Student Loan Help- much appreciated!

[kaliraksha]

You guys, I am so lost. I’m going into my last 1 to 1.5 years of school (a little behind here, heh) and I cannot figure out how people get loans at such low interest rates. I’ve always paid my school tuition and living expenses myself and until recently I was doing just fine. Recently, I had some room mate issues that left me stuck with about 3,000 dollars in fees.
However, I’ve heard people (post-graduate) over talking about how they are waiting to pay their student loans because they are 2-3% interest rates. I applied for a private loan and the interest rate is almost 11%. I’m really looking at getting a decent interest rate loan because my last year is all specific harder classes and I don’t want to work more than the 32 hours a week I work now.
One major thing to keep in mind is my parents are willing to help, but their credit isn’t so hot. My credit is mediocre, I have one blemish that I was advised to not take off because it makes my credit younger- however it’s been fixed for a few years and will drop off in 2011. For the record, I do apply and receive scholarships otherwise there is no way I could afford paying for school. FAFSA doesn’t cover it all =(
Can anyone walk me through the process or give me suggestion on where to find information on getting these elusive 3% loans?

 

[Beauty Mark]

Those loans are ran by the gov't/your school. I'm not quite sure why your aid package didn't include like Stafford loan or the Perkins loan.

You should really talk to your financial aid office. They are your best friends when it comes to school financial stuff.

I don't know what your fin. situation is, but you can always plea for more money if finances are tight and you are struggling to make ends meet.

 

[giz2000]

Why did you apply for a private student loan instead of going through the gov't (Sallie Mae, etc.) Your school's financial aid office can help (and if you get more loans, you should consolidate them so your interest rate can go down...or do like I do...go to school forever! LOL!)

 

[kaliraksha]

Sallie Mae is a private student loan I believe. I applied for a private student loan from bank that is through TERI.org.

Yeah I should just suck it up and go to my financial aid office. I applied independent because my parents don't help me with school- they pay for my cell phone bill and healthy insurance monthly- everything else is me. Alright, I will make an appointment tomorrow.

Thanks you two =)

 

[franimal]

Quote:

Originally Posted by giz2000 Why did you apply for a private student loan instead of going through the gov't (Sallie Mae, etc.) Your school's financial aid office can help (and if you get more loans, you should consolidate them so your interest rate can go down...or do like I do...go to school forever! LOL!)

a new law passed last year so you cant consolidate loans anymore while youre still in school if they were taken out after july(?) last year. atleast thats how it is for me.... maybe its only in california. Yeah i would recommend talking to the financial aid office, but if you've already filled out a fafsa, that pretty much determines the best loans and grants ur eligible for. They might be able to secure a better loan for you tho, so you might as well ask.

 

[giz2000]

Sallie Mae manages my loans, but the lender is the US Department of Education (they're Federal Stafford Loans). My interest rate is 6%. I haven't heard about 2-3% loans...Definitely go to your financial aid office and see what they can do for you....and I need to look into that consolidation thing...

Here's some info on loans for you:

http://www.ed.gov/offices/OSFAP/DirectLoan/faq.html