Try Shopping Around For Student Loans (The New York Times)

Abstract

“According to financial aid experts, the best way to finance college is clear: a federally guaranteed loan. Stafford and Perkins loans go directly to students, and PLUS loans are for parents or graduate students,” reports The New York Times. “But federal loans have a yearly and lifetime cap; and so students and their families increasingly turn to private loans. Justin S. Draeger, a spokesman for the National Association of Financial Aid Administrators, said students should seek private loans that mirror federal loans as much as possible, including allowing an extended repayment if the borrower becomes unemployed or returns to school. Students should also look for different ‘borrower benefits’ that lenders offer, like interest rate reductions after on-time payments or as a reward for using direct debit from a bank, experts said.”

The complete May 2, 2007 New York Times article is available on-line.