Private Loans! Private vs. Fed, Interest Rates, Experience? Forum

[AlexFergusonLS]

Hi all,

I'm looking to attend a T6 next year at sticker. I can't really retake for more aid (high 17x score, but low GPA), and I can't attend a lower T14 with a big scholarship (splitter with no big awards in lower T14).

Therefore, I'm looking to hit biglaw and pay off the loans as aggressively as possible.

I was looking into the potentially lower interest rates of private loans. I had a couple questions for the hivemind

1. Does anyone have good arguments for federal vs. private, especially given that the plan is biglaw not PI?

2. Does anyone know the lowest interest rates? Anyone have good arguments for variable, with some links/research or econ background to explain the "LIBOR" stuff to me?

3. Anyone have experience with private loans, good or bad, that they'd like to share?

Thanks!

[lymenheimer]

Well...gov loans are guaranteed (essentially) and you get hella protections while you are in school/if you don't get biglaw. No way would i risk losing deferment, paye, pslf, etc for a lower interest rate without having a job. As far as rates go. That depends on you. Refi rates can be super good, but thats also because those people have a job. With you with no job, i'd imagine they'd pad their risk and you'd end up not too far behind the gov rates anyways.

[Hennessy]

Hi all,

I'm looking to attend a T6 next year at sticker. I can't really retake for more aid (high 17x score, but low GPA), and I can't attend a lower T14 with a big scholarship (splitter with no big awards in lower T14).

Therefore, I'm looking to hit biglaw and pay off the loans as aggressively as possible.

I was looking into the potentially lower interest rates of private loans. I had a couple questions for the hivemind

1. Does anyone have good arguments for federal vs. private, especially given that the plan is biglaw not PI?

2. Does anyone know the lowest interest rates? Anyone have good arguments for variable, with some links/research or econ background to explain the "LIBOR" stuff to me?

3. Anyone have experience with private loans, good or bad, that they'd like to share?

Thanks!

1. Private loans cannot be put on income-driven student loans repayment plans, and are not eligible for public service loan forgiveness. If you are very confident you can attain biglaw, and aggressively pay down your debt in 4-5 years, the only upside to a private loan would be the lower interest accumulation over 3-8 years (which could be a large amount.)

However, lets say you get pushed out as a 3rd-year, or you are exhausted as a 2nd-year and you're looking to lateral. Lets say you don't land biglaw at all. You're going to miss out on the opportunity to refinance those private loans through Fed plans, and you lose any possibility of loan forgiveness.

I imagine if you do attend a T6 you have a stellar shot at biglaw, but it's still a very large risk to take.

2. For god's sake, don't take anything with a variable rate of interest if you're going to be paying it back over +10 years.

3. You'll see a lot of support here for SoFi, definitely worth researching.

here, you should read this whole thread: http://www.top-law-schools.com/forums/v ... 3&t=220025