Federal student loans are great EXCEPT when the market goes down. For example, now the fixed rate of PLUS loans is 8.5% and for Stafford Loans 6.8% (if the loan is unsubsidized).
So, private loans may be the answer. But you should shop around. Things to ask about and consider in addition to rates and fees are
–originations fees,
–how often the interest is compounded, and
–how soon the loan comes due after graduation.
For other ways to maximize your money to pay for college see CollegeBasics’ article “Choosing the Right Student Loan.”
This information is based on Joanne Kwan’s guest post at CollegeBasics. Joanne is a writer for Premier Student Loans.
—————————————————–
NEWS! CollegeBasics now has a new e-book The Basics for Writing College Application Essays: Simple How-to Steps for Writing All College Essays from the Personal Statement to the Short Activity Essay that outlines every aspect of writing the college application essay. This book explains how to write different kinds of application essays from the short activity essay to the personal statement to scholarship essays and more and offers samples of essays and essay edits. This book can really help you.
