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Intern
Joined: 19 Apr 2011
Posts: 44

Kudos [?]: 11 [0], given: 6

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01 May 2013, 10:53
ctgmat123 wrote:
Discover Financial and Wells Fargo have competitive rates. I have excellent credit and my parents offered to co-sign, so based on what I've seen it's definitely worth it for me to mix in a healthy amount of private variable-rate with the fixed government. I'm of the opinion that rates are going to remain low for the next few years, at minimum.

I'm of a similar opinion. If I may ask, what rates were they quoting you for both fixed and variable? Also, how much did having a cosigner help? My parents are pretty anti-debt but I might be able to convince them if it gets me a lower rate.

Kudos [?]: 11 [0], given: 6

Current Student
Joined: 04 Oct 2011
Posts: 433

Kudos [?]: 119 [0], given: 150

Concentration: Finance
GMAT 1: 700 Q44 V41
GMAT 2: 750 Q48 V46
GPA: 3.03
WE: Project Management (Military & Defense)

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05 May 2013, 11:53
Does anybody know if you are required to take the full unsubsidized loan amount if you take the federal loans? I am looking at my finances and depending on the job my wife gets I might need some loans but not a full \$20,500. Can you accept federal loans and ask for just \$10,000 for example?

EDIT: In case anybody else is wondering, I called the financial aid office and they said yes. You can accept any amount up to \$20,500 in Federal Loans.

Kudos [?]: 119 [0], given: 150

Senior Manager
Joined: 17 Mar 2011
Posts: 449

Kudos [?]: 186 [0], given: 5

Location: United States (DC)
Concentration: General Management, Technology
GMAT 1: 760 Q49 V45
GPA: 3.37
WE: Information Technology (Consulting)

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10 May 2013, 10:14
emr23 wrote:
From my understanding - if your parents write you a check the value over \$13k will be subject to the gift tax. If they make the check payable to your school the gift tax doesn't apply.

This isn't quite correct. You have to report gifts over \$13k but you won't necessarily have to pay taxes on it. Each person has a lifetime gift exclusion of over \$5 million dollars that you can give to whoever you want without having to pay gift tax on it. Additionally, each year you get \$13k (recently upped to \$14k) that you can give to whoever you want without it counting against your lifetime gift exclusion (of more than \$5 million). That's why you have to report gifts over \$13k, so that the IRS knows how much of your \$5 million exclusion you've used.

It's called an 'exclusion' because that amount is excluded from gift taxes.

Kudos [?]: 186 [0], given: 5

Manager
Joined: 14 Jun 2010
Posts: 83

Kudos [?]: 40 [0], given: 5

Location: United States (NY)
Schools: Duke '15 (M)
WE: Investment Banking (Investment Banking)

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20 May 2013, 13:39
dilbert99 wrote:
ctgmat123 wrote:
Discover Financial and Wells Fargo have competitive rates. I have excellent credit and my parents offered to co-sign, so based on what I've seen it's definitely worth it for me to mix in a healthy amount of private variable-rate with the fixed government. I'm of the opinion that rates are going to remain low for the next few years, at minimum.

I'm of a similar opinion. If I may ask, what rates were they quoting you for both fixed and variable? Also, how much did having a cosigner help? My parents are pretty anti-debt but I might be able to convince them if it gets me a lower rate.

For Variable, I think i was about a 5.5% to start before having a co-sign, and 3.25% with (Prime + 0)

Kudos [?]: 40 [0], given: 5

Manager
Status: Yale SOM 2015!
Joined: 28 Feb 2012
Posts: 180

Kudos [?]: 63 [0], given: 107

Location: United States (MA)

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24 May 2013, 08:46
Does it make sense to apply with a co-signor if they have a lower credit score than you and/or are retired?

My credit is decent (735) given my super short credit history, but I know that a lot of people suggest getting a cosignor for private loans. My dad is maybe the only one who would make sense. His credit is about 50-60 points lower than mine (doesn't have a credit card or any loans or outstanding debt) and he's retired and living off investment income and social security.

Neither of us can imagine it'd make much sense for him to apply with me, and I don't want to unnecessarily have his credit pulled if it wouldn't make a difference. Anyone have experience with this?

