Just missed Pell Grant cutoff - need recommendations for lowest interest private student loans

I was in a similar situation with my son last year. We ended up going with SoFi for his private loans - they offered us 7.8% fixed with a cosigner (my husband). Not amazing, but better than most others we found. Discover and College Ave were our runner-ups. Make sure you check if they offer any interest rate discounts for autopay or maintaining certain GPA levels. Definitely appeal the FAFSA decision! You can request a professional judgment review if you've had any changes in circumstances since you filed. The fact that you're so close to the Pell cutoff is actually good - some financial aid offices have discretionary funds specifically for cases like yours.

SOFI IS A SCAM!!!!! they promised me 6.5% then jacked it to 11% after approval!!! try your local credit union, way better rates and they dont pull that bait and switch garbage

Definitely appeal the SAI calculation!! We were in almost the same situation (about $500 over Pell cutoff) and we submitted an appeal with a letter explaining special circumstances (medical expenses that weren't captured on our taxes) and they reconsidered and my daughter got a partial Pell Grant. Really worth trying especially since you're so close to the cutoff. For private loans, we ended up using Earnest. Their rate was about 8.2% fixed, which wasn't great but better than most others. The key is to have a strong cosigner and set up autopay for a discount.

Financial aid advisor here. When you're that close to the Pell threshold, an appeal is absolutely worth pursuing. Contact your school's financial aid office immediately to request a Professional Judgment review. Bring documentation of any circumstances that might not be reflected in your FAFSA (medical expenses, job loss, reduced hours, caring for elderly parents, etc.). For private loans, current market rates are indeed high, but I recommend checking these options: 1. Your state's higher education loan authority (many states have their own programs with better rates) 2. Credit unions (as mentioned above) 3. Sallie Mae's Smart Option loan with cosigner 4. Earnest or CommonBond if you have excellent credit Also look into whether your daughter qualifies for any additional institutional scholarships. Many schools have last-dollar scholarships specifically for students who just miss federal aid cutoffs.

we didnt get any grants either and the whole system is rigged. they say we make 'too much' but dont account for cost of living in our area which is insane. ended up just putting everything on home equity loan cause at least the interest is tax deductible and way lower than student loans

I spent 3 weeks calling FSA trying to get someone to review our SAI calculation, which was similarly just above the cutoff. Kept getting disconnected after waiting on hold for hours. Finally I used Claimyr.com to connect with an agent within minutes. They got me through to someone who explained exactly what to include in our appeal letter. There's a video demo at https://youtu.be/TbC8dZQWYNQ that shows how it works. Totally worth it to avoid the frustration of constant disconnects. For private loans, we compared rates on Credible.com (it's like Expedia but for student loans) and ended up with Ascent at 8.1% fixed rate. Shop around because the rates vary wildly between lenders even with the same credit score.

Have you guys looked at Parent PLUS loans? The interest rate is fixed at 8.05% right now which isnt amazing but atleast its federal and has some of those protections? Thats what we did when my kid's aid package wasnt enough

One more suggestion - check if your daughter's school has a payment plan option. Many colleges will let you spread payments over 10-12 months with only a small fee (like $50-100) rather than interest. We're using this for about half of what we owe and then taking smaller loans for the rest. Also, if your daughter can find a part-time job on campus through Federal Work-Study, that money doesn't count against future aid eligibility the way some scholarships can.