<p>This year, the Stafford Loan Rate (3.86% for undergrad) is lower than Perkins (5.00%). </p>
<p>The Stafford loan does have an origination fee, whereas I do not think the Perkins does.</p>
<p>So, it seems like, if you don't need both loans, the Subsidized Stafford is the better one for this year.</p>
<p>Any comments?</p>
<p>You are correct. Sub Stafford rates are lower than Perkins rates this year, but the Perkins does not have an origination fee. I would say that folks should accept sub Stafford first, then Perkins, then unsub Stafford.</p>
<p>Yes, keep in mind that the unsubsidized Staffords may appear to have a lower rate this year than the Perkins, but the feds don’t pay the interest on the unsubsidized Staffords while you are in college and do not defer the payments while you are in grad school. </p>
<p>Yes, if Perkins are offered to you, you should max out subsidized Staffords, then Perkins, and then only use unsubsidized Staffords if needed. </p>
<p>The Perkins program is expiring in a year or two, and there is no guarantee it will be extended. The US House may kill it by refusing to act. The President wants to replace it with a larger program that would reward cost-effective colleges.</p>
<p>In all likelihood, interest rates on all new loans will increase each year, as inflation increases. For example, Staffords may be 4% for new loans taken out this year, 5% for new loans taken out the following year, and 6% for new loans taken out in 2 years. </p>
<p>Therefore, it does not pay to wait to take out subsidized Staffords - take them out if you qualify and if you later find you don’t need all of that money, you can always pay them off early.</p>
<p>
Sigh! All good things must come to an end.</p>
<p>Not everyone is offered Perkins. It goes based on the school.</p>