Are private school loans a good option for me and my professional master's program? Any other suggestions?
I’m looking for some advice and input regarding private student loans for a professional masters degree. The program is a Master’s in Industrial/Organizational Psychology
offered through Colorado State University online and designed for professional working full time. I am not formally enrolled in the program as of yet but they offer admission to several professional certificate programs. I completed The Organizational Design certification and have enrolled in The Performance Management certificate.
This program is extremely applicable to career development and advancement. I am very impressed so far. It’s basically a manual for working in consulting or HR.
My background and story is that I have not worked in 9 months by my own volition and have been doing some travelling abroad. My resume is strong. I have managed the development of several major consumer electronics brands throughout South America. I currently have a line and inside track on two job opportunities and have been delaying my search waiting for one of these to finally open up. Also, my current plan is to focus on completing all the GRE requirements and an undergrad prerequisite while also really getting my Spanish to a really high level.
In the mean time I have been living off my savings but they have dwindled quite a bit and I want to maintain some backup funds to be safe.
I would like to take out some loans as this program is not horribly expensive but is not exactly cheap. I need to take 26 more credits at a cost of about $600 a credit. The total remaining tab should be about $16,000 and I have put 3 of the classes on a credit card. So including this debt and the loans I will need about $26,000 to pay the current balance and future courses. I am not terribly concerned about making future payments. I am not just coming out of school with no experience and I have made pretty decent money in my last job. $60-80,000 annually. Part of the reason I resigned was that this is a little low for the position. So I should be able to pay off the loans pretty quickly and probably won’t need the loans for more than the next few semesters. Also my credit is impeccable, about 800.
I don’t have any car payments (or a car), Wells Fargo holds my mortgage which is being covered by renting it out. The best part is I have the opportunity to live in a South American country with a relatively low cost of living and can even move to another country that is even more affordable. I can live here pretty comfortable on about $35,000 annually. I maintain an address and residency through my home in CO.
I got approved for $20,000 with my FAFSA, but I can’t get any federal loans as without formal admission I don’t qualify for it. So I am looking at the private options. Here are the two I have been looking at.
– They offer a standard fixed rate of 7.9% and but can go as low as 5.74%. I know there have been some complaints about this company but several years ago.
– They offer fixed rates as low as 6.65%. They also hold my mortgage and this might be an advantage. They offered deferred payment options but only offer to pay up to the cost of the tuition not any other living expenses.
I don’t think I want a variable interest loan.
Is it a good idea to apply for both and see which provides the best rate?
Is there somewhere else I should be looking?
Is there anything else I am not considering?
Any other thoughts or input?
Thanks everybody. I appreciate it.