Interest Rate Negotiation for Private Student Loans

[Anonymous]

Hi, I'm new to the Fico forums.. 

I just graduated from college with almost $30,000 in Stafford loans. I am hoping to go to culinary school this summer but I must take out $30,000 in private loans plus an additional $9,500 in Stafford loans. I was approved by Citi but the interest rate they quoted me at was Prime (3.25%) plus 7% also, a 5% loan fee. When I look at a student loan calculator all my loans totalled would cost me nearly $900 a month to pay off in 10 years, way too much! 

I am wondering if there is any way I can negotiate a lower interest rate and fee with Citi before I accept the loan. I have applied with a co-signer already. If I can't talk them down now will my rates get any lower over time? Or will they only get higher as the Prime rate increases in coming years? I really appreciate any help. This is the deciding factor on whether I continue my education. Thanks!

05/23/09 TU: 709

[Anonymous]

The answer to your 1st question is probably not. 

If I knew the answer to the 2nd, I'd be a very rich man.

Good luck! 

[EMB170guy]

I used a Sallie Mae private loan for my private career training loan (aviation). While I have benefited by the falling rates the last few year I will tell you that there has seemed to be almost nothing negotiable about these loans, cmopared to the fed loans. Im not complaining.. it IS a private loan after all..If you really want to go to your program.. do it. Take the private loan.. just, seriously, make every payment on time, and each month please pay just 10 or 20 or 30  bucks onto the principle. Trust me u think its hard to make the extra payment.. years later you wnot even miss that extra money you sent them.

Good luck with your career goal! Go for it.