Financial Aid- Which Student Loans??
Asked by mang0kiwiI got a letter in the mail today describing my financial aid that my school will give me. I guess i will need to take out some loans since I do not have the money to pay for it, but all of the loans they provide (Stafford, Student PLUS etc) all have extremely high interest rates 7-8.5%. Is this normal? Is there any other decent place where I can borrow money for a lot cheaper?? Also, should I take the loan out in my name, or my parents name? My parents will contribute less than $3000 to my education, and I will have to pay the majority of it. Thank you
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Answered by aewade1
I'm not sure about the first question, except to say you should call the school to see if they can recommend some. They usually have preferred loans that they trust for their students. Also, if you get a loan in your name, you won't have to start paying until 6 months after graduation. However, if your parents take out the loan, most likely they will have to start paying once the full amount of the first loan is disbursed. (Meaning if you have a Fall and Spring loan, they'll have to start paying the summer after that academic year.) However, if your parents apply for a PLUS loan and are rejected, you'll be entitled to more unsubsidized Stafford money, which has a lower interest rate.
I'm not sure about the first question, except to say you should call the school to see if they can recommend some. They usually have preferred loans that they trust for their students. Also, if you get a loan in your name, you won't have to start paying until 6 months after graduation. However, if your parents take out the loan, most likely they will have to start paying once the full amount of the first loan is disbursed. (Meaning if you have a Fall and Spring loan, they'll have to start paying the summer after that academic year.) However, if your parents apply for a PLUS loan and are rejected, you'll be entitled to more unsubsidized Stafford money, which has a lower interest rate.
