what kind of interest rate should i expect on a private loan for law school?

One Response to “what kind of interest rate should i expect on a private loan for law school?”

1. FinAidGrrl says:

   September 23, 2010 at 7:45 pm

   Any federal Stafford Loans made after July 1st will be at a rate of 6.8%.
   Your existing loans are at 4.7% if you are in school but will increase to 6.54% in a few weeks.

   Your private loan rate won’t be determined by your program so much as your credit…. It’s also going to vary a bit by company. With a rating of 750, you should qualify for Sallie Mae’s LAWLOAN’s highest credit tier, which gets you a rate of Prime + .5% Last I checked, Prime was at 8%. [NOTE: Sallie Mae is a tad unique in that they offer benefits for applying with a co-signer -- so this Prime +.5% rate might only be for students with co-applicants.] Anything close to Prime is a pretty good rate on a private student loan.

   Quick question… Any reason you wouldn’t apply for a PLUS Loan instead of a private loan? PLUS loans, which used to be available only to parents of undergrads, will be made available to graduate students beginning this Juy 1st. These loans are *federal,* so you can consolidate them later if you wish. The rates are set by the federal government and are currently fixed at 8.5%… However *many* (if not *most*) lenders offer significant interest rate reductions just for choosing them, so if you shop around you could obtain a PLUS at a rate as low at 7%. For these benefits, try either Sallie Mae, Citibank, or the College Board.

   http://www.salliemae.com/get_student_loan/find_student_loan/grad/grad_student_loans/grad_plus/
   https://studentloan.citibank.com/mbslcsite?op=apply_now&context=frame&app=PLG&flow=direct&exception=ffelp
   [College Board site isn't up yet, but they're been advertising a rate of 7%]

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