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
–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.
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