<p>Their are soo many College loans out there, for Parents, for Students, I am highly confused. I want to hear from parents/students who have been through all of this already, and what the Plus -minuses are for all of these various loans. Do some start immediately, while some wait until after you are out of college, do some have a high interest rate while others are a low FLAT rate, if so , what is the pitfall of the Low flate rate loans? I am a parent who wants to help my son, but I HATE to pay interest for anything, and I want to know what the BEST loans are for the Least amount of interest?? FOr the student, and for the parents? Thank you all.</p>
<p>OverRun-
I'm just another parent, not an expert.
IMHO, federal Stafford loans are the best starting point. If your student shows 'need' via FAFSA, he may qualify for subsidized loans. The amounts are relatively small, but the interest rate is low and no payments are due until 6 months post graduation.
Even with no demonstrated need, I believe student can still take out unsubsidized Staffords; payments begin at disbursement.</p>
<p>What state are you in? Some states offer student loans.
In NJ, we have the NJClass loan program. Either student or parent can be the borrower. Repayments begin soon after disbursement but the rate is currently less than 6% FIXED.
Perhaps a google search for your state will find similar opportunities.</p>
<p>The Parent Plus loan is another option, it was a higher cost for us so we didn't investigate it too much.</p>
<p>Best of luck....there are numerous financial aid gurus on this site that will likely chime in!</p>
<p>I just started some reading , and it seems the Federal Perkins Loans (If you can get it-depends on need) would be the best, what I read said these student loans won't have to be paid back until 9 months after schooling, and the interst rate is always 5%, but these loans are through the SCHOOL you attend -IF they participate. Not every student can get these loans though. It said, the Staffard, all can get I think. I hope my son can get a Perkins, so far, this sounds the best. As far as low interest anyway.<br>
We are a family of 8, my husband is making about $52,000 a year, just a little over that $50,000 mark that divides whether they look at your assets, etc. We do have some $$$ saved, got too for emergencies, ya know. Next year, when we apply, he will probably be making about $55,000 a year. We qulaify for WIC, and reduced lunches, which is another factor where they do not count your assests, but as I understand, ONLY if you make less than $50,000 AND are eligable for these programs. I have not seen anything where this is changed yet.</p>