Best loans...

Paying for College
1

<p>Hello, </p>

<p>I am at CIty College this spring, and I am ruled out for Federal Pell Grant because they decided that I was too rich. Now I have a bill of $1,700 to pay, and I don't have those money so that I am looking for a loan. Stafford loan gives loans to students with the interest rate of 6.8%. I am not experienced at this at all, so I can't estimate is this offer a good or a not-so-good one. </p>

<p>If there are people who are taking (or did so before) Stafford or some other loans, I would appreciate some advices. </p>

<p>Thanks!</p>

2

<p>Typically the stafford loan is the best loan. Why?</p>

<p>There is no repayment while you are in school, it carries a fairly low fixed interest rate and you can get it fairly easily. Private loans on the other hand will require a cosigner and may have a variable interest rate. </p>

<p>In all honesty a loan for $1700 is nothing. </p>

<p>Can you afford the payment plan if one is offered?</p>

3

<p>Was any amount of the direct loans you were offered subsidized loans? Stafford is effectively just an older name for the direct loans that are offered based on FAFSA. For undergrads, both the subsidized and unsubsidized direct loans are at 3.86%:</p>

<p><a href=“http://studentaid.ed.gov/types/loans/interest-rates[/url]”>http://studentaid.ed.gov/types/loans/interest-rates&lt;/a&gt;&lt;/p&gt;

4

<p>I thought something like that too. I’ll go for a Stafford. I know that $1,700 is nothing, but I am pretty much broke at the moment :)</p>

5

<p>I think any students who filed FAFSA could get the Direct Unsubsidized Loan. See [Subsidized</a> and Unsubsidized Loans | Federal Student Aid](<a href=“http://studentaid.ed.gov/types/loans/subsidized-unsubsidized#am-i-eligible-for-a]Subsidized”>http://studentaid.ed.gov/types/loans/subsidized-unsubsidized#am-i-eligible-for-a)

There are many repayment plans for Direct Loans. See [Direct</a> Loan Repayment Plans](<a href=“http://www.direct.ed.gov/RepayCalc/dlindex2.html]Direct”>http://www.direct.ed.gov/RepayCalc/dlindex2.html)</p>