Our First Guest!
Great news! We had our first guest on the podcast: Jodi Kaus, JD, CTFA, and Director of Powercat Financial. She is somewhat of a student loan genius, so there was no one better we could have had on the show! This week's topic was types of student loans, the 1st of our 4 part series on Student Loans.
Student loans are money that the government or a bank loans someone to pay for educational expenses. Some educational expenses may be tuition & fees, room & board, books, supplies, transportation.
Federal Loans = From the government
Not credit based
Based on student financial position and position in school
Types of Federal Loans (Accessed through FAFSA)
Subsidized = Need based loan
The government pays the interest while the student is in college, with a six month grace period after graduation
TAKE THIS LOAN AS YOUR FIRST OPTION
Unsubsidized =Not need based
Anyone can receive this one, interest begins when the loan is given out
Parent PLUS = Under the parent's name, credit, and Social Security Number
Can NEVER be transferred to the student
Has higher interest rate
Graduate PLUS = For graduate students
Loan option for graduate students with a slightly higher interest rate
Details about potential loan amounts, types, and availability can be found at http://www.k-state.edu/sfa/ or the Office of Student Financial Assistance at your own university.
Private Loans = From banks or financial institutions
May or may not be better interest rate, depending on your credit score
Don't have perks of Fed Loans, like loan forgiveness
PRIVATE LOANS SHOULD BE YOUR LAST RESORT
"Money Tip of the Week"
Pay off the interest on your unsubsidized loans before your grace period ends! If not, it will get added to the total amount of your loan.
Three Main Takeaways
1. Where can you get loans?
Federal or Private
2. What to look for when deciding?
Interest rate, grace period, deferment
3. Use your on-campus services to help you with the loan process