Private Loans for Low-Risk Student

Paying for College
1

Currently a junior at a semi-target.

I am majoring in finance, have a 3.96, and am a member of my school’s honors finance program. The program is remarkably selective and has a 100% placement rate, typically in investment banking and private equity, with a median salary (+bonus) of ~$100k.

I need a ~$10k bridge for the year ($5k/semester), are there lenders who give preferential rates to low-risk students? It only makes sense to lower rates with lower risk, but I haven’t found anything yet and the lower-rate federal loans that I qualify for compound daily upon graduation.

2

But it doesn’t make as much money for the lender.

3

Undergrad doesn’t seem to have a “low risk” factor like say med school does.

Banks arent savvy enough to know the details about how certain colleges may have majors where grads have high placement rates.

I’ve never even heard that banks will lend to MIT undergrads or Cal Tech undergrads who could be walking into very high paying positions.

4

<<<need a="" ~$10k="" bridge="" for="" the="" year="" ($5k="" semester),="">>>

So you need $5k for the current semester? How were you intending to pay for this semester? Did you start school this semester knowing that you didn’t have all funds?

How did you pay for the past two years?

Are your parents help paying? No one will cosign?

Have you looked into coops for spring semester?

See if Sallie Mae will lend that amount without a cosigner.

Are you working part-time and saving?

5
  • Unforeseen circumstances changed my financial position in the past two months, I had expected to be able to pay
  • Past years were paid through savings from working a union construction job for 2 years after graduating high school & working during school
  • Parents would cosign, but can't provide cash
  • I work odd-jobs on the side when I can, but the nature of the honors program (heavy course load of advanced courses reserved exclusively for program members with a requirement to get As in all courses or be immediately exited from the program) and investment banking recruiting (Typical week of recruiting consumes 15-20 hours of time, certain weeks can involve flying to multiple cities for interviews and require significantly more time) doesn't allow for a regular job

Will look into Sallie.

Thanks.

6

All private loans have interest compounding immediately, although payments aren’t required until after graduation. If you qualify for a loan where the government pays the interest while you are in school, there is no better deal.

Actually, the federal direct student loan program is almost always the best deal even if you don’t qualify for an interest subsidy.

Before taking any loan, have you tried talking to the financial aid office about your new circumstances to make sure they can’t help you in any way?

7

You should take the $7500 direct loan first. It will always be the best overall deal (and usually the lowest interest rate, even if it is the same rate for someone majoring in finance and someone majoring in underwater basket weaving).

SoFi does have preferred rates for grads with good jobs, but I don’t know if they give those rates to undergrads.

I think the answer to your question is no, no preferred rates, but there are some private loans that are better than others. It will most likely base the rate on the credit qualifications of the borrow/co-borrower (parents).