DIRECT STUDENT LOAN

Are There Undergraduate Student Loans With Lower Interest Rates Than The Direct Plus Loan?

9 Jul, 2009  DIRECT STUDENT LOAN Q&A

2 Comments so far »

1. Student Loans said

   am July 10 2009 @ 12:54 am

   Yes there are Undergraduate Student Loans that have a lower interest rate than the Direct PLUS Loan, but it really depends on who is taking the loan out. Are you a parent taking out the loan for the student? Or are you an Undergraduate Student?
   The Direct PLUS Loan is designed to be taken out by the parent of the student, who ends up being the beneficiary of the loan disbursement amount, but the parent is really the one on the hook for paying off the loan.
   If you are an Undergraduate Student, there are two more options you could explore when looking for a low interest rate student loan; the Federal Stafford Loan and the Federal Perkins Loan. Both of these loans are need based, not credit based, and require the filing of the FAFSA form.
   As of July 1st, 2006; the Federal Stafford Loan is issued with a 6.8% FIXED interest rate, previous to July 1st, 2006 Federal Stafford Loans were issued at a VARIABLE interest rate. Federal Perkins Loans are issued at a 5% FIXED interest rate. I hope this made it a little clearer for you, for more information on Federal Stafford Loans and Federal Perkins Loans visit the source below.

2. Sallie Mae said

   am July 10 2009 @ 1:40 am

   For a parent loan, it will be difficult for you to get a lower interest rate than a PLUS loan – these gov-backed loans are some of the cheapest money out there. The student him/herself could use a Stafford loan, the interest rate is slightly lower at 6.8%
   Here’s a list of current student loan interest rates: http://www.salliemae.com/get_student_loa…

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