What should I do about...ugh loans?

Question

This scholarship process has been a complete nightmare. I can't get anything. For instance, out of over 1,500 people, I finish 2nd and get $0. It's been frustrating to say the least.

Well, now I won't receive my award letter in the mail until mid-June. As a result, I have no idea as to how much in loans i I should take out and from where. Additionally, I won't know the results of a few other scholarships and the Robert C. Byrd Program until late June, but knowing my luck, I'm not banking on it.

Should I take out any loans now, and, if so, which ones do you recommend? Also, do you think I can ask Penn State to send me my letter a little earlier?

Answer 1

Federal loans are the best.  They have the best int erst rates, don't require a credit check or a cosigner, and sometimes the government will pay the interest while you are enrolled in school.  The max you can borrow in federal Stafford loans as an independent student (per year) is 3,500 as a freshman, 4,500 as a Soph, and 5,500 as a Jr. or senior.  It's more if you are independent.  Parents can take out PLUS loans if this is not enough.

To apply for federal loans, you go to http://fafsa.ed.gov if you have not done so already.  It doesn't matter who you choose as your lender (the school will give you a list).  Federal loans are all regulated, so the interest rates and terms are all the same.

Private student loans are evil and should never even be considered.  Don't take out student loans your first two years unless you absolutely have to.  Even then, consider attending a cheaper school for your first two years.  Here is a good book with interest rates listed.