Private Student Loan Interest Rates...

IslandFlyer

Well-Known Member
So after completing an application for a private student loan to finish my training, I wasn't extremely happy with the outcome of the interest rates.

I did have my father co-sign for me since I don't have excellent (it's not bad but it's not flawless) credit. I was wondering if there are any others out there that are looking at student loans right now and what kind of rates they were being offered. I know getting loans right now may be tough for some, but I would think having a co-signer with near flawless credit history I would have a better rate than this.

So what I requested is a 36k loan for 20 years, deferred payments for 6 months. I will have the loan paid down to approx 16k within those 6 months because I will receive VA reimbursement. It would be 8% interest plus the monthly LIBOR index. I have researched it a little (LIBOR) but am by far a financial guru.

With the LIBOR being 3.375% currently it seems like a lot. I was just wondering what kind of rates others are getting right now, or what kind or rates you got, and if this is a ridiculous interest rate.

Any advice is welcomed here. :)
 

Matt13C

Well-Known Member
Sounds about right.

I applied for the AOPA flight loan through Bank of America because my school is not eligible for Sallie Mae loans.

15k over I think it was 10 years at a fixed rate of 18%. I have perfect credit, never late on any payment. My only mark was a bit of credit card debt from my private.

The way the lady explained it to me is they are being very cautious when giving out unsecured loans, a loan not backed by something tangible.

I personally chose to not do it.

Good luck.
 

killbilly

Vocals, Lyrics, Triangle, Washboard, Kittens
15k over I think it was 10 years at a fixed rate of 18%. I have perfect credit, never late on any payment. My only mark was a bit of credit card debt from my private.


Good luck.
:panic::panic::panic::panic::panic:

Jesus H. Christ!

That's over seventeen grand in interest over the life of the loan!

At least, if I read the amortization table correctly....

Good call on not taking that loan. Owie...
 

Matt13C

Well-Known Member
:panic::panic::panic::panic::panic:

Jesus H. Christ!

That's over seventeen grand in interest over the life of the loan!

At least, if I read the amortization table correctly....

Good call on not taking that loan. Owie...

That was pretty much my reaction when she told me the rate. Was one of the easiest decisions I have ever made ha.
 
I got a 10k over 15 years at 3% over prime.. I thought That was good considering I was 20 with no credit history other than using my wells fargo credit card a few times and paying it off immediately.
 

IslandFlyer

Well-Known Member
Sounds about right.

I applied for the AOPA flight loan through Bank of America because my school is not eligible for Sallie Mae loans.

15k over I think it was 10 years at a fixed rate of 18%. I have perfect credit, never late on any payment. My only mark was a bit of credit card debt from my private.

The way the lady explained it to me is they are being very cautious when giving out unsecured loans, a loan not backed by something tangible.

I personally chose to not do it.

Good luck.
I would definately not take an 18% fixed rate on 10k. Good call on walking away. I'm thinking about walking away from my offer and it's half of what they offered you.

Anyone else with recent loans wanna chime in?
 
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