Best rates on consolidating student loans

Federal loan limits depend on whether you are still considered a dependent or if you are considered an independent student.Limits also increase if you’re going to professional or graduate school.Student loans are considered higher risk than car loans, house loans and other loans you can get from a local bank.You will have to go to a lender that specializes in student loans or to a bank big enough to offer them.Some of the lenders we reviewed do offer that – but you’re taking a risk because most forbearance programs are arbitrary, meaning the loan companies can decide whether or not to grant you the forbearance period.You might need private student loans to fill the gap between federal loan funds and the actual costs of college attendance.

If you graduate and work in public service – i.e., for the government or a qualifying nonprofit – the federal government also offers loan forgiveness options.Federal loans can also be subsidized, meaning that the government pays the interest on the loan while you’re in school and up through the first six months after you graduate.To find out which federal loans you qualify for, fill out the Free Application for Federal Student Aid (FAFSA) online.At first glance, private student loans might appear to have lower interest rates than federal student loans – but those lowest advertised rates are only for loan applicants who have excellent credit scores.The average college student won’t qualify for these rates or will be forced to sign with a cosigner.

Leave a Reply