This was a while ago. But I think FAFSA loans you could get with a 1% initiation fee for like $5000 a semester. What we did as parents was take out the loan because there was no interest on this for 4 years (potentially more, if grad school).
At the time of us taking out the loans as well the interest rates were really low, like 3%. this jumped quickly later to like 7% for later kids.
But we still took out the loans for three reasons. 1) interest free loans. 2) potential government/public sector work programs to pay off loans. I think this was implemented. If you worked for the government for 10 years,your student loans would be paid off. Or something like that. 3) the potential of the government rolling back interest rates.
We were not taking out the loans for the potential of a government bailout for the loans. But more so because you are getting interest free loans. This was only for like 10g a year.
A college guidance counselor at the high school was telling us that we might as well take out the loans for number 1 and 2 above. Things may have also changed greatly in this process from 10 years ago.
At the time of us taking out the loans as well the interest rates were really low, like 3%. this jumped quickly later to like 7% for later kids.
But we still took out the loans for three reasons. 1) interest free loans. 2) potential government/public sector work programs to pay off loans. I think this was implemented. If you worked for the government for 10 years,your student loans would be paid off. Or something like that. 3) the potential of the government rolling back interest rates.
We were not taking out the loans for the potential of a government bailout for the loans. But more so because you are getting interest free loans. This was only for like 10g a year.
A college guidance counselor at the high school was telling us that we might as well take out the loans for number 1 and 2 above. Things may have also changed greatly in this process from 10 years ago.
Last edited by:
patentattorney: May 21, 19 12:29