Taking stafford loans, and there are options for lenders. Each lender has a different set of incentives for on-time payments. I'm thinking that rate reductions are better than capital reductions. It *looks* like CFNC (CFI?) has the best plan, does anyone have an opinion on this?

6/26/2007 11:35:19 AM

it depends what you want

i think capital reductions are better than rate reductions because i plan to continue living like a broke ass student and pay off my loans quickly

6/26/2007 2:49:02 PM

My thought was that if rate reductions can drop rates near what I can make on investments, it won't be so painful to pay them off slowly. We're borrowing a lot. My rough math shows that 2.5% rate reduction would save us >5 grand in 10 years vs. a 3% capital reduction. And with a payment over $600/month, it'll be tough to pay it down faster.

good point though, thanks for bringing it up because it made me do the math.

6/26/2007 3:47:25 PM

more rough math makes it look like 4.3% interest on 100% of capital catches up to 6.8% interest on 97% of capital in three years.

6/26/2007 4:30:29 PM

Quote :

"it depends what you want "

Our Financial Aid website only provides a few potential lenders which our students use more often than other lenders. However, you are welcome to research and choose any lender that you wish. There are literally hundreds, if not more than a thousand Stafford lenders throughout the country.

If you would like to research more on choosing a lender that you prefer better for yourself, here is the Federal Government's website (which is short and sweet): https://studentaid2.ed.gov/getmoney/pay_for_college/loans_evaluate.html

And here is the FinAid website which contains a lot of information: http://www.finaid.org/loans/choosing.phtml Just be aware that the gentleman who runs FinAid (who was once in the higher education financial aid business) has entered into a partnership with Citibank, so you'll see a lot of pushing towards them on this site. Just keep in mind you do not have to choose them unless you want.

6/28/2007 9:21:59 PM

mom and dad at 0%

6/29/2007 4:14:26 AM