Ahhh, the credit "game"! Well, since everything is pretty much based on your credit score, please let me share. Me, the dumb @ss racked up a considered amount of consumer credit card debts in undergrad days, I've been denied several times for private loans. Private Loan lenders will deny you if you don't meet their credit score minimum. After applying to numerious lenders, I finally was able to get one private loan approved! Approved is good right? Wrong, my interests on a $19K private loan was:
8.5% interests
3% on loan fees
6% on dispursement
Can we say "Holy mutha crap of ****!"
Usually with decent credit score, a student can get a private loan approved for:
4-5% interests (or lower)
0% loan fees
0% at dispursement
Luckily for me, my school had this special government loan called Health Professions Student Loans (HPSL):
The Health Professions Student Loan (HPSL) program provides a long-term, low-interest rate loans to full-time, financially needy students in specific medical programs, such as Dental Medicine. The interest rate for the HPSL loans is 5 percent fixed interest rate. Repayment of interest and principal begins 12 months after a student ceases to be enrolled full time. The repayment period is ten years. However, students may be eligible for loan deferments. To be considered for a Health Professions Student Loan, you must apply for the Free Application for Federal Student Aid(FAFSA), submit a copy of your and your parent?s prior year tax forms, and complete the HHS Application for Health Professions Student Loan and Loans for Disadvantaged Students. Once you have been approved for the loan, you must complete the HPSL promissory note and entrance interview (only required one time).
With this HPSL loan, I was able to return all my $19K 8.5% interest private loans and save a crap load of future payment on interests! This loan may or may not be available at your dental school. I guess the government has to offer it to each and individual school or something. This loan is separate and complete different from the Federal Stafford loans. This loan is great for the following people:
1) bad credit - if you want to avoid high interest private loans
2) if you're approaching the total Federal Stafford aggregate amount and you're running out of Stafford loans ($189K is the total aggregate amount you can borrow)
3) your family can not be rich
Disadvantage of this loan:
1) You don't know how much you'll be awarded, another words, you can't specify how much you need, the school will determine the appropriate amount to award you based on your tax return and your parents tax return (parents' tax returns IS REQUIRED)
2) still a tick higher than Federal Stafford and private loans in interests (but MUCH MUCH lower than private loans if your credit score is low)
3) your dental school may get this loan from the government one year and may not get it the next year, it's not guaranteed that your dental school will recieve this loan every year so you can't really rely on it to be your source to cover your private loans
To end, credit score is so important and also remember, every time you have a credit lender, including, for private school loan lenders to check your credit for a loan, your credit score will go down. Each and everytime some one pulls your credit report (credit inquiries), your credit report will decrease. For more credit score 101, visit is great site which I learn a crap load from:
http://www.myfico.com/myfico/CreditCentral.asp?fire=1
I was very fortunate to have the HPSL loan available to me! The credit "game" BLOWS!
Why is everything life judged by NUMBERS? Do you ever notice that?
- entrance criterion
- credit scores
- speed limit
- bra size
the list goes on and on and on.........
Enough of BSing for me.
