Thread: Loans

I just got my acceptance letter today for the Spring 2005 semester.
I am applying for maximum loans. Is anyone applying to any outside loans than the ones provided by the school? And are there any tax-free loans that anyone knows about? I am already worrying

posted twice....sorry.

Originally Posted by Solnishko21

I just got my acceptance letter today for the Spring 2005 semester.
I am applying for maximum loans. Is anyone applying to any outside loans than the ones provided by the school? And are there any tax-free loans that anyone knows about? I am already worrying

Congratulations on getting accepted! First, all the loans are tax-free. Proceeds disbursed for a loan are not considered "taxable income" in the US. And yes, there are a few other loan options you can look into. Key Medachiever, Teri (www.iefc.com), and maybe Sallie Mae. If you do a search on here under "loans", you should be able to retrieve relevant threads...

Just a word of warning. Be prepared to deal with your financial "counselor". I applied for a loan outside of the ones provided by the school. So 2 weeks after submitting the paperwork, I call up the financial aid office to determine if the loans had been certified. Guess what: No. Linda B, the supposed financial "counselor", literally YELLS at me for going with someone other than Ed-Invest for alternative loans. THey've just been sitting on my paperwork because they now need a written statement from me stating why I'm going with an outside lender. Nevermind the fact that I would be paying a "finance charge" of 7 to 9% for using Ed-invest. Nevermind the fact that Ed-Invest's interest rates are based on your credit score at the time you apply for the loan (and in my case, would be higher). I was told that if your FICO score is 650 to 679, you pay a 9% finance charge right out; if your FICO score is 680 to 749, you pay 7%. I dont know about you, but as far as I am concerned, the prospect of losing 7 to 9 cents on the dollar when there are alternative options is simply unacceptable.

And the financial counselor gave me NO indication that there was a finance charge associated with the Ed-Invest loans. If I hadnt done comparison shopping and relied solely on her "advice", I probably would have gone with Ed-Invest. In fact, the counselor did nothing more than offer conclusory statements: "Go with Ed-Invest. It's your best option." Why? Well, nevermind that. Nevermind that she has no idea or pretends to have no idea of what else is out there. But this much she "knows" that you should go with Ed-Invest. Even that wouldnt be too bad if she were polite about it; but no, the belligerent huckster treats me like a seven year old.

What infuriates me however is the fact that SGU's financial "counselors" use the cloak of neutrality to "advise" students, as if they were acting in our best interests, when they are doing nothing more than hawking a loan product to fatten their wallets at our expense. Bottomline: do your homework. Do your research. And be prepared to jump thru a few more hurdles for getting your paperwork thru. SGU apparently is a fine institution when it comes to putting out doctors, but they are what they are: a for-profit institution that is not above the sleazy tactics of a used car-salesman when it comes to money.

So what you are saying is I should go with outside loans? I have tried to contact my financial councelor, but every time they try to connect me, no one picks up the phone. I am soo lost, and the classes start in a month.

Originally Posted by Solnishko21

So what you are saying is I should go with outside loans?

Not quite. If you want a lender with better terms (interest rates, origination fees, guarantee fees, term of payment, etc.) and you're willing to put up with a little heat from SGU, then go with someone other than Ed-Invest. But if you're content with less favorable terms for the sake of convenience, then Ed-Invest is a great choice. I have little regard for convenience and immense regard for the bottomline, so I made my choice based on that...

Also, I should point out that the school has certified my loans with the outside lenders. When I checked back and spoke with Linda, she was courteous and nice the second time around. A complete turnaround. It was as if I'd spoken to Mr. Hyde the previous week, and Dr. Jekyll this week.

I think Ed-invest is owned by our chancellor. That’s why the school wants us to go with them. The chancellor not only wants our money, but he wants it with intrest too. LOL

Originally Posted by canman

I think Ed-invest is owned by our chancellor. That’s why the school wants us to go with them. The chancellor not only wants our money, but he wants it with intrest too. LOL

Doesnt surprise me one bit. Though I really wonder if the school's financial aid office is allowed to "recommend" or use other methods of persuasion to direct students to one lender over another. I think non-profit schools may be unable to do what SGU is doing; for-profit schools may play by different rules. The whole situation is somewhat irksome and a little shady, but what can u do?

Key bank - no origination fee..altho i just got DENIEDDDDDDDD ...so i might have to go w/ ED ..

If your problems arent serious, you should consider appealing it. I was initially denied and then did an appeal. Talk to the Key Bank customer service rep, they are usually helpful.

Good Luck!

What alternative loans do you recommend looking into?
Thanks!