College loans and FAFSA?
Question by ustino: College loans and FAFSA?
Could anyone tell me everything about college loans and FAFSA… I don’t understand it at all! Also, what’s the difference between FAFSA, Stafford loans and Perkin’s loans? Thanks so much for your time!!!
Answer by Suddenly Human
The FAFSA stands for “Free Application for Federal Student Loans” and is the application for federal and state financial aid. Stafford loans are a federal loan you can get without a cosigner and have a fixed interest rate of 6%. If your family is considered poor, you can get Subsidized Stafford loans. This means the government pays the interest accumulated while you are in school. Unsubsidized loans the government does not pay the interest while you are in school.
Perkins loans are prob the best federal loan to get because they have the best interest rate and are also subsidized. If you HAVE to take out loans this the order you want to take them out in… the first is the best.
2. Subsidized Stafford
3. Unsubsidized Stafford
Never ever ever resort to private student loans, they have variable interest rates, require a cosigner, and if something were to happen, like you died or became disabled, your cosigner would STILL have to pay back those loans.
This is a great publication on the different types of loans, the interest rates and the max amounts you can borrow. Good luck.
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