I agree with what the first person wrote about taking a Stafford or Perkins loan (which are the ones you are talking about with FAFSA loans) over using a credit card, but I would like to correct some of what that person wrote.

First of all, the date you have have to begin paying back your federal loans (FAFSA loans) depends on the loan. If you take out a Stafford loan the repayment begins SIX months after you are done with school unless you consolidate in which case you start paying them back immediately after you are done with school. With the Perkins loan, you start paying back NINE months after you are finished.

Also, you do NOT get a discount on these loans with good grades. That has no bearing on your interest rate or repayment at all.

I worked in a college financial aid office for three years so I do know what I’m talking about. Also, if you have any other questions about financial aid, your school’s financial aid office would be your best resource.

There is no such thing as a FAFSA loan. The FAFSA stands for Free Application for Federal Student Aid it is the form you fill out that determines the eligibilty for several forms of funding. The loan that you are referring to is the Federal Stafford loan. The current interest rate for the loan is a fixed rate of 6.8% interest rate. Also check for incentives. If your school uses direct lending through the department of education than you are stuck with that. If they use the FFELP (Federal Family Education Loan Program) then you will have lenders competing for your business. Always check for borrower incentive programs. Some lenders give interest rate reductions from the 6.8% or other benfits like cash back. However you do need to be eligible for this loan based on the information you put on your FAFSA (income based). I’ve included some links. Also there is a 6 months grace period after graduation and while in school that you don’t have to pay (if they are subsidized no interest accrues until 6 months after graduation unsubsidized accrues over the life of the loan) Plus you get several years of deferements and forberences to postpone payments if you need to.

In my best opinion, and I’m speaking from personal experience, go with the FAFSA loan. They are usually good, you can later on get a lower interest rate, and you don’t have to pay them back till 7 months after your college graduation. You can also get discounts on them if you do good in college. If you’re looking for ways to find more money for college check out my published article below on how to do that! Good luck!

Complete Guide to Getting Free Money for College

http://www.associatedcontent.com/article/305158/complete_guide_to_getting_free_money.html

I agree with the first two people. They are very easy and lenient to pay back much Unlike creditors.