momwithhope

I decided to go with Discover for my Parent Plus due to minimum fees and 8.25% rate. However, when I got to the electronic e-signing of the loan and I printed out the MPN and Borrower's Rights and Responsibilities it states 8.5%. I have called them twice. The first time I was to get an email stating the rate was 8.25% which I never received. Second time I was told they could not send me anything regarding rate. They pointed out that it says on their website the rate is 8.25%, but that is not the legal document! I was told after the loan had been approved I would receive a "Truth in Lending" statement which would have the correct rate.
The fact that they will not confirm their rate in writing makes me nervous. Am I just overreacting?

Debruns

I would be careful, I have seen that before. I remember seeing consoladation loans advertised on sites when they were no longer doing it because they hadn't updated it yet.
Was this rate for direct deposit? When I did NJClass, the amount was supposed to be about 1/2 percentage lower but it wasn't reflected in my initial paperwork. She said that would be a seperate document and it was changed later.

Erin's Dad

I think the difference may be in the 0.25% discount you get if you have the loan amount paid automatically from your bank account.

momwithhope

They do state on their website the rate is 8.25% and in addition list the reduction of .25%. Both times I called they did state the rate was 8.25%. The bolierplate MPN and refusal to put rate in writing are what bother me.
Does anyone know which prevails in case of discrepency- MPN or Disclosure/Truth in Lending? Discover is a large and (I thought) reputable company so I am surprised by this.

sueinphilly

<<0.25% repayment interest rate credit when payments are set up for automatic debit from a bank account >>

I don't know how this works. It doesn't sound like the overall rate is lowered from 8.5 to 8.25, but that somehow that when you do the repayment thru direct debit, they credit this back to you. I'm sure a banker will chime in and explain what I don't understand

momwithhope

I just called Discover and they said that if you do the auto payment the rate would actually be 8.00% (8.25 minus .25). As they have no fees I will probably go with them. I just hope what they say about rates actually happens!

Jolynne Smyth

I think we're going w/Discover.

Anyone have any more good/bad info? Calling tonight to finalize...! :-)

sk8rmom

Jolynne, search for a thread by LaMas - she just did a Discover loan and got a very good rate, I think. It may be on the parents forum.

Jolynne Smyth

Thanks, sk8mom!! :-)