Loan Help

DeadlyGambit · #1 07-30-2007, 09:44 PM

My girlfriend wants to take out a private student loan to pay off her car. I wanna help her out, but I don't know where to look. She obviously wants one with an interest rate thats lower than the rate she pays now on her car. I'm pretty sure she pays around 8% right now. Is it possible to find a student loan with that low of an interest rate? Who are some of the best providers of private student loans? Oh yeah, and getting a student loan to pay off a car is legit, right? I mean the car could be considered an educational expense, since she uses it to commute to school everyday which is about an hour away. Any help would be greatly appreciated.

-DG

FlyWf · #2 07-30-2007, 09:56 PM

It will be difficult to get a significantly lower interest rate than 8% on a private loan, this likely isn't worth the effort.

DeadlyGambit · #3 07-30-2007, 10:02 PM

It doesn't have to be significantly lower than 8. The only reason she wants to do this is because her job is really hindering her ability to focus on school. Having to make a car payment every month during school is kinda stressful for her. So its not really about the rate, it'd be nice to get it as low as possible tho.

XXXNoahXXX · #4 07-30-2007, 11:04 PM

Can we get some more details about her current expenses, school, financial aid, etc.? (and by some, i mean a lot)

is she already maxing out gov't loans?

undergrad or grad?

please give more details....

DeadlyGambit · #5 07-31-2007, 12:43 PM

Details on the way...

She's at work right now so I will talk to her when she gets home and get back to you.

-DG

DeadlyGambit · #6 07-31-2007, 05:25 PM

Her only real expense is her car. She currently lives with her parents, so no rent or anything like that. She's an undergrad, and the only gov't loan she gets is the stafford (thats gov't, right?) which is about $2600 per year. The car payment is around $300/month, and then theres insurance.
Oh yeah, she has very good credit but I'm pretty sure her mom is going to co-sign.

This help any?

-DG

FlyWf · #7 07-31-2007, 10:17 PM

The "good" student loans(federally administered) will only allow you up the cost of attendance as determined by the school.

Private student loans are just unsecured loans to college students.

XXXNoahXXX · #8 08-01-2007, 09:14 AM

Probably should have just said this initially, but just tell her to go to her financial aid office and lay it out.

There aren't any super secret deferred loans that we can tell you about, and it seems as though she might have more Stafford loans available to her, or one of the other random ones. Was she work study qualified? I know at my school, it was one signature to switch that to a loan and I was still able to work, the only difference was my paycheck said "Campus Employment" instead of "Work Study"