Paying for College
Caught in the Middle
LoansBeyond the federal loan programs (including Perkins, Stafford, and PLUS loans), there are other private sources of loans for college. In light of the current highly publicized credit crunch, the number of private loans available, and the provisions for them, are changing. As a result, it is very important to compare interest rates, fees, repayment policies and customer service options before making any final decisions. Furthermore, students should remember to maximize federal loan options first, as they typically carry more favorable rates and repayment options. Also, talk with the financial aid offices at the colleges to see if they have negotiated any preferred rates with private lenders, if additional loan money is necessary. Historically, private education loans have carried lower interest rates than many other types of commercial loans, and have had policies that do not require repayment until the student graduates or drops below half-time enrollment. However, this is not true across the board today in light of current loan markets. As a result, it is very important to research the options and make well-informed decisions. |
