Your Questions About Save Loan Schedule

George asks…

Can I use my student loan to help cover my bills until I find a part-time job?

I have just enrolled in a full time pre-cert grad program. I have to leave my full time job in about a month. I have no job lined up yet. I wasn’t sure of my class schedule. I have been living pay check to pay check–sadly I have very little savings. I’m still living at home with my widowed parent who is retired and an older sister–I don’t want to borrow money from them and would like to move out ASAP. Can I use the money from student loans to help with this transition until I get a part-time job to pay my bills? So far, the summer program cost would be close to $3,000–excluding books, etc. My paycheck was very low and was just barely able to cover $2,000 in bills each month. I have been out of school a while and wasnt’ sure how much borrowing is allowed. My family is advising me to stay at home because it would save money–but I have to get out of here because they are driving me nuts! Any advice? Thank you so much.

John answers:

You can use student loan money to pay for bills and living expenses. However, the loan money goes to your school and will be used to pay for your tuition and books first. If you have no outstanding balance with them, then you will get the money left over.

The limits independent students are often not enough to cover both tuition and living expenses. (certainly not 2,000 in bills each month).

The max independent students can borrow per YEAR (not per semester) Stafford loans is :
Freshman 7,500
Sohp 8,500
Jr and Sr’s 10,500

Stay at home until you find another job. THEN move out IF you can afford it.

Betty asks…

Which Bank should I pick for a private student loan (read info)?

Im goin to borrow somewhere between 12k & 13k and these are my options…

—–Fifth Third Bank—–

Benefits

* Save more than $8,000 over traditional 15-year private payment-deferred student loans, putting you on the fast track to financial success1
* Competitive interest rates that reward good credit
* No disbursement or repayment fees
* Smart RewardSM- receive a 2% reward in your Upromise account each month-just for making the scheduled monthly payments on time2
* A 0.25 percentage point interest rate reduction is available while enrolled in monthly recurring automatic debit3
* Loan amounts up to your total education cost after scholarships, grants, and federal aid4
* Applying with a creditworthy cosigner may help you qualify for and/or receive a lower interest rate
* You can apply to release your cosigner just 12 months after the separation period5

——Sun Trust——

Benefits

* NO FEES.
* SunTrust Graduation Reward – $300 principal reduction on each SunTrust Academic Answer loan upon graduation Proof of graduation (copy of diploma or final transcript) must be submitted within 90 days of graduation.
* Six-month grace period after graduating or dropping below half-time enrollment.
* No payments required during in-school period.
* Interest rates start at 1-month LIBOR + 3.75%.
* Lower your interest rate by 0.25% when you choose to have your payments automatically deducted from your personal bank account.
* Cosigner release option available after 48 consecutive on-time principal and interest payments (borrower must meet credit guidelines at time of request).
* Borrow up to the cost of education minus financial aid received.
* Up to 15 years to repay.
* Satisfactory Academic Progress is not required.

——- Chase ——-

Benefits

* No origination or repayment fees..
* A 0.25% interest rate reduction for borrowers who have their monthly payments automatically deducted from a bank account. *.
* Competitive interest rates..
* In many cases, lower rates may be obtained by applying with a qualified cosigner..
* Cosigner release option available after 36 on-time consecutive payments.**.
* No payments required while in school..
* This information was current as of March 23, 2010 and is subject to change. You can find interest rate, fee and other cost information, as applicable, at

——-Wells Fargo —–

Benefits

* No payments are required while a student is in school and for up to six months after graduation or leaving school
* 0.50% interest rate reduction at repayment upon verification of graduation with the Wells Fargo Student Graduation BenefitSM Program (effective for loans disbursed on or after July 1, 2008).
* 0.25% interest rate reduction at repayment when Wells Fargo automatically withdraws payments from a personal checking or savings account – discount is removed if automatic payments are cancelled (effective for loans disbursed on or after July 1, 2008).
* No origination, disbursement or repayment fees
* Combined billing for federal and private loans
* One place for all your financial needs
* Cosigner release after the first 24 consecutive monthly payments are received on time – minimum credit guidelines must be met at the time of the request
* Convenient online and phone application with instant credit decisions Wells Fargo reserves the right to discontinue or modify our rewards for future disbursements at any time without notice
* .Most students will require a cosigner – apply together to speed up the application process.
i already got federal loans (subsidized and unsubsidized) and its not enough, hence the private loan

John answers:

Colleges.mywebcommunity.org – it provides some tips about applying to US federal and state grants for college students.

