What's the best type of Student Loan?
Asked by music.loverI'm planning to go to college, so its a exciting and stressful time for me and my parents. I've received some scholarship money, but its not enough. If it comes down to it and I might need a student loan. Which one is the best for me and my family. I don't want to be ripped off, pretty much. Thanks for your help.
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Answered by Sallie Mae
In general you want to pay for as much as you can with federal student loans (Stafford for you, PLUS for your parents). Federal loans typically have the lowest interest rates and most generous repayment terms. If you are now a senior in HS, start now by filling out your FAFSA: www.fafsa.ed.gov If you still need more money once you've reached the federal loan limits, then get private student loans. Private loans are available from banks, credit unions, etc. and are credit-based. As always, borrow only what you need, as you will have to pay it all back eventually. Here's some more info for you: Stafford loans www.salliemae.com/get_student_loan/find_student_loan/undergrad_student_loan/federal_student_loans/stafford_loans/ Plus loans www.salliemae.com/get_student_loan/find_student_loan/parent_loans/plus/ Information on borrowing wisely for college: www.salliemae.com/before_college/planning-wisely/debtsmart/before_borrow/before_borrow.htm
In general you want to pay for as much as you can with federal student loans (Stafford for you, PLUS for your parents). Federal loans typically have the lowest interest rates and most generous repayment terms. If you are now a senior in HS, start now by filling out your FAFSA: www.fafsa.ed.gov If you still need more money once you've reached the federal loan limits, then get private student loans. Private loans are available from banks, credit unions, etc. and are credit-based. As always, borrow only what you need, as you will have to pay it all back eventually. Here's some more info for you: Stafford loans www.salliemae.com/get_student_loan/find_student_loan/undergrad_student_loan/federal_student_loans/stafford_loans/ Plus loans www.salliemae.com/get_student_loan/find_student_loan/parent_loans/plus/ Information on borrowing wisely for college: www.salliemae.com/before_college/planning-wisely/debtsmart/before_borrow/before_borrow.htm
