Questions about federal loans vs. state loans

<p>Daughter was offered fed loans by her school--about 2K subsidized and 1.5 K unsubsidized.</p>

<p>Since these are federal loans, are the interest rates set by the gov't? If so, is there a website where I can check out the rates?</p>

<p>In Massachusetts, we have a state loan program that offers very good rates. If the state loans end up being a better deal, is it possible to turn down the fed. loans and go strictly with the state program? The state program has a fixed rate of 6.39% if you start re-paying immediately.</p>

<p>We need to get our act together soon, as the Aug. 1 payment is fast approacing.</p>

<p>Thanks to all who respond.</p>

<p>Which federal subsidised loans were you offered? </p>

<p>The Perkins is the best deal out there - 5% interest rate but the government pays the interest until 9 months after graduation (or dropping below 1/2 time attendance). Oh and no loan fees. </p>

<p>Stafford subsidised loans are 6.8% interest and again the government pays the interest until graduation/dropping below half time but the grace period is 6 months. There is an origination loan fee for Stafford loans - 3% I think. </p>

<p>Unsubsidised Stafford the same fees and interest rate but the Gov does not pay the interest. I believe you can capitalize the interest if you do not wish to start paying now (something i would be reluctant to do).</p>

<p>I would certainly take the subsidised loans as they are basically interest free until graduation plus a grace period. The unsub you should check into which would be the better deal for you long term - origination fees, length of repayment term etc.</p>

<p>finaid has good accurate information</p>

<p><a href="http://www.finaid.org/loans/studentloan.phtml%5B/url%5D"&gt;http://www.finaid.org/loans/studentloan.phtml&lt;/a&gt;&lt;/p>

<p>your Ds school should also give you all the info. With our Ds finaid offer we were able to accept or decline each loan/ws seperately so I would think you should be able to pick and chose where to accept and where/if you want to go elsewhere.</p>

<p>thanks! web link you provided answered my questions.</p>