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

oil and gas sector recovery ‘not yet certain’
China and Pakistan’s Belt and Road plan might not convince other investors
Make the #MeToo moment your chance for a raise
The Dow stocks to own when inflation is running hotter
Trump tweets Russia started anti-US campaign long before he ran for president

Leave a Reply

Your email address will not be published.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