Should I Take Out a Perkins or Stafford Loan? | 10.20.09

Posted in Stafford Loan By Student Loan Network Staff

When you receive your awards letter back from the school, which is the form that outlines your financial aid options, be sure to pay close attention to the loan types offered to you.

Hopefully you will be eligible for a Pell grant or some institutional aid to saw into that tuition cost, but after that you enter the world of loans.  Two of the most common federal loans you will find are the Perkins loan and the Stafford loan, but which should you take?

The quick answer is the Perkins loan, but that may change over the next couple of years.

Right now the Perkins loan holds a 5% interest rate, while subsidized Stafford loans are at 5.6%.  But for the 2010-2011 academic year the subsidized Stafford loan is dropping down to 4.5%.  So as of today I would say grab the Perkins if it is offered, but tomorrow take the subsidized Stafford loan, unless Perkins loans have a rate drop.  Check with your FAO for further details.

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