Fed Financial
a question about private student loans and interest?
im a transfer student at a state school whos living off campus. it looks like i have 3 semesters to go, and so far ive only taken out a $4500 federal loan, i wont even be using all of it this semester (it should cover most of this semester and the next). the problem is, i cant use it for off campus living. because of unexpected expenses, im having a hard time getting my rent for next month, still have to pay my security deposit, some bs fees on campus that add up to a couple hundred bucks, etc. i'm thinking about taking out a private loan of about $1500 to make sure im covered (i wouldnt use all of it now, thats usually the minimum student loan). my question is this: i know that private loans have high interest, but if i were to pay it off sometime this coming summer instead of waiting until after i graduate, would i still have to pay for interest?
Public Comments
- Yes. The interest on private student loans starts accumulating immediately so you'd still be paying interest. Also be sure the loan doesn't have a prepayment penalty and check their "fees". you have to pay a certain percentage of the loan for destination fees or something. usually those kill you in a loan that small. Also be aware you'd have to pass a credit check and if you can't you'd have to get a cosigner.
