How to pick a college that won’t leave you with a mountain of student loan debt

Personal Finance


Federal loans typically offer the best terms, but are often capped at relatively low amounts, said Adam S. Minsky, an attorney specializing in helping student loan borrowers.

Private loans or Parent Plus loans have more strings attached. Private loans frequently have interest rates that are high and variable. They often require a parent to co-sign the loan and offer very little flexibility if there’s a hardship.

Parent Plus loans require a parent to take on the debt burden. Though these loans are governed by federal law, they typically have higher interest rates than other federal loans, Minsky said. Parent Plus loans also have less flexibility in repayment, such as no income-driven repayment plan, and cannot be transferred to the child.

“There’s a lot of dangers there,” Minsky said.



Source link

Products You May Like

Articles You May Like

Here are six expenses you do not put on plastic
Americans love bond funds, but will funds love them back?
US Bancorp quarterly profit rises 13.7%
Health-care costs in retirement grow to $280K
Claiming Social Security at 70 can be valuable — but it isn’t easy

Leave a Reply

Your email address will not be published. Required fields are marked *