Loan Advice for Incoming M1

[deleted959484]

So I already accepted the 42k federal loan and also secured a 30k private loan with no associated fees and low interest rate of 1.6% to cover the rest of the COA . Last week my school gave me a 10k scholarship and I’m unsure if I should take less money from the federal or the private loan.

I’ve also applied for the NHSC scholarship and will most likely work in rural primary care regardless of getting the scholarship or not. Not sure if only federal loans qualify for repayment plans or not.

Any advice in appreciated!

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[Chemist0157]

I'd probably knock that off the federal component if you can as the interest rate is certainly higher than 1.6%. Who knows what repayment programs will look like years from now.

 

[dpmd]

I'd probably knock that off the federal component if you can as the interest rate is certainly higher than 1.6%. Who knows what repayment programs will look like years from now.

Not only the rate, but federal loans have an origination fee that if the loan gets returned gets refunded so that saves you 1% interest immediately.