Private College Loans Can Be Cheaper Than Federal Loans
Many students and families have substantial college debt by the time of graduation. For many of those families, private college loans are much cheaper than federal student loans now—a reversal from as recently as one year ago. While the federal government has increased interest rates on its loans for the 2014-15 academic year, most private lenders have kept their rates steady for parents with high credit scores.
Interest rates on new federal Plus loans—which are often taken out by parents—have recently risen. Every borrower gets the same rate regardless of his or her credit score. Read more