Student Loans

[Phil Hellmuth]

I am applying for $10,000 in student loans and need a little help/guidence. What is the major difference between government loans and private loans? Is their a website that shows the best rates and how to apply for them? Any more advice would be a appreciated as I don't want to sign up for the first loan and realize that their were better rates to be had. Thank you.

 

[hornian]

Federal loans are often subsidized, meaning the Govt. pays for the interest while you're in school. Often, but not always.

And if you want to consolidate your loans after you graduate, they have to be Federal loans, you can't consolidate private loans, AFAIK.

 

[TXSooner518]

Just wanted to confirm what hornian said.

 

[txeconomist]

My brother saved a lot of money using fed loans. When he consolidated the loans they took of like 500-1000 dollars. And, after the balance was less than 1000, they waived the rest($1000).

 

[Anastasis]

Gov't stafford laons can come subsidized or unsubsidized. I always take all the subsidized loans they offer me. It's "free" money if they are going to pay the interest. If you still need more than they will probably also offer you an unsubsidized amount. You got to pick up the interest on these, or you can let it roll into the principle.

For gov't secured loans you have to fill out a FAFSA and go thru the Financial Aid department, not sure how that works with private loans.

 

[gunnerhorn]

sell your house