My daughter may need private student loans for 1 year. Then she will be in graduate school and her federal loan limits will go up. She should be OK then.
Having never looked at private loans before, I looked a bit at Sallie Mae. Is this a good source for private student loans? Any other recommendations?
Any experiences good, bad, or ugly with other lenders?
Your daughter's financial aid office may have suggestions for lenders - you can also look into financial insitutions where either of you have an existing relationship. Sometimes there are benefits to having multiple types of accounts with one bank or credit union.
This might also be a good time to seriously evaluate if the amount of debt your daughter is taking on is appropriate for her future career plans and earning potential. If she has maxed her federal loans after 3 years, she is likely carrying a serious amount of debt, to add another year of private loans + the cost of a master's degree to that may leave her with a serious financial challenge after graduation.
Just be sure this is really the best possible decision, and take into consideration that she may need you to co-sign on that loans, which requires you to accept the responsibillty for that debt if she cannot pay it.
Thank you everyone for the input. My daughter will be a psychiartic nurse practitioner when she completes her education. We live in a rural state, so she plans to do what I did and work with an undereserved population. She will get loan repayment through the National Health Service Corps. It is my understanding that private loans qualify for repayment through that program. I will check.
If she can't do it through the NHSC, she will at the very least working for a nonprofit and make 10 yrs of payments, with the rest forgiven.
I am a family nurse practitioner, and the NHSC paid all my loans. In a rural state, it's not tough to find an appropriate site and get loan repayment.
Again, thank you for the input, and I appreciate the words of caution. I thought long and hard before taking on loans myself, but in the end, it was all paid.
Anyone BUT Sallie Mae!!! Seriously. I could write a book. Unless the interest rate they are offering is WAY less than competitors, run don't walk away from Sallie Mae.
Is she applying under her own name/income or yours? if hers, she may qualify for Perkins Loans, whch are forgive-able for nurses (not sure of all the requirements but I just saw this the other day on my Perkins promissory note so it may be worth looking into).
Good luck! Last piece of unsolicited advice: do not defer the loans after graduation. They like to sell this to you. Next thing you know, your balance has doubled.