Student loans. Nobody
wants them, but most people need them. The
information can be overwhelming and confusing.
Subsidized, unsubsidized, PLUS – what does it all mean?
Regarding interest rates, ever wonder why the interest rates
are the way they are? I recently read a
good article that helps summarize how interest rates are set, and why they
change. Here is a link to the
article: https://studentloanhero.com/featured/factors-that-affect-interest-rates/
And, in case you’re wondering, interest rates will be going
up next school year. For the Federal
Stafford loans, undergraduate students borrowed at a 3.76% fixed rate for the
2016-2017 school year. For the 2017-2018
school year, rates will jump to 4.45%.
Rates are going up, but we still would recommend for
students that need to borrow for college, federal loans are probably a better
option than most private loan options.
The federal Stafford loans offer relatively low, fixed rates, and do not
require a co-signer. Most private loans
for students will require a co-signer, and rates may even be higher than
federal rates.
If you have loan questions, give us a call and set up a time
to come in and talk about your options.