Kudos [?]: 63 [0], given: 107

Intern
Joined: 28 Jan 2012
Posts: 44

Kudos [?]: 7 [1], given: 1

GMAT 1: 710 Q45 V42
GPA: 3.91

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24 May 2013, 16:36
1
KUDOS
lb2015 wrote:
Does it make sense to apply with a co-signor if they have a lower credit score than you and/or are retired?

My credit is decent (735) given my super short credit history, but I know that a lot of people suggest getting a cosignor for private loans. My dad is maybe the only one who would make sense. His credit is about 50-60 points lower than mine (doesn't have a credit card or any loans or outstanding debt) and he's retired and living off investment income and social security.

Neither of us can imagine it'd make much sense for him to apply with me, and I don't want to unnecessarily have his credit pulled if it wouldn't make a difference. Anyone have experience with this?

Even though his credit is lower than yours, its still not horrible. From the bank's perspective there is a chance that you could have financial difficulties while he is still able to make payments on the debt, which means that they have a better chance of getting their money back than if they relied only on you for repayment.

It may not make as much of a difference to your interest rate as it would if he was the one with a higher credit rating, but it is still better than not having a cosigner.

Kudos [?]: 7 [1], given: 1

Manager
Status: Yale SOM 2015!
Joined: 28 Feb 2012
Posts: 180

Kudos [?]: 63 [0], given: 107

Location: United States (MA)

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28 May 2013, 09:22
bartthecartoon wrote:
lb2015 wrote:
Does it make sense to apply with a co-signor if they have a lower credit score than you and/or are retired?

My credit is decent (735) given my super short credit history, but I know that a lot of people suggest getting a cosignor for private loans. My dad is maybe the only one who would make sense. His credit is about 50-60 points lower than mine (doesn't have a credit card or any loans or outstanding debt) and he's retired and living off investment income and social security.

Neither of us can imagine it'd make much sense for him to apply with me, and I don't want to unnecessarily have his credit pulled if it wouldn't make a difference. Anyone have experience with this?

Even though his credit is lower than yours, its still not horrible. From the bank's perspective there is a chance that you could have financial difficulties while he is still able to make payments on the debt, which means that they have a better chance of getting their money back than if they relied only on you for repayment.

It may not make as much of a difference to your interest rate as it would if he was the one with a higher credit rating, but it is still better than not having a cosigner.

Thanks for your advice! I spoke with a Discover rep who basically confirmed everything that you said and suggested trying a co-signer just to see. Still waiting to hear back on my final rate—on my own, I got prime+2.75% (6% currently), so I’m hoping that will go down once he’s added.

Kudos [?]: 63 [0], given: 107

Intern
Joined: 09 Feb 2013
Posts: 20

Kudos [?]: 1 [0], given: 3

Schools: Jones '15 (M)
GMAT 1: 680 Q45 V38

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28 May 2013, 09:37
Has anyone here had any experience with Texas CAL Loans? The Financial Aid office at my school recommended them over the Grad PLUS Loans. They seem to offer relatively good terms, but wondering if anyone has thoughts on them or experience using them/paying them back before I apply.

http://www.hhloans.com/index.cfm?object ... 774CF078CB

Kudos [?]: 1 [0], given: 3

Director
Joined: 26 May 2010
Posts: 719

Kudos [?]: 206 [0], given: 642

Location: United States (MA)
Concentration: Strategy
Schools: MIT Sloan - Class of 2015
WE: Consulting (Mutual Funds and Brokerage)

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28 May 2013, 13:32
billb wrote:
Has anyone here had any experience with Texas CAL Loans? The Financial Aid office at my school recommended them over the Grad PLUS Loans. They seem to offer relatively good terms, but wondering if anyone has thoughts on them or experience using them/paying them back before I apply.

http://www.hhloans.com/index.cfm?object ... 774CF078CB

No experience here, but looking through the loan terms, I'd caution you to make sure you factor in the origination fee when comparing different loans. Here's the part of note that I pulled from that site:

Quote:
The following fee will be deducted from each College Access Loan:

A 3% origination fee if both the borrower and cosigner have a good credit standing, or
A 5% origination fee if either the borrower or cosigner, but not both, has a good credit standing.

Seems like a pretty high fee to me!

Kudos [?]: 206 [0], given: 642

Intern
Joined: 29 May 2013
Posts: 9

Kudos [?]: [0], given: 0

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29 May 2013, 22:41
aaudetat wrote:
Guys, I decided to bump this. As folks start hearing about decisions, they start thinking about money....

