Gina Said:

what is the lowest fixed rates for student loans?

We Answered:

THe lowest fixed rate student loan is the Perkins loan at 5%. To apply you must fill out the fafsa at http://fafsa.ed.gov

The next best fixed rate loan is the Stafford loan at 6%. Again, to apply you fill out the fafsa application stated above.

Private student loans are evil and should be avoided at all costs. If you ever see anything that says "Prime + (insert number here)" you are getting ripped off and that will be more than the federal student loans.

Gabriel Said:

Fixed-rate student loan?

We Answered:

I would suggest toughing it out and continue to be the typical "dirt broke" college student. Without a cosigner or good credit your loan options are limited and if you have borrowed Stafford already then you have reaped all the benefits of the gov programs. Work hard on applying for merit scholarships (from your school).

I would suggest getting a job or increasing your hours if you have one already. If that doesn't help, id suggest a cheaper school or cheaper living accommodations, sell the car, toss the cell phone, whatever you can do to cut expenses.

I would also really, really, really, think long and hard before you consolidate your loans and read all the fine print. Because what they DON'T tell you about consolidating is that you loose all the federal benefits of having government loans when you consolidate. (Like mandatory deferments, fixed interest rates, the ability to have your loans forgiven if you die or become disabled or if the school closes).

With consolidation you pay more in the long run. Sure the payments might be less, (and even the interest may be a smidge less) but your new loans are now on a 25 year payment plan instead of 10 and you will pay twice as much in the long run. They also promote these programs by saying, "make one payment". But folks don't realize that if all your loans are federal loans you WILL make one payment, even if you have 8 or 9 loans (like I did) you still send in one payment and they automatically distribute your payments in the appropriate amounts to each loan.

If you look on your credit record after graduating all 8 or 9 federal loans will be listed. If you consolidate, you will have an additional loan listed on your credit record.