Education Loans: Stafford-vs-Private

[wrigley]

Hello,

Last child getting ready to start college. I know when my daughter went years ago that an Unsubsidized Stafford loan was a good deal because the interest rate was down around 3%. Currently, the Unsubsidized Stafford loan rates are anywhere between 6% and 7%. I've never dealt with a private education loan and was wondering if anyone has recently? Thanks

Mike

 

[MichaelB]

Stafford continues to be the best choice. It has lower rates and better repayment terms. Plus loans are next - more expensive but still easily obtained. Private loans tend to be the last option because they are more expensive and have poorer repayment terms - usually repayment begins immediately vs after college ends for others.