Consolidating student loans advice 2016
Graduate students can borrow between ,500 and ,500 each year.But I want you to borrow as little as possible in unsubsidized loans because the interest on these loans accumulates while you're in school and you are responsible for the total interest and principal amounts.Do you need to borrow to fund college education for yourself or your child?I wrote this guide to tell you about my Clark Smart approach to student loans.New unsubsidized Stafford loans carry a fixed interest rate of 3.76% for undergraduates and 5.31% for graduate students.Similarly, freshman can borrow ,500 in unsubsidized Stafford loans annually; sophomores can borrow ,500 each year; and juniors and seniors cap out at ,500.Read on and let me help you with the #1 problem in so many people's financial lives!
Once you exhaust your subsidized Stafford stockpile, you want to move on to unsubsidized Stafford loans.The interest is picked up by taxpayers while you're in school.New subsidized Stafford loans carry a fixed interest rate starting at 3.76%.Back in 2005, the private student loan industry bought off enough politicians to gain the right to do any and all tactics short of causing you bodily harm in their efforts to collect on their money.As a third option, parents can help their kids by taking out PLUS loans, which are issued at a fixed rate of 6.31%. You apply for federal student loans by visiting gov and completing the Free Application for Federal Student Aid.
I want you to avoid private student loans at all costs.