Senior Member dakota3 Posted May 12, 2008 Senior Member Share Posted May 12, 2008 When you take a student loan through Fannie Mae, like I did, you make monthly INTEREST payments. You do not have to pay on the principal borrowed until you are done with school. Thats how it used to be, anyway. So, yes, they are doing you a favor if you compare that to a bank loan. W/ an interest only loan you are not paying towards the balance, so in essence you start from scratch after you're done school. So if you borrow 10k,so after 4 years of school you still owe 10k. I know that it may be the only option at this point, but they certainly arent doing you any favors by offering this type of plan. Link to comment Share on other sites More sharing options...
Senior Member wylie Posted May 13, 2008 Senior Member Share Posted May 13, 2008 Originally posted by dakota3:When you take a student loan through Fannie Mae, like I did, you make monthly INTEREST payments. You do not have to pay on the principal borrowed until you are done with school. Thats how it used to be, anyway. So, yes, they are doing you a favor if you compare that to a bank loan. W/ an interest only loan you are not paying towards the balance, so in essence you start from scratch after you're done school. So if you borrow 10k,so after 4 years of school you still owe 10k. I know that it may be the only option at this point, but they certainly arent doing you any favors by offering this type of plan. Actually, they are doing you a favor if you are a grad student and cannot afford to repay the principal while in school. You get the money now and are not paying high interest rates, nor seeing the prinicpal grow while making very small monthly payments. It's an option, maybe not one everyone agrees with it, but it certainly is better than borrowing at an artifically high interest rate. Link to comment Share on other sites More sharing options...
Senior Member Dewayne Posted May 13, 2008 Senior Member Share Posted May 13, 2008 My wife didn't have to pay anything until 6 months after her last class; and the government paid the interest while she was in school. Then the rate was set at like 0.50 over prime. I believe it is a Stafford Loan. It was better than ANY alternative; other than not going to school. 100? 'mini' grapfts by Latham's Hair Clinic - 1991 (Removed 50 plugs by Cooley 3/08.) 2750 FU 3/20/08 by Dr. Cooley My Hair Loss Website - Hair Transplant with Dr. Cooley Current regimen: 1.66 mg Proscar M-W-F Rogaine 5% Foam - every now and then AndroGel - once daily Lipitor - 5 mg every other day Weightlifting - 2x per week Jogging - 3x per week Link to comment Share on other sites More sharing options...
Senior Member aaron1234 Posted May 13, 2008 Author Senior Member Share Posted May 13, 2008 The thing is is that I know I could handle a $200 monthly payment. I do have the option to pay off the principal while I'm still in school, right? Dr. G: 1,000 grafts (FUT) 2008 Dr. Paul Shapiro: 2,348 grafts (FUT) 2009 ~ 1,999 grafts (FUT) 2011 ~ 300 grafts (Scar Reduction) 2013 Dr. Konior: 771 grafts (FUT) 2015 ~ 558 grafts (FUT) 2017 ~ 1,124 grafts (FUE) 2020 My Hair Transplant Journey with Shapiro Medical Group Link to comment Share on other sites More sharing options...
Senior Member dakota3 Posted May 13, 2008 Senior Member Share Posted May 13, 2008 Actually, they are doing you a favor if you are a grad student and cannot afford to repay the principal while in school. You get the money now and are not paying high interest rates, nor seeing the prinicpal grow while making very small monthly payments. It's an option, maybe not one everyone agrees with it, but it certainly is better than borrowing at an artifically high interest rate. I guess we all see things a little differant! I think that even though the principal is'nt rising "which it never does" It also is'nt going down. After the 4 years you still owe the whole amount of the principal and still have interest. Banks will always come out on top. Wylie, You are right though. It is easier while you are in school to have a smaller payment. Link to comment Share on other sites More sharing options...
Senior Member wylie Posted May 13, 2008 Senior Member Share Posted May 13, 2008 Originally posted by aaron1234:The thing is is that I know I could handle a $200 monthly payment. I do have the option to pay off the principal while I'm still in school, right? Of course. Link to comment Share on other sites More sharing options...
Senior Member Dewayne Posted May 13, 2008 Senior Member Share Posted May 13, 2008 Originally posted by dakota3:Actually, they are doing you a favor if you are a grad student and cannot afford to repay the principal while in school. You get the money now and are not paying high interest rates, nor seeing the prinicpal grow while making very small monthly payments. It's an option, maybe not one everyone agrees with it, but it certainly is better than borrowing at an artifically high interest rate. I guess we all see things a little differant! I think that even though the principal is'nt rising "which it never does" It also is'nt going down. After the 4 years you still owe the whole amount of the principal and still have interest. Banks will always come out on top. Wylie, You are right though. It is easier while you are in school to have a smaller payment. But, Dakota; you are missing a very important point. After the 4 years he will have a head full of hair as well! Seriously, I wouldn't recommend someone over-extend themselves for sure; but I'll say again this is a hell of an investment and I'd drive around in a 1989 Pinto I guess if I had to in order to get it fixed. 100? 'mini' grapfts by Latham's Hair Clinic - 1991 (Removed 50 plugs by Cooley 3/08.) 2750 FU 3/20/08 by Dr. Cooley My Hair Loss Website - Hair Transplant with Dr. Cooley Current regimen: 1.66 mg Proscar M-W-F Rogaine 5% Foam - every now and then AndroGel - once daily Lipitor - 5 mg every other day Weightlifting - 2x per week Jogging - 3x per week Link to comment Share on other sites More sharing options...
Senior Member dakota3 Posted May 13, 2008 Senior Member Share Posted May 13, 2008 But, Dakota; you are missing a very important point. After the 4 years he will have a head full of hair as well! Good point! However hopefully he doesnt get so stressed over money that his new hair falls out. LOL! That would suck! Link to comment Share on other sites More sharing options...
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