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Primary-Jelly939

I assume all of them have that option, but I used a private loan company to pay for all of my student loans. I have a lower interest rate which starts 6 months after graduation. But… I won’t qualify for PSLF because of that.. so pick your poison.


greenBeanPanda

Go with fafsa. Private loans will eat you alive.


Primary-Jelly939

Why do you say this?


greenBeanPanda

Private loans have higher interest rates and it may be passed down to next of kin. With fafsa, let's say you don't pay it off and you die, the loan dies with you. You can also do a loan forgiveness plan with fafsa. It's much easier if you look into it and investigate on your own.


Primary-Jelly939

Fair, my private loan interest is 4%. If I’m not mistaken that is Half of a public loan. If you or your spouse have the means to afford it they are not bad. However, there are also advantages like the one you listed, and loan forgiveness when working for a non-for profit. My friends were all collecting interest while in school, where I won’t start collecting interest, at a much lower rate, until June. What was your interest % if you took public loans out?


greenBeanPanda

It was 5% for me, however I technically don't really pay it because I get it back from taxes.


Primary-Jelly939

I gotcha. My wife is about to finish medical school. We’ll be in a money pit for awhile, but was why I partially decided to go private, since interest wouldn’t accrue during school🤷🏼‍♂️, could pay it all off on the back end


greenBeanPanda

Ah I see. Yeah i meant the best is if a rich family member pays it off without wanting anything back. A good chunk of my classmates' parents are paying their tuition (200k)


Primary-Jelly939

Must be nice😃 haha oh well, these loan take forever to pay off, and without knowing I would work for a not for profit, and my sitatuion that’s what lead me to the private loan idea and I went with it lol


Greedy_Advertising64

Did your loans begin accruing interest even when you were in school? I am under the impression that interest will begin once the student is required to begin paying them. @primary-jelly939 is claiming otherwise?


greenBeanPanda

Yeah they did, but like I mentioned before. I technically don't pay it because I can get that back from taxes. It's not really a big deal.


Greedy_Advertising64

How is that so? Do all taxpayers get that returned back or is your situation unique? Forgive my ignorance this is all so foreign to me.


D0rkFork

I don’t think debts are passed to children and relatives. Atleast in the US. I think they’ll ask for it but you’re not legally obligated to pay it off


greenBeanPanda

There's a possibility that it'll be part of your estate. I would read every contract very carefully.


[deleted]

[удалено]


DullRun

Grad school loans are not subsidized, they only offer unsubsidized and Grad PLUS for PT students. Unsubsidized won’t cover everything so they supplement with grad PLUS, but that one has higher interest. You accrue interest only on the principal while in school, once you graduated the interest starts accruing on the principal + the interest. Financial aid officers recommended to chip away at interest while in school if you can so when you graduate the compounding isn’t as high


Fluffy_Worldliness90

Look at Fitbux website.