the Cost of Personal Loans

My loan was a supplemental student loan. I am a law student just finishing up and about to take the bar exam. The loan was to take care of bar exam expenses, so it was a private personal student loan as opposed to a student loan through my school. The loan amounted to $7,500 and the interest rate that my bank gave me was 7.5%. So the cost that I reported was $562.50 (rounded up to $563) which represents the interest on my loan at 7.5% x the $7,500. It is tough to tell exactly because I am not sure what the repayment will be. It is set at a 30-year repayment but I have the option to pay quicker, which I am sure I will.

I was happy to be able to get the money. I would not have been able to really make it without it, so I am just happy to have the opportunity to be able to be approved to get the money. I am not happy about paying interest but I would much rather pay 7.5% for a student loan than a higher rate for some other loan. Plus I figure if I can make more than 7.5% on my other money investing it, it makes sense to borrow at 7.5% if I can make 15% on it. Something to think about. All in all, I cannot complain with the loan and was happy with it.

My only tip that I can think of is to take some time shopping around looking for the best rate. Also, take a fixed rate loan and not an adjustable rate one. Just like home mortgages, an adjustable rate student loan will surely rip you off!