Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Penfed Education Loans
Old 07-02-2009, 11:23 AM   #1
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 2,951
Penfed Education Loans

Two of our three children will be in college for the next two years so I have been looking at various options to cover the college account shortfall. I have plenty of bruises from the last 6 years of FAFSA, PLUS, Stafford, etc., etc. and the private loan option is looking pretty good thanks to Penfed Credit Union:
  • 7.99 Fixed
  • 25k maximum
  • 10 yr term (or less)
  • Loan disbursed to borrower and can be used for any school related expense.
The gov't PLUS loan rate is currently 8.5%, but then I would have a seperate loan for each child with the possibility of consolidating (for a fee). Lots of fees and other nonsense with these programs.

I applied online at Penfed and got approved in <24 hrs. They did not even ask any details about the students or schools. For all they know, the loan is for one student. I suppose the loan limit could be per student, but I don't need the max loan amount.
__________________

__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-02-2009, 12:08 PM   #2
Recycles dryer sheets
wrigley's Avatar
 
Join Date: Nov 2008
Location: Jacksonville
Posts: 345
Quote:
Originally Posted by jazz4cash View Post
Two of our three children will be in college for the next two years so I have been looking at various options to cover the college account shortfall. I have plenty of bruises from the last 6 years of FAFSA, PLUS, Stafford, etc., etc. and the private loan option is looking pretty good thanks to Penfed Credit Union:
  • 7.99 Fixed
  • 25k maximum
  • 10 yr term (or less)
  • Loan disbursed to borrower and can be used for any school related expense.
The gov't PLUS loan rate is currently 8.5%, but then I would have a seperate loan for each child with the possibility of consolidating (for a fee). Lots of fees and other nonsense with these programs.

I applied online at Penfed and got approved in <24 hrs. They did not even ask any details about the students or schools. For all they know, the loan is for one student. I suppose the loan limit could be per student, but I don't need the max loan amount.
My understanding is that FAFSA has to be filled out for each student getting ready to attend college regardless of the method of student loan/financing option. I am in the process of sending my last child through college and our experience with Stafford loans have been nothing but pleasant!

Mike
__________________

__________________
wrigley is offline   Reply With Quote
Old 07-02-2009, 02:42 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,288
What about a Home Equity Loan or Line of Credit? Our CU is currently offering 6% loans, and 3.25% LOC (variable).

Our son is going to grad school (and getting married in a few months - his WTB is in health-care, should be making good $), these rates look better than what he can get beyond the limited ($8,500) Fed subsidized loan (no interest accumulates until after graduation). So I might take out one of these home loans/LOC and he can owe me. The 6% isn't too attractive to me, I might prefer to just dip into savings and loan to him direct. And the 3.25% is variable, so some risk of rising rates there (but I could just pay up and dip into savings if that happens).

Of course one side of me wants to just stay out of it, and let him be fully independent in this matter. Another side says just keep it simple and make him an interest-free loan, the interest being a gift.

-ERD50
__________________
ERD50 is online now   Reply With Quote
Old 07-02-2009, 04:05 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 2,951
Quote:
Originally Posted by wrigley View Post
My understanding is that FAFSA has to be filled out for each student getting ready to attend college regardless of the method of student loan/financing option. I am in the process of sending my last child through college and our experience with Stafford loans have been nothing but pleasant!

Mike
FAFSA is only required for gov't sponsered loans and grants. Private loans do not require FAFSA. My opinion is that the schools want every student to do FAFSA so they have economic profile of thier student body, so they are very insistent that every fills out a FAFSA. There is also many schools that use alternate criteria to establish "need", but I believe those schools use resources other than US gov't.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Old 07-02-2009, 04:14 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 2,951
Quote:
Originally Posted by ERD50 View Post
What about a Home Equity Loan or Line of Credit? Our CU is currently offering 6% loans, and 3.25% LOC (variable).
........................

-ERD50
I agree an HEL is a better option if you can use it and Penfed has something called an "Education Home Equity Loan"- Not sure how they could be different from any other home equity loan. Unfortunately, HEL is not presently an option for us.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Old 07-02-2009, 04:58 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Sep 2005
Location: Northern IL
Posts: 18,288
Quote:
Originally Posted by jazz4cash View Post
I agree an HEL is a better option if you can use it and Penfed has something called an "Education Home Equity Loan"- Not sure how they could be different from any other home equity loan. Unfortunately, HEL is not presently an option for us.
Interesting that they distinguish. I checked again, our CU just has some general statement that says the home equity loan/LOC can be used for home improvements, higher education as a couple examples. Since the loan is collateralized, I *guess* they don't really care what you do with it.

The same CU has separate private edu loans, not very attractive terms, IMO - 6% floor variable.

-ERD50
__________________
ERD50 is online now   Reply With Quote
Old 07-02-2009, 08:09 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 2,951
Upon further examination, I think I mis-spoke wrt the Education Home Equity Loan...they simply list HEL as an option under general heading of "Education Loans"
__________________

__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Education Loans: Stafford-vs-Private wrigley FIRE and Money 1 06-17-2009 09:22 AM
Some questions on PenFed RDamien FIRE and Money 7 07-10-2008 11:03 PM
What is your opinion of PenFed? wildcat FIRE and Money 63 07-10-2007 12:40 PM
PenFed qbkatran FIRE and Money 1 01-01-2006 11:17 PM
Penfed Heads-up Bob_Smith FIRE and Money 8 02-26-2004 02:33 PM

 

 
All times are GMT -6. The time now is 05:05 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.