25 märts Just to make this more complicated, there are two types of Stafford loans available to students
For those who demonstrate sufficient financial need, the government will pay the interest on "subsidized" Stafford loans for students while they are enrolled in college. Otherwise, loans accumulate interest while a student is in school, and the student may either pay that interest as it comes due or let it be added to the principal balance.
Where to begin? With a first step that unfortunately is not easy -- filling out the Free Application for Federal Student Aid, or FAFSA. There was talk in Congress earlier this year of simplifying this form, which is long and detailed, but no changes have been approved by lawmakers yet. The good news is, it is free and can be completed online. The reward for slogging through it is eligibility for the federal loans, which may save a borrower hundreds or thousands of dollars in interest.
Any borrower's first choice, of course, would be the Perkins loans, for those who qualify. Then look to see if your school participates in the direct federal loan program.
For those taking out bank-issued federal loans, some shopping around is in order. There are some differences in the loans being offered -- but not ones that are easy to weigh.
For instance, even though the maximum interest rate is fixed, some lenders will offer discounts ? for example, cutting the interest rate or reducing the principal balance ? to borrowers who meet certain targets. In some cases, borrowers who make 36 consecutive on-time loan payments may qualify for certain reductions.