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iwillbeknown
12-17-2010, 11:04 AM
Does any one have huge loan amounts form their undergrad or graduate school while applying to or going to SABA? Is this going to be a huge problem? we are talking about $50k here. Please share. Thanks.

INRmorethan4
12-17-2010, 02:32 PM
Does any one have huge loan amounts form their undergrad or graduate school while applying to or going to SABA? Is this going to be a huge problem? we are talking about $50k here. Please share. Thanks.

Lifes a gamble...Borrow all you can :eyebrows:

maladdy85
12-17-2010, 07:56 PM
yes. I am from the US. Went to private college. My debt sits at 180K right now (WHY?! why did I not go to state school?!). Paying for Saba out of pocket in an attempt to not make that number scarier. If you need info on deferring payments on private undergrad loans, pm me. I spent two months arguing with my lenders but was able to get the loans in school deferred despite the fact that Saba is not title 4. Good luck!

seattle
12-17-2010, 09:33 PM
yes. I am from the US. Went to private college. My debt sits at 180K right now (WHY?! why did I not go to state school?!). Paying for Saba out of pocket in an attempt to not make that number scarier. If you need info on deferring payments on private undergrad loans, pm me. I spent two months arguing with my lenders but was able to get the loans in school deferred despite the fact that Saba is not title 4. Good luck!

I have posted on another thread last year the volatile nature of the Ed-Invest loan that Saba currently provides. As you are aware, as currently Saba is still not a Title IV institution (meaning no U.S. federal loans available) renders a prospective to seek the Ed-Invest loan. The exception to this being as you stated taking the entire amount out of personal savings. In my opinion, if you do have the personal savings to pay for Saba then by all means avoid Ed-Invest. I will not provide the details of this loan, but the highlight is that it is a variable interest rate in payback and can vary up to an extremely high interest rate (directly ask this question to Ed-Invest and they will confirm). The latter is not something they will readily tell you unless you specifically ask them!

If you are contemplating attending a non-Title IV Caribbean school with a $180K debt already, it is very unwise in my opinion to sign up for the Ed-Invest loan. Without knowing the details of your other loans, I am guessing the addition of this loan, which without interest will run you around $100K for 4 years could potentially set one up for bankruptcy.

Either strategy will have a risk component attached to it however the question here in my mind is which is the less risky strategy. Correct? So, if you do have the personal finances and you feel after heavily researching various schools that Saba is the way to go then even if you fail out of the program after one semester (let us just assume to be safe), then you have lost roughly $12,000 USD and that is the end of the story. However, it is much worse to fail out and have the Ed-Invest loan to pay back, regardless of how much you have borrowed.

One final point have you researched other schools in the Caribbean that do offer federal loans, namely SGU, AUC, and Ross? They are more expensive compared to Saba, yet they offer the federal loans (I believe if things have not changed since last year).

maladdy85
12-18-2010, 01:34 PM
I am the one with the 180K not the individual posting above. He/she has 50K (which is still no small piece of change). I am paying out of pocket which I HIGHLY recommend to this individual if it is a possibility for him/her. If not, IMO, I would do Davenport MBA and get the Stafford loans over an Ed Invest loan. Variable interest is how one ends up with 180K in loans.

seattle
12-18-2010, 02:12 PM
I am the one with the 180K not the individual posting above. He/she has 50K (which is still no small piece of change). I am paying out of pocket which I HIGHLY recommend to this individual if it is a possibility for him/her. If not, IMO, I would do Davenport MBA and get the Stafford loans over an Ed Invest loan. Variable interest is how one ends up with 180K in loans.

Yes, I agree it is wise to avoid the Ed-Invest loan terms if at all possible. The terms are such that the profit margin for the lender is enormous compared to the difficulty the borrower may have in paying back this loan (if taken out to fund most or all of Saba education).

Godson
12-19-2010, 12:34 PM
Fortunately I got out of undergrad without any loans but agree that edinvest is totally not a good option.







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