<p>I'll be going to NYU next fall. As we all know, they tend to limit their financial aid. Since I, like many other confused students consantly hear of varioues loan providers (banks?, SallieMae) I'm not sure what is the best one to choose. Can anyone tell me the one with the lowest interest rates? Is there any type of catch? I'm so lost and need to apply for a loan quick. Care to share your stories?? POST AWAY!!! THANKS!!!</p>
<p>My understanding is the government loans like Stafford etc the loan amount is limited to around $5,000 a year. Go to NYU with room and board etc will cost you about $50K a year, so, unless your parents are paying the bill, it's going to be difficult. Most bank loans are the home equity type of loan, they carry interest rate of about 8%.</p>
<p>Thanks, but what is the advantage of obtaining a government loan?</p>
<p>^ lot lower interest rates</p>
<p>So, those students who typically take out loans, almost always would prefer a Stafford loan over any other type?</p>
<p>Special Feature Section in Wall Street Journal, July 9, 2007. Since law changed in 2006 and Curmo(?) investigations in student loans, the marketing has changed from a fixed interest rates to multiple rates and conditions. Remember all companies will make money, the question is to you is, how much of a profit do you want to give to them? Pay attention to the conditions of the loan-the rate is only part of the equation. Stafford and PLUS loans now have different flavors but with the same caps. </p>
<p>Competition amongst the lenders will save astute students money but will cost the uninform student more money.</p>
<p>Do all PLUS loan lenders adhere to the same terms as do the Department of Education Federal Direct loans (William D. Ford)? </p>
<p>I am most interested in knowing if there are differences in capitalization of interest; discharge due to diasability or death; deferment and/or forbearance due to unemployemnt & hardship; and consolidation. </p>
<p>I have a Federal Direct Plus loan for my son, however the school my daughter will attend does not participate in the Federal Direct Program.</p>
<p>Thanks!</p>
<p>So basically, there isn't any one loan thats better to take out than another (in terms of the percentage of what you'll owe in the long run).?</p>
<p>Did you get Monday's issue of WSJ? Good article in <a href="http://www.finaid.com%5B/url%5D">www.finaid.com</a>. Only the maximum interest rate is set by the gov. Prior to the law change of 2006 you could shop for interest rates in Stafford and PLUS through the company's discounting program. Likewise for consolidation loans. The discounting is even greater today.</p>