Paul asks…

Can someone help me with an auto loan question?

I have never had any type of loan before.
Recently, I became pretty much broke, but I started a new job a few weeks ago, then my car broke down (engine failure).
Now I need a new car, but I don’t have any money saved up yet.
My credit is good so I am thinking of a loan.
I want to buy a cheap car that I find on craigslist, something around $2000 or so.
Is an auto loan the way to go for me?
Can I pay off the $2000 quickly ahead of the monthly payment schedule if I have the cash for it pretty soon?
I really need a car to get back and forth to work. Thanks

John answers:

Auto finance is what I do for a living and the amount your wanting to borrow is way under the minimum amount to finance of all major lenders.

Your best bet is going to be your own local bank, credit union or parents.

Good luck.

Daniel asks…

Rent vs. Buy a house with a physician loan?

My fiance and I are trying to determine whether or not we should rent or buy a house. She is a second year resident physician and is currently in the process of applying for a fellowship. Her first choice would be to stay where we are, in which case, she would start her fellowship as soon as her residency ends (June 30, 2012). However, there is a small chance that she might be accepted into a fellowship in another state and start there on the same date.
Regions does a physician home loan that has a zero percent down payment, $0 PMI, and around a 4.75% APR on a seven year ARM. Regardless, of if we stay here or move somewhere else for her fellowship, we do not plan in staying in this house for more than three or four years, probably.
Between us, we have around $50,000 saved up. We are really wanting a place with a garage, because she is leaving and coming home at all hours with her work schedule. There are only two apartment complexes in our city that have apartments with attached garages. Both of them cost $1150 per month. Houses are even more expensive than that, for older, low quality construction.
Would buying a house with the above terms be a bad deal, even if we only live in it for 1 1/2 to 3 years?
Oh, we make about $90,000 between us and are looking at homes in the $200,000 – 275,000 price range.

John answers:

Closing costs:
Only buy a home if you know you will stay in it for a full 5 to 7 years.
It can take this long to break even from that huge cost.

ARMs:
Interest rates are about to rise, and rise fast.
The rates could possibly double in just the next 5 years.
You could find yourself with a payment in which the interest portion has doubled.
I warn everyone to stay away from any variable loans, arms, 5/5’s, 5/1’s, etc.
Stick to fixed rate only.

Very comfused as to how you can buy a home with 0% down and no PMI.
(perhaps its a perk, or perhaps its a trick to get you to sign up for the scam ARM loan).
4.75% is extremely high for an ARM loan in the first place.
(they are charging you for the perks hidden in the interest).
Go to bankrate.com site to see current rates.

Better idea: Keep renting, walk with her and pick her up at her car for safety.
If you buy this house under those terms, you will find yourself in a heap of trouble.
Keep in mind, that those ARMS carry hefty pre-payment penalties (when you sell) – that’s how they get you.
I can honestly say an ARM mortgage is the worst financial move anyone could do today…

Steven asks…

I was laid off 12/12/08. Single mon, 3 kids, no savings. Where can I find a loan shark 2 get a loan TODAY!!!!?

I wasn’t fired, I was laid off, and since it was through a temp agency, I wasn’t paid much and was going paycheck to paycheck. I have been looking for another job since. The temp agency called me 12/17/08 to say they found me another assignment but it doesn’t start until 01/21/09. I have nothing saved, because i didn’t earn much and was let go not because of my work habits or performance, but because the schedule created for me by my supervisors was no longer convenient for them so they laid me off. It is a week before Christmas and I have no way of Buying my children NOTHING for Christmas. I know everyone says that going to a loan shark is a bad idea. Well I’ve tried cash advances, payday loans, lenders etc……. I don’t have bad credit, just not enough credit, so those options are no good. I know the risks of a loan shark, but I need this information now!!!!! My children are honor roll students and great kids, so I refuse to tell them that they can no longer get the things on their list, especially since I was just talking to them and going over their Christmas lists with them 12/11/08 the day BEFORE I got laid off. So, unless you’re going to have useful information and can direct me to where I can get the money I need ASAP, then why bother answering the question. Someone get back to me ASAP, PLEASE?????

John answers:

Well if u dont wanna sell ur u know what

then I suggest just looking for a retail manager job

loan sharks stay away

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