Student Loans

[talulah]

2 questions. First, my state has a med loan that is 2% above the 90-day Tbill rate and automatic residency deferment. Am I kidding myself that this will be ebtter than the 8.5% GRadPlus with qestionable deferment?

Second, does private, deferred student loan debt affect your credit any differently than federal, deferred loans?

[talulah]

Anyone? I'm really stuck.

[Timothy]

The 90 day Tbill is really low (under 2%) and will stay thay way until the fed starts raising rates.  I'd be all over a sub 4% loan.

http://www.marketvector.com/interest-rate/90-day-t-bill.htm

IMO- It is difficult to get a rate better than 8.5 on a private student loan- 

Student loans are student loans in the eyes of FICO and they are all treated the same.  Unless you are LATE or the balance is higher than the original balance- and you will take a point hit.

Good luck !!!!!!!!!!!

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talulah wrote:

2 questions. First, my state has a med loan that is 2% above the 90-day Tbill rate and automatic residency deferment. Am I kidding myself that this will be ebtter than the 8.5% GRadPlus with qestionable deferment?

Second, does private, deferred student loan debt affect your credit any differently than federal, deferred loans?

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[talulah]

So, it's worth it? The T-bill should be low enough long enough to pass on the fixed 8.5% federal loan?

[Timothy]

Your going to have to bust out a spreadsheet and a loan calculator to figure out what the best deal is for you-

Given the history on the Tbill -  I would take a SL based on Tbill plus 2. http://www.nchelp.org/elibrary/ReferenceMaterials/RateInformation/History%20of%20T-Bill%20and%20Comm...

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talulah wrote:

So, it's worth it? The T-bill should be low enough long enough to pass on the fixed 8.5% federal loan?

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[talulah]

Well, the average t-bill since 2001 seems to be around 3%, rounding up, so about 5% during school, and 5.25% in residency, with the GRadplus at 8.5% during school, and 8.25% in residency.. That means overall, maybe an $18K in savings.  Well, that seems worth it. Thanks!!! I wish I'd done it before. Would have saved another $7K, but great anyway! That's about a $300/month difference that I can put towards my husbands higher interest loans, and a total of $17K less interest paid after I'm all set and done and paid off.