- What’s the difference between
federal and private student loans?
- Federal loans are funded by the U.S.
Department of Education and
come with fixed interest rates, flexible repayment options, and forgiveness
programs.
Private loans are issued by banks or credit unions; rates depend on credit
history and
usually offer fewer repayment protections.
- How do I know if I qualify for
need‑based aid?
- Submit the FAFSA. Your school will
calculate your
Expected Family Contribution (EFC) and determine eligibility for grants,
subsidized loans, and work‑study.
- Is it bad to take out loans for
living expenses?
- It’s common, but borrow the minimum you
need. Interest accrues on
unsubsidized and private loans as soon as funds are disbursed, so every extra
dollar borrowed costs more later.
- Can I refinance my student loans
before graduation?
- Yes, but most lenders require proof of
income or a co‑signer with strong
credit. Refinancing federal loans also forfeits federal protections like
income‑driven plans and PSLF.
- What credit score do I need for
a private loan?
- Most lenders look for 650 or higher, but
you can qualify with a lower score if
you have a credit‑worthy co‑signer.
- How much should I borrow in
total?
- A common rule: keep total borrowing below
your expected first‑year salary.
If you expect to earn $50,000 after graduation, aim to borrow no more than
$50,000.
