It is currently 20 Aug 2017, 04:28

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# loans.. total noob questions

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
Intern
Joined: 27 Nov 2014
Posts: 12

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

loans.. total noob questions [#permalink]

### Show Tags

30 May 2015, 10:27
Hi all,
Some total noobie questions about school loans..

I filled out my FAFSA and applied for unsub federal loan max of \$20,500. I don't like the terms of Grad PLUS loans for the remainder. My parents will co-sign and I feel I can get better terms from private loans. So:

The school says I can borrow up to cost of attendance. How does the private lender know about federal loans I've applied for? Do I have to wait until I'm approved for federal loans before I move on to applying for private lending? Or do I just take total cost of attendance - federal loans applied for = amounts I apply for privately?

I'm a very financially savvy person but never done student loans before.. please don't mock me

edit: I'm also curious how different lenders know what I've applied for? I'd like to do gov loan + variable interest loan from one lender + fixed interest loan from a second lender.. Is it up to me to make sure total is only to the published cost of attendance?

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

Current Student
Joined: 30 Jan 2010
Posts: 301

Kudos [?]: 140 [1] , given: 73

Location: United States
Concentration: Strategy, Economics
Schools: Chicago Booth - Class of 2015
WE: Project Management (Real Estate)
loans.. total noob questions [#permalink]

### Show Tags

01 Jun 2015, 22:42
1
KUDOS
go2school wrote:
I feel I can get better terms from private loans.

Totally reasonable conclusion. Federal loans do come with much better protections and flexible repayment options than private ones, but can be more expensive. I opted for 100% private/variable on my MBA loans.

go2school wrote:
How does the private lender know about federal loans I've applied for?

They don't.

go2school wrote:
Do I have to wait until I'm approved for federal loans before I move on to applying for private lending?

No.

go2school wrote:
Or do I just take total cost of attendance - federal loans applied for = amounts I apply for privately?

That's the basic idea. You also have to subtract any scholarships, fellowships, and grants. My calculations never quite lined up with school's, so I applied for a few grand more than I knew I'd be eligible for. You can always accept a lower amount than you're approved for.

go2school wrote:
I'm also curious how different lenders know what I've applied for? I'd like to do gov loan + variable interest loan from one lender + fixed interest loan from a second lender.. Is it up to me to make sure total is only to the published cost of attendance?

They won't know what you've applied for, but they'll find out how much you've accepted from other lenders. Basically the process is this:
- Figure out what combination of loans you wants (up to COA less scholarships etc)
- Tell your financial aid officer before you accept with the lenders. For example: "I want my full Stafford amount (\$20,500), \$30,000 from Discover, and the balance of the COA from Citizens."
- The school is the clearing house that ensures you don't take more than the COA.
- Note that it works best to leave the last loan open-ended (e.g. "the balance of the COA"). Let the school do the math.

Kudos [?]: 140 [1] , given: 73

Intern
Joined: 27 Nov 2014
Posts: 12

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

Re: loans.. total noob questions [#permalink]

### Show Tags

02 Jun 2015, 03:58
Thanks so much Brandon. A million kudos if I could

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

Current Student
Joined: 30 Jan 2010
Posts: 301

Kudos [?]: 140 [0], given: 73

Location: United States
Concentration: Strategy, Economics
Schools: Chicago Booth - Class of 2015
WE: Project Management (Real Estate)
Re: loans.. total noob questions [#permalink]

### Show Tags

02 Jun 2015, 04:49
go2school wrote:
Thanks so much Brandon. A million kudos if I could

You're welcome. Let me know if it makes sense. Also, you'll probably want to verify the acceptance process on the school's end. Yours could be different than mine.

Kudos [?]: 140 [0], given: 73

Re: loans.. total noob questions   [#permalink] 02 Jun 2015, 04:49
Similar topics Replies Last post
Similar
Topics:
Peculiar Questions Concerning Student Loans 0 06 Aug 2014, 09:48
2 Student Loans 4 28 Aug 2016, 09:15
6 Best Student Loan Provider? 15 09 Jun 2009, 07:05
1 Second-year students -- question on FAFSA/student loans 2 27 Jan 2009, 08:10
Guaranteed Loans 1 01 Jan 2008, 15:07
Display posts from previous: Sort by

# loans.. total noob questions

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.