- Joined
- Oct 11, 2007
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My question is this: With the economy doing so badly now, the prime rate is at 5%, let's say you have good credit and qualify for loan at (prime rate - 0.5%) 4.5%.
Unsubsidized stafford loan is 6.8% fixed
Grad plus health prof loan is 7.9% fixed Yikes!
Wouldnt it be more economical to take out private loans since the interest rates are lower and even though it is variable, it seems like the prime rate is going to decrease more in the next year to come.
I am just confused because it usually was always better to take federal loans before looking into private loans, but the recent fixed rate on federal loans now make it better to take out private loans first?
Unsubsidized stafford loan is 6.8% fixed
Grad plus health prof loan is 7.9% fixed Yikes!
Wouldnt it be more economical to take out private loans since the interest rates are lower and even though it is variable, it seems like the prime rate is going to decrease more in the next year to come.
I am just confused because it usually was always better to take federal loans before looking into private loans, but the recent fixed rate on federal loans now make it better to take out private loans first?