Need advice about Student Loans.?
I’m in a situation where I need to come up with $5500 (housing expenses). I have the option of accepting the $2000 Federal UNSUB loan (6.8% interest, payed as soon as the school receives the money) and get another loan for the difference.
The other option is to use CitiAssist Loan for full $5500.
https://www.studentloan.com/findstudentloan/citiassistundergraduateloan.htm#iratesButton
I called citibank and was told the interest rate can be between 4-25% depending on the cosigners’ credit history. I took out a Citibank Parent Plus loan for freshman year that has 8.5% interest rate. The third option is to apply for Parent Plus loan again. Please help me out, I want advice on what would be the best decision. :-/ Thanks a lot!
Hey, if your folks are willing to borrow money for you to go to school and do the PLUS loan, do it. Parent PLUS loans are not your loans to repay and you have no legal ties to them at all… what a bargan!!
If the folks aren’t willing, you need to get a Stafford loan and reduce the amount of your private loan by that amount. Don’t do JUST a private loan.
Federal loan interest rates are fixed (not so with that private loan-the interest WILL go up, trust me) , plus federal loans they are guaranteed by the government so if you were to become disabled or die, your cosigner wouldn’t be stuck with the loan. Variable rate loans are always a bad idea!!
