Believe me. It will wear on you. So make sure your co-signer is fully willing to accept those responsibilities. My cosigner was bitching and complaining for the longest time while I couldn't afford the payment hikes with the higher interest rate.

My best advice, is find a relative that would be willing to take a home equity loan or consolidate this loan into a home equity loan. That's going to be your lowest rate, lowest payment. But again, if you can't make the payments, make sure the co-signer can.
 
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