Why was the quoted loan rate so high for a college student?
I was pretty shocked when applying for a college private student loan for my daughter that even with me as a co-signer, they wanted to charge 10%, with a 3% origination fee!! Does anyone have any idea if it could have been because my credit rating is only about 722, down from 745, or was it just because of my daughter being a college student with no job? In any case, I’m trying to improve my credit rating by not having any charges with a balance near the limit. I’m thinking that this will be essential to get student loans at a decent rate. I guess I’ll put in for my free credit report right now to get the story on why it recently decreased by 20 points (according to the Wamu website). I haven’t really done anything recently that would have caused that that I know of. Later addendum: I am happy to say that Discover came through with an excellent rate, about half of Chase’s!!! It sure pays to shop around – too often I think “they’re all the same” – definitely not true.
