Why get a Federal Stafford Loan? | 03.02.10
First off, if you haven’t filed your FAFSA yet… get on it! Many schools’ deadlines have already arrived for financial aid, and the rest are all due within the next month. Without the information contained in your Student Aid Report (SAR) submitted to your school, they can’t begin to put together your aid package.
OK — PSA aside, let’s talk a little about Stafford loans. If you’ve read my Stafford Loans, in Plain English blog (and I hope you have… it has good stuff in it), you know the basics.
To use an analogy, a Stafford loan is like a pair of designer jeans you happened upon in a discount store. They have a lot of value, and cost much less than if you bought them at their original store (or in the case of loans, applied for a private student loan instead.)
Stafford loans are the most desirable type of loans that you can take out for your education due to their low, fixed interest rates. In contrast, private student loans generally have higher, variable interest rates that fluctuate with the economy and can end up costing you ridiculous amounts of interest. So, if you need to take out a loan… try to make it a Stafford. It will save your money in the long run.
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