With the recent fallout about educational institutions accepting all matter of filthy payola in exchange for letting private lenders get exclusive access to students, it’s apparent borrowers need to take Student Loan Shopping 1000. NYT goes into how you can look for a better deal:
• Get Federal loans First: Ask your financial aid office about Stafford, PLUS and Perkins loans. These are guaranteed by law protected against you defaulting and they have capped, low interest rates.
• Ask the bank that your family has a mortgage with
• Find state nonprofs that provide student loans, like the Education Finance Council.
Get your learn on, try and go for a private loan that acts as much as possible like a federal loan, and know whether the interest rate is variable, or some bank is going to be schooling you in the ancient art of usury for the next 35 years. — BEN POPKEN