Private student loans after FAFSA - which companies are trustworthy for covering the gap?

went wth Sallie Mae last year to cover my gap and REGRET IT!!!! their interest rate jumped after 6 months and customer service is TERRIBLE when i tried to ask why. Just got an automated message saying 'thats in your terms' but nobody would explain which term exactly changed

I've had to use private loans for three years now after exhausting my federal options. The key factors to compare are: 1. Interest rates (fixed vs. variable) 2. Origination fees 3. Repayment options 4. Deferment options while in school 5. Co-signer release terms I've used Earnest for two years and have been satisfied with their transparency. College Ave was decent too. I'd recommend getting quotes from 3-4 lenders and comparing their terms side by side. The differences can add thousands to your total repayment. As for timing, I always borrow for the full academic year rather than semester by semester. It simplifies the paperwork and usually gives you slightly better terms since you're borrowing a larger amount at once.

My daughter had good experience with Discover student loans. No origination fees and they gave her a 1% cashback for good grades. Make sure whoever is co-signing has good credit because that REALLY affects your interest rate!

Have you checked with your school's financial aid office about payment plans? Sometimes you can spread the gap payments throughout the semester instead of taking a loan. Also, always borrow for the whole year at once - it's one credit check instead of multiple hits to your credit score. If you must go with private loans, I'd suggest avoiding variable rate loans right now since interest rates are volatile. And watch out for lenders who advertise low rates but then add origination fees that basically offset any savings. Lastly, have you maxed out your Parent PLUS loan eligibility? That's often a better option than private loans if your parents are willing.

i got a sallie mae loan last fall and its been fine for me. interest rate is high but thats just how it is now i think. they gave me $500 for referring my roommate too lol

I had to deal with this same situation last year!! So frustrating that even after filling out FAFSA and getting federal loans there's still a huge gap. I ended up going with SoFi because my brother had used them before, but I'm kinda regretting it now because they're not great with customer service when things go wrong. One thing I wish I knew before - apply to a bunch of places within a 14-day window and it only counts as ONE hard inquiry on your credit instead of multiple!! The financial aid office never told me this and I spread out my applications which totally tanked my score.

Have you tried calling Federal Student Aid to see if there are any additional grant programs you might qualify for? Sometimes there are state-specific or program-specific grants that don't automatically show up when you complete FAFSA. I was in your same situation last year and found an additional $3,500 in grants just by asking the right questions. I spent DAYS trying to get through on their phone lines though. Eventually I used this service called Claimyr (claimyr.com) that got me past the wait times and connected to an actual human at FSA who was super helpful. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ Definitely worth trying before taking on private loans.

Whatever you do, GET EVERYTHING IN WRITING and read ALL the fine print!!! My brother got completely screwed over by Citizens Bank - they promised him one rate on the phone but the actual loan documents had a much higher variable rate buried in page 18 of the terms. Also be super careful about "forbearance" options - some private lenders will let you postpone payments if you have financial hardship but STILL CHARGE INTEREST that gets added to your principal. So you end up owing way more in the long run.

Oh and to answer your other question - DEFINITELY do the whole year at once! Each loan application is another hard inquiry on your credit report, plus most lenders have minimum loan amounts (like $1000 or $1500) so you might end up having to borrow more than you need if you go semester by semester.

After getting input from several people here, I'd suggest you make a spreadsheet to compare your options. Here's what to include for each lender: - Interest rate (noting if fixed or variable) - Any rate discounts for autopay or good grades - Origination fees - Repayment terms (years) - Monthly payment amount - TOTAL amount paid over life of loan - Deferment/forbearance options - Co-signer release timeline - Customer service ratings (check Consumer Affairs website) When I did this comparison, the differences between lenders added up to over $4,000 in total repayment costs for a $10,000 loan. So it's definitely worth your time to research thoroughly.