11 Private loans
Because these loans are offered without federal insurance and require no
Low- High-
FAFSA application, they are often referred to as ‘private loans’ or ‘alterna-
Lowest
est est
tive loans.’ Almost all of them are ‘underwritten,’ which means the fees
pos-
Highest pos- pos-
and interest rates you’ll pay will vary between the lowest and highest rates
For For
Co-
School
tifi - sible
possible sible sible
based upon your credit-worthiness, or the creditworthiness of a willing
Stu- Par-
signer
cer
cation inter-
interest up- up-
co-maker. Expect variations from loan to loan and from lender to lender.
dents? ents?
re-
quired?
re- est
With some notable exceptions, convenience and liberal repayment terms
quired? rate
rate (%) front front
are more common than low interest rates. Rates and terms are subject to
(%)
fees fees
(%) (%)
change without notice. Certain qualifi cations or behavior may be required
to qualify for discounts, rebates, rewards and special offers.
Charter One TruFit Student Loan Yes No
Some-
times
Always 2.75 12.75 0.00 5.00
Chase Select Graduate Health Professions
Chase
Loan (school certifi ed)
Yes No
Some-
times
Always 4.70 12.55 0.00 0.00
Chase Chase Select Graduate Loan (school certifi ed) Yes No
Some-
times
Always 4.70 12.55 0.00 0.00
Chase Select Undergraduate Loan (school
Chase
certifi ed)
Yes No
Some-
times
Always 4.70 12.55 0.00 0.00
Citizens Bank TruFit Student Loan Yes No
Some-
times
Always 2.75 12.75 0.00 5.00
Discover Student
Certifi ed Private Loan for College Students Yes No
Some-
Loans times
Always 4.25 11.00 0.00 0.00
Terry Kell
Assistant Director of Financial Aid
University of Wisconsin, Madison
SAFRA legislation also affects Perkins loans, and that affects this large school
in a large way. Terry Kell explains those changes and their likely impact.
How will new student borrowers with Perkins loans fare under the
proposed legislation?
These are the people who will be affected the most. We’ve always used
Perkins as the fi rst loan for the neediest students. Even for the neediest
of students, a Direct Perkins loan willnow act much like an unsubsidized
Stafford loan. They’ll pay or accrue interest from day one. That interest
change will add twenty to thirty percent to a Perkins borrower’s debt load.
All occupational cancellation benefi ts are eliminated with the exception of
military service and limited teaching. Interest forgiveness during periods of
unemployment is also no longer available. There’s even the possibility that
the school will have to pay Uncle Sam a fee for each Perkins loan originat-
ed—amount to be determined. Finally, it’s also possible that no borrower will
be Perkins-eligible until he or she has exhausted Stafford, both subsidized
and unsubsidized.
Read his entire interview, and others on the topic of SAFRA,
at TodaysCampus.com/articles/load.aspx?art=1826
60 T
oday’s
C
ampus subscribe at no charge at www.todayscampus.com
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68