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View Full Version : Loan comparison between SABA's edinvest and SGU's Federal/G+



fatwalletuab
10-10-2012, 03:05 PM
I just entered some numbers in and created this comparison using an online template and the information I gathered from vmd website. I know it not meant to be very accurate but it does provide some basic understanding on the loan situations. I guess the conclusion I can draw is, yes, we eventually pay the same amount of interest although the tuition is much lower. I use 20 years as the time frame to pay off the loan, I saw somewhere is between 20~30 years as the average to pay off the loan, maybe alot faster if you are in the competitive specialty :lol:
vmd doesn't allow me to attach a spreadsheet file, so here's the link to the google doc spreadsheet
https://docs.google.com/spreadsheet/ccc?key=0Au6W09zu7kqxdGI0VHVfRktZLTlLRk5nb0Q0UHR4a mc#gid=0

ashash62289
10-11-2012, 05:42 PM
Wait, SABA (with ed-invest loans) and SGU (with federal loans) will end up being the same in price?!?!?

fatwalletuab
10-11-2012, 11:32 PM
although the interest collected is about the same, but the principal (tuition+room) is still 100K cheaper at SABA. But as the term year increases, the compound interest kicks in, then it becomes a different story, I guess the point is to pay off your school loan quicker if you go to SABA
Wait, SABA (with ed-invest loans) and SGU (with federal loans) will end up being the same in price?!?!?

ctang
04-11-2013, 12:39 PM
although the interest collected is about the same, but the principal (tuition+room) is still 100K cheaper at SABA. But as the term year increases, the compound interest kicks in, then it becomes a different story, I guess the point is to pay off your school loan quicker if you go to SABA

There is one important point that is not being considered here. With the federal loans at SGU, AUC,and Ross, under the most common scenario for a graduate working in a non-profit organization, the maximum one needs to pay per month as a resident and fellow is ~$400 (not $2,000) and after 10 years what is not paid is forgiven. Notice it doesn't matter how much you borrow. This relatively new US government sponsor option does NOT apply to private loans. So you are stuck with what you borrowed plus interest.

Maximal monthly payment of federal loans is 15% of (salary - poverty level)/12
and maximal duration of payment is 10 years if one works for a non-profit (most hospitals).
This does not apply to Canadians . And the loan forgiveness option does not apply if one goes into private practice before 10 years.







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