Student Loans... ???
Asked by hollydolly8103I want to get a student loan but I really don't understand all the different kinds... Can someone please help me.... What student loans are the best? What is subsidized and unsubsidized?
Favorite Answer
Answered by Mikal2007
Here's my take on the "best" types of student loans (in order, starting with the most beneficial - remember you may not be eligible for each type of loan, check with your aid office): 1. Federal Perkins. This is a need-based loan, and there is only a certain amount schools can award each year. This is a good program but may not last if Bush has his way. It's a fixed 5% rate, you don't begin repayment (or accruing interest) until 9 months after you leave school. 2. Subsidized Stafford (also known as FFEL). This is another Federal program, but the money comes from a lender or bank (you get to choose). The rate is 6.8%, you have a 6 month "grace period" after you leave school. Subsidized means you don't pay any interest while you are in school - the gov't pays it for you. 3. Unsubsidized Stafford. It's the same kind of Stafford Loan as above, but in this case YOu are responsible for the interest while you are in school. You can either add it to your principle or make payments on it throughout the time you are in school (which is my advice). 4. the PLUS loan is a loan your parents can take out. I'm not as familiar with this program. 5. And finally as a last resort you can look at a private or alternative loan. These generally do come with the benefits or the interest rate that a federal loan would have. They are also credit based and may require a co-signer.
Here's my take on the "best" types of student loans (in order, starting with the most beneficial - remember you may not be eligible for each type of loan, check with your aid office): 1. Federal Perkins. This is a need-based loan, and there is only a certain amount schools can award each year. This is a good program but may not last if Bush has his way. It's a fixed 5% rate, you don't begin repayment (or accruing interest) until 9 months after you leave school. 2. Subsidized Stafford (also known as FFEL). This is another Federal program, but the money comes from a lender or bank (you get to choose). The rate is 6.8%, you have a 6 month "grace period" after you leave school. Subsidized means you don't pay any interest while you are in school - the gov't pays it for you. 3. Unsubsidized Stafford. It's the same kind of Stafford Loan as above, but in this case YOu are responsible for the interest while you are in school. You can either add it to your principle or make payments on it throughout the time you are in school (which is my advice). 4. the PLUS loan is a loan your parents can take out. I'm not as familiar with this program. 5. And finally as a last resort you can look at a private or alternative loan. These generally do come with the benefits or the interest rate that a federal loan would have. They are also credit based and may require a co-signer.
