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Education Financing

All articles tagged with #education financing

"Federal Parent PLUS Loan Rates Surge for 2024-25: Consider Alternatives"

Originally Published 1 year ago — by USA TODAY

With federal parent PLUS loan interest rates set to soar to 9.08% for the 2024-25 academic year, experts suggest families consider private loans, which may offer significant savings despite potential downsides like lack of forgiveness and income-driven repayment plans. Private loans can sometimes save tens of thousands over the life of a loan, but eligibility depends on credit profiles. Families should still prioritize subsidized federal loans if eligible and shop around for the best private loan rates.

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Navigating the Financial Landscape: Understanding Student and Personal Loan Risks and Opportunities

Originally Published 2 years ago — by CNBC

Families should be aware of the risks associated with private student loans as college bills come due. It is recommended to exhaust federal student loan options first before considering private loans. Private loans should be approached with caution, as they may indicate overborrowing. Scrutinizing repayment terms and protections is crucial, as private lenders often lack the forgiveness programs and forbearances offered by federal loans. Interest rates on private loans can be high, with some reaching as high as 18%, compared to the current 5.5% interest rate on federal student loans for undergraduates.

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