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Not true. Low-interest student loans are the ones that are subsidized. Not all federal student loans are subsidized. The current interest rate for unsubsidized federal student loans is 6.8%. Interest accrues on those the moment the money is disbursed. The interest rate on subsidized student loans is closer to 3% - and the student isn't responsible for any interest accrued prior to leaving school (whether graduating or not). One must qualify for subsidized student loans.
That said, student loans (whether federally subsidized or not) should be taken as seriously as any other debt occurred. If you need to borrow money to go to school - you should be smart about how you spend that money, understand your obligation for repayment and do it to the best of your ability.
From the federal government? Didn't know that. All I had available to me(grad) was just some money from the state and school for being an assistant and going into a shortage area. I knew that ph.d candidate could also get money for teaching courses, but I didn't know it was that much. Maybe I just might re-considering continuing on afterall
you're right, it's not federal government money for the most part (unless you get an NSF or Javits grant or something like that). I was just pointing out that most grad students didn't pay.
the amount depends on the program. Private schools are usually better. Vandy pays history PhD students $26K a year, UNC about $19K.
6.8 is low? When you can get a mortgage for under 4%? The banks are getting free money right now.
You have to keep in mind that a mortgage is a collateralize loan and low rates are only given to those with good credit. That is not the case with a student loan. There is additional risk involved and that must be accounted for.
If an 18 year old without credit were to approach a bank for an uncollaterized loan (a personal loan), he/she will not get 6.8%.
If an 18 year old without credit were to approach a bank for an uncollaterized loan (a personal loan), he/she will not get 6.8%.
QFT
An amazing number of folks I know are simply unable to understand this simple truth. Don't forget, these loans are also subsidized on the back end (tax credits to the lender) as well.
6.8 is low? When you can get a mortgage for under 4%? The banks are getting free money right now.
A mortgage is secured by real property. A student loan is unsecured and given to young people who have no current income and no credit history. 6.8% is pretty low for such a high risk loan.
Isn't that low rate for low/moderate income students only? My kid has loans at 6.8% and from 2007-2010.
Still, there can be no "help" for these types of loans since they depend on repayment in order to keep lending to new people.
yea, my loans are from 2005-2008 and they're all at 5-6.8%. only one was unsubsidized and it was 9.8.
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