I'm an incoming MS1 and currently trying to figure out which kind of loans to take out for the first year (looking at around 30k). My school offers institutional loans that are fixed at 6%, and you are limited to no more than 30k of these loans. These are interest free while you are enrolled and for one year after enrollment. It looks like the interest rate for the upcoming year on the Federal Direct Loan is going to be 5.28%. Considering this, I am debating if it makes the most sense to take out the 30k of institutional loans right away to maximize on the lack of interest accrual while in school or split up the 30k between the two (say 10k institutional and 20k federal or any iteration of this) since the federal interest rate is still lower than the institutional rate for this year. Then, I could use the remainder of the institutional allowance during M2 when the federal interest rate will most likely increase again.
I appreciate any and all thoughts on this! Thank you!
I appreciate any and all thoughts on this! Thank you!
