<p>So I qualify for two loans at my school, both with an interest rate of around 7% and both that accrue interest and one that expects me to make payments on the interest while I'm still in school. By the time I graduate I'll have accumulated over $10,000 in interest alone. Is there another better loan option? Maybe through a private company?</p>
<p>Which loans did you qualify for?</p>
<p>The Ford federal unsubsidized loan, and the Minnesota SELF loan.</p>
<p>I am not familiar with the Missesota SELF loan but I truly doubt you can get a better interest rate for the unsub loan you were offered. Remember, Stafford loan interest rates are capped, private loan interest rates are not. THer are also special repayment terms available for Stafford loans that are not available for private loans. For example, if you cannot make your monthly payments due to unemployment, medical emergency, etc, you can contact the government/lender for the Stafford loan and request a forebearance and have your paymens deferred until your situation improves (I believe there is a 2 year limit)....private lenders typically do not care what is going on in your life. Also, if you discover upon graduation that your anticipated monthly payment is more than you can afford, the Stafford loan can be placed into an income-sensitive repayment plan, where they base your payment on your income/expenses and extend the repayment time period past 10 years. Private lenders typically don't have income sensitive repayment plans.</p>
<p>Okay, I guess I'll just go with what they gave me. Thanks for the advice.</p>