UChicago ends its direct loan program

Question

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

Darden2010 · Answer

This scares me :yikes

cpgmba · Answer

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."

riverripper · Answer

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.

ujjib · Answer

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:

Darden2010 · Answer

so will internationals still have other no-cosigner options? ... and this news is not posted on the GSB website, why ?!?!?!

riverripper · Answer

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.

MGOBLUE2 · Answer

RR -- Really, other lenders offer better rates? For Stafford, Northwestern University was the only lender that waived any origination fees.

ujjib · Answer

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..

riverripper · Answer

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.

solaris1 · Answer

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.

UChicago ends its direct loan program

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