Student loan. (1 Viewer)

[xeuyrawp]

Yes, peeps, despite having put a tonne of money into a long-term deposit, I need a student loan. Don't suggest taking out the money from the deposit, it's not happening.

Fact is that I'd like around $5000-4000, and would pay it back within 5 years with my LTD coming back to me in 4.5 years.

From the little research I've done, it seems that the Commbank's rate is around 11% p/a, ANZ's is 7-8%, and St George is 10-11%. Obviously they have fees of sorts, but the student rate seems to be reduced.

I need to do these summer classes (ouchies) and get a car (just need a couple of grand more), but the bank really needs to hear that the money is 'educationally related' in order to give me the student rate.

My questions are:
- has anyone taken out a loan? What were your conclusions and tips?
- will the bank be all Private Eye Marlowe and find out that I will only use about $3000 on actual education, and about $2000 on a car? Is there a way I can 'jump through the hoops'?
- will my father being a dead-beat bankrupt affect my chances?

[edit]: When it says 10% p/a, does that mean the money compounds? Say I take 5 years to pay 5000 back, without paying a cent:

1st year: 5500,
2nd year: 6050,
3rd: 6655,
4th: 7321,
5th: 8053.

??? Paying $3000 extra would totally make me a cranky whore.

Any relevant customers, accountant, and jokesters are welcome to reply.

Thanks

 

[crazybrad]

[edit]: When it says 10% p/a, does that mean the money compounds? Say I take 5 years to pay 5000 back, without paying a cent:

1st year: 5500,
2nd year: 6050,
3rd: 6655,
4th: 7321,
5th: 8053.

??? Paying $3000 extra would totally make me a cranky whore.

Any relevant customers, accountant, and jokesters are welcome to reply.

Thanks

are there any loans that dont have conmpund interest?
banks suck, get a job or rob a bank

 

[xeuyrawp]

are there any loans that dont have conmpund interest?
banks suck, get a job or rob a bank

What is the alternative to a bank? Are there student banks...?

I had a job, and I saved up all this money. Frankly, after having like 3 in the space of a year, I really don't want another, and wouldn't mind paying 10% non-compound interest on a loan.

 

[crazybrad]

or a credit union... your uni would prob lend u money interst free upto 500, mine does (csu).
on a serious note if u can find a place that dsoes simple interest id be keen to know.
and get used to employment

 

[stazi]

sydney uni has interest free loans. check with your src

 

[xeuyrawp]

or a credit union... your uni would prob lend u money interst free upto 500, mine does (csu).

That's interesting, I'll check with them.

and get used to employment

I think I'm more used to employment than most people

sydney uni has interest free loans. check with your src

Ack, after certain entanglements (shall I say 'imperial entanglements'), I hope they don't remember me.

 

[crazybrad]

on uni lending u money, our uni lends up to 500 then our student uni will too so thats a grand interest free

 

[MiuMiu]

You will need a guarantor for your loan if you aren't working full time (and maybe still if you are)...your father being bankrupt obviously isn't going to be an acceptable guarantor.

Remember every loan you apply for from a bank or credit union, even if you are knocked back, is recorded on your credit rating...you don't want too many knock backs from banks on there so choose your applications wisely.

 

[ManlyChief]

If your father is a bankrupt that should not be a problem provided you provide security independent of him. But beware such bank loans - they are notoriously unfair.

As for the whole using $2,000 to buy a car without telling the bank ... Be careful, if there's deception involved, or - God forbid - fraud, then there may be some problems if you want to be admitted to legal practice arising under certain provisions of the Barristers' and Solicitors' Rules ... Take care you don't get you fingers burnt ...

On the subject of making money quickly, I know the Usyd is always looking for paid subjects for all sorts of medical testing ... $$$ per hour. It's not all that bad - i.e. it's not like that episode from the Simpsons where Barney is the subject of medical tests and he leaves with a colourful assortment of wires issuant from the back of his skull - most of the time it's just skin creams etc ...

Also - have you done tort$ yet? A tidy little negligence claim is always a reliable money earner ...

Hugs.

