question about loans for grad school and options...

[couchrobt]

With most people, it will be awkward to ask money from others especially family so you can spend it on yourself for your own personal gain. It's not that they would decline to help, in fact they would. Thing is, if you can find another way on your own, take that turn.

[BuckyBadger]

what about my brother in law? i am pretty sure he doesnt need loan to lend me the money... he offered to pay for my car a while back but that's different but still should I try asking him to borrow from him and pay at a lesser rate or i should wait for the offer while maybe dropping hints?

Offering to help with a car is quite a bit different from loaning you $50k a year.

[shaselai]

ok. my sister calculated the loans and here's what the numbers show:
if borrow 120k (60k per year)
loan interest: 7.9 for 10 years repayment. ~1450 per month payment total 174k

if borrow from parents:
loan interest: 2.7 for 10 years (they have longer period than 10 but lets say that for now) ~1100 per month total 137k

The difference between the 2 loans is ~37k . My sister said if I am worried about accidents to myself why not have me get a life insurance ~120ish k for 10ish years so that if something were to happen to me my parents wont be facing the debt? It does sound bit depressing but it seems to cover the "what if..." scenario..

I am still bit towards paving my own way but my sister say it is a bit foolish especially this is 37kish difference we are talking about...

[snafu]

Yet another option is to take the 7% traditional loan with the expectation of changing it to a family loan [HELOC] at a lower interest rate when you graduate and get a job. The best thing you can do for yourself is to create as little debt as possible. Have you considered working to save enough for at least one year of the program?

Have you exhausted all applications for grants/scholarship? It's a lot of paperwork but the less you owe the smoother your next transition. You may not be able to work PT your 1st semester but when you feel more confident, you can try short term work to help with day-to-day expenses. Depending on location, it is often cheaper to share an apt. and prepare meals for yourself than live in residence.

[SteveBlissLaw]

The biggest thing is not to treat your loan like a new source of income. That is how people get in trouble

[shaselai]

what do you guys think about private loans? sallie mae and the like has variable aprs dependent on libor average. you guys think average it might be better than 7.9 fixed?

[Slug]

what do you guys think about private loans? sallie mae and the like has variable aprs dependent on libor average. you guys think average it might be better than 7.9 fixed?

It's completely dependent on your risk tolerance. You can lock in at 7.9 or hope that the variable rate is still low in 2 years when you graduate. I would be doing the latter.