Keep in mind, this info is from a bit ago, but still a good place to start.

Yeah, I agree with you.

Kudos [?]: [0], given: 0

Director
Status: Can't wait for August!
Joined: 13 Sep 2011
Posts: 988

Kudos [?]: 352 [0], given: 109

Location: United States (MA)
Concentration: Marketing, Strategy
GMAT 1: 660 Q44 V37
GMAT 2: 680 Q45 V38
GMAT 3: 710 Q45 V42
GPA: 3.32
WE: Information Technology (Retail)

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31 May 2013, 12:14
at which point would you go for a variable rate loan based off of 1 month LIBOR instead of Prime?

would the spread need to be 2.75%, or maybe 3%???

Prime less 0.25% vs LIBOR + 2.75???

Prime less 0.25% vs LIBOR + 2.5? (I'd assume LIBOR on this).

are we expecting libor and prime to stay around 3% apart for the foreseeable future? or should I just go with prime less 0.25% in either case because it'll most likely be more constant?

Kudos [?]: 352 [0], given: 109

Intern
Joined: 23 Oct 2012
Posts: 20

Kudos [?]: 4 [0], given: 3

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04 Jun 2013, 12:07
This question may already be answered somewhere, but when is the best time to apply for grad PLUS loans? Is it too early to apply now?

Kudos [?]: 4 [0], given: 3

Manager
Joined: 09 Jul 2012
Posts: 59

Kudos [?]: 15 [0], given: 29

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19 Jun 2013, 09:40
I had a question regarding the financing option for international students. BTW, after my research on this topic I believe it is about time for international GMAT-clubbers to make a topic only concerning MBA financing for international students - loans, scholarships, fellowships, outside sources, visa issues etc. Obstacles are different and it is not all about what is the best interest rate in current market or what bank is the best lender, although these discussions are much appreciated.

Anyway, to get back to the question. I looked into Kenan-Flagler and really liked the program. Then I glanced at financing options and was happy to hear that it offers no co-signor loans to international students. But to my disappointment, when I downloaded a financial aid brochure I realized that the loans cannot cover living expenses (sigh). So I am guessing that, basically, they expect an Eastern European like me to shell out \$29K, which I don't have, each year on top of the loans I would need to get . Basically, the best option for me seems to be to get a co-signor and hope that I would be allowed to borrow money to cover living expenses.

So my question is, are international students with a US co-signor allowed to borrow for living expenses? I have a relatives in US who might be interested to help out (and seem to be well off) but I am not sure how much of a burden would those loans impose on their credit score...any ideas? Oh and what are exactly fellowship?

Kudos [?]: 15 [0], given: 29

Director
Status: Can't wait for August!
Joined: 13 Sep 2011
Posts: 988

Kudos [?]: 352 [0], given: 109

Location: United States (MA)
Concentration: Marketing, Strategy
GMAT 1: 660 Q44 V37
GMAT 2: 680 Q45 V38
GMAT 3: 710 Q45 V42
GPA: 3.32
WE: Information Technology (Retail)

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19 Jun 2013, 09:51
Baracuda123 wrote:
I had a question regarding the financing option for international students. BTW, after my research on this topic I believe it is about time for international GMAT-clubbers to make a topic only concerning MBA financing for international students - loans, scholarships, fellowships, outside sources, visa issues etc. Obstacles are different and it is not all about what is the best interest rate in current market or what bank is the best lender, although these discussions are much appreciated.

Anyway, to get back to the question. I looked into Kenan-Flagler and really liked the program. Then I glanced at financing options and was happy to hear that it offers no co-signor loans to international students. But to my disappointment, when I downloaded a financial aid brochure I realized that the loans cannot cover living expenses (sigh). So I am guessing that, basically, they expect an Eastern European like me to shell out \$29K, which I don't have, each year on top of the loans I would need to get . Basically, the best option for me seems to be to get a co-signor and hope that I would be allowed to borrow money to cover living expenses.

So my question is, are international students with a US co-signor allowed to borrow for living expenses? I have a relatives in US who might be interested to help out (and seem to be well off) but I am not sure how much of a burden would those loans impose on their credit score...any ideas? Oh and what are exactly fellowship?

eek, not only the 50K cap a year but Prime Rate + 5.00% variable with origination fee of 2%. International students have it rough, I would honestly look for other options...

