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UChicago ends its direct loan program

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svrider
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UChicago ends its direct loan program [#permalink] New post   03 Jul 2008, 12:09
I just read this article about UChicago ending its loan program. I don't know if any of the matriculating or current GSB students are affected. With the credit crunch, we might have other schools dropping out and private lenders hiking up interest rates at the same time. Not a good situation...

https://www.chicagotribune.com/news/loca ... 4430.story
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Re: UChicago ends its direct loan program [#permalink] New post   03 Jul 2008, 12:18
This scares me :yikes

svrider wrote:
I just read this article about UChicago ending its loan program. I don't know if any of the matriculating or current GSB students are affected. With the credit crunch, we might have other schools dropping out and private lenders hiking up interest rates at the same time. Not a good situation...

https://www.chicagotribune.com/news/loca ... 4430.story
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Re: UChicago ends its direct loan program [#permalink] New post   03 Jul 2008, 19:35
Looks like matriculating students are affected.

"About 3,000 students—or one-third of the graduate population—will now have to apply for loans for the fall semester through other lenders."
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Re: UChicago ends its direct loan program [#permalink] New post   04 Jul 2008, 12:34
I dont know any Americans who use Kellogg's since other companies offer extra benefits going with them. However, I have heard that its pretty popular with internationals. So I bet its going to be internationals who will be the ones most affected by GSB eliminating their program.
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Re: UChicago ends its direct loan program [#permalink] New post   04 Jul 2008, 13:17
The mail suggested that it's affecting everybody who uses IDAPP (the loan program), including Americans. But it also clearly said that the University is most concerned about internationals as they have fewer alternative options...

We guys will get our money, but I would not be too happy paying a higher price on the loans :evil:
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Re: UChicago ends its direct loan program [#permalink] New post   04 Jul 2008, 15:10
so will internationals still have other no-cosigner options? ... and this news is not posted on the GSB website, why ?!?!?!
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Re: UChicago ends its direct loan program [#permalink] New post   04 Jul 2008, 15:21
ujjib wrote:
The mail suggested that it's affecting everybody who uses IDAPP (the loan program), including Americans. But it also clearly said that the University is most concerned about internationals as they have fewer alternative options...

We guys will get our money, but I would not be too happy paying a higher price on the loans :evil:


I am sure it affects everyone but I was saying that most Americans wont use the schools programs because others provide discounts on rates, while school programs dont.
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Re: UChicago ends its direct loan program [#permalink] New post   05 Jul 2008, 01:53
RR -- Really, other lenders offer better rates? For Stafford, Northwestern University was the only lender that waived any origination fees.
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Re: UChicago ends its direct loan program [#permalink] New post   05 Jul 2008, 03:12
Darden2010 wrote:
so will internationals still have other no-cosigner options? ... and this news is not posted on the GSB website, why ?!?!?!


Darden, IDAPP backed out only earlier this week or last week...so all this is very very recent. And the second thing is that GSB still guarantees loans without co-signer. The latest is that they may already have somebody else on board, and are currently negotiating the terms.. So, don't see a reason why they would post on website. Doesn't impact anybody other than new admits and current students, all of whom have been kept informed...Just hoping the new terms aren't very different from the original ones..
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Re: UChicago ends its direct loan program [#permalink] New post   05 Jul 2008, 19:32
MGOBLUE2 wrote:
RR -- Really, other lenders offer better rates? For Stafford, Northwestern University was the only lender that waived any origination fees.


Ya but citi knocks the interest rate down by .75% I believe...which is better over the long term if you arent planning on paying it off right away.
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Re: UChicago ends its direct loan program [#permalink] New post   05 Jul 2008, 21:00
You can compare incentives offered by Stafford lenders at sites like https://www.studentloanlistings.com/Default.aspx

Some states offer additional incentives to in-state borrowers, for instance it seems like the State of Georgia's student finance commission offers a 0.50% auto-debit reduction as well as a 1.00% reduction after graduation. With zero fees, that effectively puts your Stafford interest rate at around 5.30% in repayment.

Of course, you need to consider whether foregoing interest rate reductions in favour of zero origination and guarantee fees make more sense.
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Re: UChicago ends its direct loan program [#permalink]
05 Jul 2008, 21:00

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