I need info on student loans, federal or private. Which ones tend to have lower interest rates?
I am going to go to University of Montana in the fall of 2009 and I need some help finding some student loans with low or medium ranged interest on them to help my parents get on board. Anyone have any idea what the average interest rate is for student loans?
I also would like to know if I get loans, do I have to pay them off after I leave that university or do I need to start paying them off when I am done with college completely because I am moving schools after a few years at Montana to complete my profession education.
Am I able to pay off all my loans after I am out of that 2nd school? Or after I move from the first school do I have to start paying off those loans?
The interest rate on private student loans depends upon your credit score. If you don’t have the best credit score, then it will be hard to get a private student loan unless you add your parents to the application. Private loan lenders tend to be a bit strict with payments and the interest can be a bit higher than federal student loans.
I would suggest going with federal student loans and then private loans if you need some backup money. Depending on what type of federal loan you get will determine when and what you have to pay. The Subsidized Stafford loan is the best, first choice for students looking to borrow money for education. Low fixed interest rate, as low as 6.0%
No payments are due while enrolled in school or in deferment and
no interest has to be paid while enrolled in school or in deferment.
Acceptance is not based on credit.
An Unsubsidized Stafford Loan is a federally guaranteed loan that is not based on financial need. Interest will accrue from the time the loan is disbursed to the school. You do not have to make interest or principal payments until six months after graduation, or six months after you drop below a half time status.
Increased limits means you can borrow up to $2,000 more. There’s a Fixed interest rate of 6.8% and no payments required while enrolled in school.
Whatever loan(s) you have for the first school, they will have you start paying once you leave that school. It doesn’t matter if you switch schools. If you acquire loans at the second school, then you can start making payments when you’re finished with the second school. Once you stop attending a school to which you opened loans for, you go into repayment.
