Fed Financial

What are the best ways to get student loans with a decent interest rate?

I have been in community college for the first 2 years of my schooling so I have not had to take out any student loans yet. I have been applying for loans for this next semester and I have been getting really high interest rates. Some are over 15% which I feel is riduculous. I am 21 years old with good credit and I have used my parents as co-borrowers when applying. They do not have great credit and my dad makes too much money for me to get any government help, but they don't pay for anything. Where should I go for lower interest rate on loans? Also, what is a good amount to take out if I decide not to work next semester? Thanks! My parents are married so any information I use goes for both parents.

Public Comments

1. Don't get into debt if you don't have to. There are so many scholarships and grants out there. This is the cheapest way to go. Reapply and just use your moms information. Dad is out of the home. Those interest rates will break you, I know. Been there done that and still paying. There are ways around the system I just don't know where to get the information from. Good luck with your schooling. Try scholarships.com or grants.org.
2. This is a pretty standard question. Without spending too much time in a financial aid office, there is plenty you can do get the process started. Start by going to http://www.fafsa.ed.gov/ and filling out the online form for federal student aid. After finding out what you are eligible for in terms of subsidized stafford loans, you can figure out if that is enough to finance your tuition and expenses. In most cases, it isn't. If you find that you need more money then you are offered, you may want to try a private student loan. The best thing to do is compare the different private lenders out there, which can be done at http://www.finaid.org/loans/privatestudentloans.phtml Most of the rates are very similar but do a little research and pick one that you think is best. I would suggest Think Financial. The application process is very quick and easy, and the check is sent directly to you so you can use the money for whatever you want. The limits are much higher with private student loans, up to $40,000 per year. You can find out more information about a Think loan at http://www.thinkfinancial.com . Good Luck.