 

[poloktim]

From what I know about student loans, you're better off going with the NAB. They provide student loans of up to seven thousand dollars, interest rates are nice, also, if you can start paying off little bits once you get it, the interest rate tends to be much nicer.

When banks talk about money compounds, it's not quite as straightforward as what you put, I think. I'm sure banks compound daily, but I could be wrong there.

I suggest you take a look at the NAB site, and look at their student loans section. Then contact your local NAB regarding this. You might have to open an account there if you don't have one.

As for your deadbeat bankrupt father, ensure he's not your guarantor.

 

[xeuyrawp]

Remember every loan you apply for from a bank or credit union, even if you are knocked back, is recorded on your credit rating...you don't want too many knock backs from banks on there so choose your applications wisely.

Ah, thanks for that, mate. Useful advice

As for the whole using $2,000 to buy a car without telling the bank ... Be careful, if there's deception involved, or - God forbid - fraud, then there may be some problems if you want to be admitted to legal practice arising under certain provisions of the Barristers' and Solicitors' Rules ... Take care you don't get you fingers burnt ...

On the subject of making money quickly, I know the Usyd is always looking for paid subjects for all sorts of medical testing ... $$$ per hour. It's not all that bad - i.e. it's not like that episode from the Simpsons where Barney is the subject of medical tests and he leaves with a colourful assortment of wires issuant from the back of his skull - most of the time it's just skin creams etc ...

Also - have you done tort$ yet? A tidy little negligence claim is always a reliable money earner ...

Hugs.

The whole 'be careful of a criminal record' thing actually is useful (albeit obvious) and I hadn't thought about that.

Noone has been able to point out the 'Usyd uni medical experiments', and I'm doubting they're real as noone's seemed to be able to find how to apply.

I haven't done any law units yet, either

From what I know about student loans, you're better off going with the NAB. They provide student loans of up to seven thousand dollars, interest rates are nice, also, if you can start paying off little bits once you get it, the interest rate tends to be much nicer.

When banks talk about money compounds, it's not quite as straightforward as what you put, I think. I'm sure banks compound daily, but I could be wrong there.

I suggest you take a look at the NAB site, and look at their student loans section. Then contact your local NAB regarding this. You might have to open an account there if you don't have one.

As for your deadbeat bankrupt father, ensure he's not your guarantor.

Thanks, I'll look at the NAB site, but the compounding this is still confusing me; and if, like you say it is, it compounds daily, the interest would be even higher.

 

[poloktim]

Thanks, I'll look at the NAB site, but the compounding this is still confusing me; and if, like you say it is, it compounds daily, the interest would be even higher.

Looking at it from their perspective, the profits are higher. But student loans are often nicer on the interest rates, and have easier rules. Also, if you do pay it back, compounding daily can make a fairer amount for you.

My brother got one when he moved out for uni. Considering he's paying it off now, as well as rent, bills, and uni, he seems to be doing pretty well. If you're living at home, I'd imagine you'll be able to do better.

Good luck with it.

 

[xeuyrawp]

Thanks polo. Domo arigato gozaimashita!=)

Can someone do me a favour by confirming that I'm not insane when I say that NAB actually doesn't explictly give the interest rates for the student loan? They only talk about the personal loans. http://www.national.com.au/Personal_Finance/0,,9113,00.html

 

[ND]

Yep you're right with the compounding; if you're paying a single lump sum after 5 years, it'll be $8052.55 at an interest rate of 10% comounded annually. It doesn't matter how often it's compounded, because the interest rate is quoted at a rate compounded annually.

I know you said that you don't want to withdraw from your term deposit, but it is completely illogical not to. The cost of $3053.55 in five years time is equivalent to $2281.05 today (assuming you earn 6% on your term deposit). So if the penalty for early withdrawal is less than $2281.05 (which it almost certainly is), you should withdraw from your term deposit.

 

[xeuyrawp]

I know you said that you don't want to withdraw from your term deposit, but it is completely illogical not to. The cost of $3053.55 in five years time is equivalent to $2281.05 today (assuming you earn 6% on your term deposit). So if the penalty for early withdrawal is less than $2281.05 (which it almost certainly is), you should withdraw from your term deposit.

That's a good point, but if I take it out within the next 3.5 years, I lose a big bonus.