How can I find the best route to choose a student loan?
Asked by stacysue44We are using a Parent Plus Loan through Sallie mae right now. The costs are skyrocketing after only 2 yrs. We would like to know if it is better for the student to apply or is there somewhere we can apply as parents and consolidate. Is there a lender out there who can make this more affordable. If anyone can pass on any info that will make sense to us, we'd greatly appreciate it. Thank you
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Answered by Sallie Mae
PLUS loans do not have variable interest rates, they are fixed and are set by the government so every lender will have the same rate. You can consolidate your PLUS loan at any time. This will allow you to extend your repayment term, thus lowering your monthly payment. However, if you pay the minimum each month you will end up paying more interest over the life of the loan, just like a credit card. Best idea is to call Sallie Mae and discuss consolidation/repayment options to find a plan that will work for you. www.salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/federal/facts/consolidation_plus.htm
PLUS loans do not have variable interest rates, they are fixed and are set by the government so every lender will have the same rate. You can consolidate your PLUS loan at any time. This will allow you to extend your repayment term, thus lowering your monthly payment. However, if you pay the minimum each month you will end up paying more interest over the life of the loan, just like a credit card. Best idea is to call Sallie Mae and discuss consolidation/repayment options to find a plan that will work for you. www.salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/federal/facts/consolidation_plus.htm
