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Low-interest private loan?

Valued Member

Low-interest private loan?

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?
4/28/08-EQ 668
5/2/08- EQ 687 TU 670
6/15- EQ 722!!! TU 687
Message 1 of 6
5 REPLIES
Valued Member

Re: Low-interest private loan?

Anyone? I'm really stuck.
4/28/08-EQ 668
5/2/08- EQ 687 TU 670
6/15- EQ 722!!! TU 687
Message 2 of 6
Moderator Emeritus

Re: Low-interest private loan?

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.
 
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 !!!!!!!!!!!

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?



Message 3 of 6
Valued Member

Re: Low-interest private loan?

So, it's worth it? The T-bill should be low enough long enough to pass on the fixed 8.5% federal loan?
4/28/08-EQ 668
5/2/08- EQ 687 TU 670
6/15- EQ 722!!! TU 687
Message 4 of 6
Moderator Emeritus

Re: Low-interest private loan?

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...
 

 

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?



Message 5 of 6
Valued Member

Re: Low-interest private loan?

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.
4/28/08-EQ 668
5/2/08- EQ 687 TU 670
6/15- EQ 722!!! TU 687
Message 6 of 6