I’ve tried reading into the various loans available to students and am just as confused as ever?
According to the financial aid office I called, due to my high EFC I am ineligible for subsidized federal loans and can only apply for an unsubsidized federal loan.
Should I apply for a $2000 unsubsidized federal loan or a subsidized Wells Fargo bank loan of $2000?
I think the rate would be lower for the federal loan even if unsubsidized but I’m not completely sure if the bank loan would be better even if the Wells Fargo loan interest rate is suppose to be 10%?
Any insight on this would be helpful! Thank you.
Subsidized private bank loan? That makes no sense. “Who” is subsidizing it?
You need to find out more about the Wells fargo loan. What is the interest rate? What are the terms?
You can apply (and have actually applied through FAFSA) for the full Stafford loan from your school. If you are a freshman, you can borrow up to $5500 and it will all be unsubsidized. The rate for next year is 4.29%. You can defer payments until after you graduate or leave school. If you have any questions, ask the financial aid department at your school.
Federal government has cut out the banks as middleman for the Federal student loans programs a few years back.
Take the federal student loan, not the bank loan.
You would need a cosigner for the bank loan. it isn’t subsidized.