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TheWiz 
LSU Fan
NOLA
Member since Aug 2007
6528 posts
| Personal Loan Rates, What to expect (Posted on 11/13/12 at 11:47 am)
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?
This post was edited on 11/13 at 12:18 pm
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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
63174 posts
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| re: Personal Loan Rates, What to expect (Posted on 11/13/12 at 11:58 am to TheWiz)
No collateral? Just personal guarantees?
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Breadcrumbs
LSU Fan
Baton Rouge
Member since May 2005
2792 posts
| re: Personal Loan Rates, What to expect (Posted on 11/13/12 at 11:58 am to TheWiz)
what rate do you have already? isn't student loan interest deductible?
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mglsu21
LSU Fan
Baton Rouge
Member since Jun 2012
137 posts
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| re: Personal Loan Rates, What to expect (Posted on 11/13/12 at 12:03 pm to TheWiz)
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.
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TheWiz
LSU Fan
NOLA
Member since Aug 2007
6528 posts
| re: Personal Loan Rates, What to expect (Posted on 11/13/12 at 12:03 pm to LSURussian)
quote:
No collateral? Just personal guarantees?
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.
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TheWiz
LSU Fan
NOLA
Member since Aug 2007
6528 posts
| re: Personal Loan Rates, What to expect (Posted on 11/13/12 at 12:05 pm to mglsu21)
quote:
balance would be relatively high (10k or more).
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
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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
63174 posts
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| re: Personal Loan Rates, What to expect (Posted on 11/13/12 at 12:33 pm to TheWiz)
quote:
Student loans are at a 6.8% rate. F that.
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.
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tigeralum06
LSU Fan
Member since Oct 2007
1278 posts
| re: Personal Loan Rates, What to expect (Posted on 11/13/12 at 1:20 pm to LSURussian)
The deduction will be phased out very quickly for an MD.
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TheWiz
LSU Fan
NOLA
Member since Aug 2007
6528 posts
| re: Personal Loan Rates, What to expect (Posted on 11/13/12 at 1:27 pm to LSURussian)
I'm curious to see what options he is going to give us.
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yellowfin 
Illinois Fan
Paige is Pretty
Member since May 2006
51806 posts
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| re: Personal Loan Rates, What to expect (Posted on 11/13/12 at 1:47 pm to TheWiz)
quote:
. Student loans are at a 6.8% rate. F that.
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
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TheWiz
LSU Fan
NOLA
Member since Aug 2007
6528 posts
| re: Personal Loan Rates, What to expect (Posted on 11/13/12 at 2:25 pm to yellowfin)
quote:
You aren't going to be able to deduct your interest anymore
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.
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foshizzle
LSU Fan
Member since Mar 2008
25097 posts
| re: Personal Loan Rates, What to expect (Posted on 11/13/12 at 2:58 pm to TheWiz)
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:
we're talking $248,000
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TheWiz
LSU Fan
NOLA
Member since Aug 2007
6528 posts
| re: Personal Loan Rates, What to expect (Posted on 11/13/12 at 3:04 pm to foshizzle)
quote:
we're talking $248,000
Yeah, it's not glorious, but should be very easy to manage. Especially if she still specializes after residency.
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Bayou Tiger
LSU Fan
The Woodlands, TX
Member since Nov 2003
2938 posts
| re: Personal Loan Rates, What to expect (Posted on 11/13/12 at 8:18 pm to yellowfin)
I thought Obama was going to take care of those student loan interest rates. When does all of that go into effect?
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LSUSUPERSTAR
LSU Fan
Arlington, TX
Member since Jan 2005
8707 posts
| re: Personal Loan Rates, What to expect (Posted on 11/13/12 at 8:38 pm to Bayou Tiger)
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.
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lnomm34 
USA Fan
Mississippi
Member since Oct 2009
7429 posts
| re: Personal Loan Rates, What to expect (Posted on 11/13/12 at 8:51 pm to TheWiz)
quote:
the lender does tens of millions of $ worth of busines with my FIL
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
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TheWiz
LSU Fan
NOLA
Member since Aug 2007
6528 posts
| re: Personal Loan Rates, What to expect (Posted on 11/13/12 at 9:02 pm to lnomm34)
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.
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saderade 
New Orleans Saints Fan
America's City
Member since Jul 2005
19691 posts
| re: Personal Loan Rates, What to expect (Posted on 11/13/12 at 9:20 pm to yellowfin)
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
Exactly, I would be very surprised if your rate was better.
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weaglebeagle 
Auburn Fan
Alabama
Member since Jan 2011
1097 posts
| re: Personal Loan Rates, What to expect (Posted on 11/14/12 at 6:47 am to saderade)
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.
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yellowfin
Illinois Fan
Paige is Pretty
Member since May 2006
51806 posts
Online
| re: Personal Loan Rates, What to expect (Posted on 11/14/12 at 9:13 am to TheWiz)
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
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