With a cosigner, you can go through a private lender and receive a loan up to the schools total cost (tuition + living expenses and whatever else they roll into it)

Kudos [?]: 352 [0], given: 109

Intern
Joined: 10 Mar 2009
Posts: 2

Kudos [?]: [0], given: 0

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24 Jun 2013, 08:45
Question to those that have already applied for private loans (and especially those receiving the lowest rates):
when applying, are you inputting your current income information (assuming you're still at your job), rent, etc or are you submitting your expected income (for me, that would be zero, unless I estimate next summer's internship earnings)?

Thanks!

Kudos [?]: [0], given: 0

Manager
Status: Yale SOM 2015!
Joined: 28 Feb 2012
Posts: 180

Kudos [?]: 63 [0], given: 107

Location: United States (MA)

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24 Jun 2013, 09:21
bert384201 wrote:
Question to those that have already applied for private loans (and especially those receiving the lowest rates):
when applying, are you inputting your current income information (assuming you're still at your job), rent, etc or are you submitting your expected income (for me, that would be zero, unless I estimate next summer's internship earnings)?

Thanks!

I had thought you were supposed to say zero, but then the last private lender I spoke with told me to input my 2012 income because that's what this company used to determine eligibility. However, this lender is a private-public partnership only available to CT residents or those going to school in CT (CHESLA) and it's a flat 5.99% rate for anyone who passes the credit check. So, bottom line, not sure if it's a representative guideline.

When I applied on my own using zero income, I was offered loans for Discover and SallieMae and denied at Chase. The rates I was offered weren't great, though. Best advice I can give is to double check with each lender for their policy--I think my situation was really the exception and you don't want to get into a situation where your loan is revoked for misrepresentation. What a headache that'd be!

Kudos [?]: 63 [0], given: 107

Director
Status: Can't wait for August!
Joined: 13 Sep 2011
Posts: 988

Kudos [?]: 352 [0], given: 109

Location: United States (MA)
Concentration: Marketing, Strategy
GMAT 1: 660 Q44 V37
GMAT 2: 680 Q45 V38
GMAT 3: 710 Q45 V42
GPA: 3.32
WE: Information Technology (Retail)

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24 Jun 2013, 09:29
I got the lowest rate possible through SallieMae.

What I did (and what SallieMae told me to do)
1 put total HHLD income for 2012 (w2 totals)
2 put current rent
3 GET A COSIGNER!!!! No matter what your credit is, a cosigner with great credit will put you in a much better place

I went the variable route, and got the best possible rate for the payment plan I selected.

Kudos [?]: 352 [0], given: 109

Intern
Joined: 10 Mar 2009
Posts: 2

Kudos [?]: [0], given: 0

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24 Jun 2013, 11:00

Kudos [?]: [0], given: 0

Intern
Joined: 19 Apr 2011
Posts: 44

Kudos [?]: 11 [0], given: 6

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25 Jul 2013, 18:20
Well I can say my experience with Sallie Mae was a waste of time. I applied for a variable rate private loan and their "offer" was a joke - 7% interest rate (their stated range is 2.5-7%, so basically I must be the worst credit out there). I have excellent credit with no debt at all, excellent income (>100k), and a substantial amount of assets. I was literally shocked / insulted to see the interest rate they wanted to charge me.

Kudos [?]: 11 [0], given: 6

Director
Status: Can't wait for August!
Joined: 13 Sep 2011
Posts: 988

Kudos [?]: 352 [0], given: 109

Location: United States (MA)
Concentration: Marketing, Strategy
GMAT 1: 660 Q44 V37
GMAT 2: 680 Q45 V38
GMAT 3: 710 Q45 V42
GPA: 3.32
WE: Information Technology (Retail)

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26 Jul 2013, 06:26
dilbert99 wrote:
Well I can say my experience with Sallie Mae was a waste of time. I applied for a variable rate private loan and their "offer" was a joke - 7% interest rate (their stated range is 2.5-7%, so basically I must be the worst credit out there). I have excellent credit with no debt at all, excellent income (>100k), and a substantial amount of assets. I was literally shocked / insulted to see the interest rate they wanted to charge me.

wow... that is crazy... Sorry to hear that

Kudos [?]: 352 [0], given: 109

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