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| Personal Loan Rates, What to expect Posted by TheWiz My wife and I are looking into getting a personal loan to consolidate our student loan debt. It will be backed by my F-I-L. The lender we are using does most of his commercial loans, and is very familiar with all of us. What type of rate can I expect to get?  on 11/13 at 11:47 amThis post was edited on 11/13 at 12:18 pm Reply • Back to Top |
| No collateral? Just personal guarantees? Reply • Back to Top |
| what rate do you have already? isn't student loan interest deductible? Reply • Back to Top |
| It fully depends on the lender, but most financial institutions have cancelled their personal loan programs....Chase, Capital One, etc. You almost have to go to a credit union for unsecured loans now. And if you are consolidating student loans I would assume that the unsecured balance would be relatively high (10k or more). Most lenders want collateral for 10k+ these days. I got an unsecured loan for 8.4% recently, and I was very happy to get it that low. The few places that still offer them were all around double digit interest rate best case scenario. Reply • Back to Top |
quote: The lender is working up a couple of scenarios for us right now. They have all of my mortgage info. I assume a secured loan would yield a better rate than an unsecured. Student loans are at a 6.8% rate. F that. Reply • Back to Top |
quote: Yeah, we're talking $248,000. Wife just graduated Med School. I just finished with my MBA and a little bit left over from undergrad. Like I said, the lender does tens of millions of $ worth of busines with my FIL, so they know we should be covered with him backing us. This post was edited on 11/13 at 12:10 pm Reply • Back to Top |
quote:I doubt you'll be able to do much better than that without getting a first mortgage on real estate. If it's unsecured you will also lose the deduction for interest which you have on student loans up to a maximum amount of $2,500 as I recall. Reply • Back to Top |
| The deduction will be phased out very quickly for an MD. Reply • Back to Top |
| I'm curious to see what options he is going to give us. Reply • Back to Top |
quote: You aren't going to get an unsecured personal loan for less than that You aren't going to be able to deduct your interest anymore Reply • Back to Top |
quote: We're already on a prorated deduction. Hopefully after I finish my MBA, I'll be at a higher income level; however, it will likely leave us unable to take any deductions on student loan interest. Reply • Back to Top |
Student loans are almost always lower than personal unsecured everything else being equal. The only advantage I could see is if you planned to default, b/c student loans are not discharged by bankruptcy. quote:  Reply • Back to Top |
quote: Yeah, it's not glorious, but should be very easy to manage. Especially if she still specializes after residency. Reply • Back to Top |
| I thought Obama was going to take care of those student loan interest rates. When does all of that go into effect? Reply • Back to Top |
| I'm waiting on my Obama Bucks for our student loans. Hell, I would just be happy with lower rates. Our highest rate is 6.125. We have 6 figures in loans. Reply • Back to Top |
quote: Dude, a cool quarter mill shouldn't be a problem for him, then! Get your FIL to just wipe those suckers out!  This post was edited on 11/13 at 8:52 pm Reply • Back to Top |
| I wish. He's weird about stuff like that. He's an old, I earned mine the hard way kinda guy. It sucks because I know he could do it without batting an eye. Reply • Back to Top |
quote:Exactly, I would be very surprised if your rate was better. Reply • Back to Top |
| If I were in your shoes I'd just stick with the student loans since that is likely the best rate you will get and just put all of my focus on paying them off as soon as possible. If your father in law won't just give you the money, would he consider giving you a personal loan? I'm guessing the answer is no since you didn't mention that as an option. Reply • Back to Top |
| If he has any cash in CDs or savings accounts he's lucky to be making 1% so tell him you'll split the different @ 3.5% and you both win Reply • Back to Top • Refresh |
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