Student loans through FAFSA or Bank of America?
What are the pros/cons of getting a student loan through the government (FAFSA) as opposed to a bank, such as Wells Fargo or Bank of America?
FAFSA loans can be subsidized or unsubsidized. If you get the subsidized ones the government pays the interest of your loan so that you do not have to pay the accumulating interest from your loan.
Wells Fargo and Bank of America loans are harder to get and you must apply and pass a credit check or get someone to cosign your application. This person that cosigns is liable for the loan in the future if you do not pay for it.
FAFSA loans, if you can get subsidized are the best to get. Besides that you would have to compare the current interest rates all three places are charging to take loans.
FAFSA loans can be subsidized or unsubsidized. If you get the subsidized ones the government pays the interest of your loan so that you do not have to pay the accumulating interest from your loan.
Wells Fargo and Bank of America loans are harder to get and you must apply and pass a credit check or get someone to cosign your application. This person that cosigns is liable for the loan in the future if you do not pay for it.
FAFSA loans, if you can get subsidized are the best to get. Besides that you would have to compare the current interest rates all three places are charging to take loans.
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Personal Experience
FAFSA loans carry a lower interest rate than private bank loans, also FAFSA gives you what you need per semester, and not much more, so you borrow less in the long run.
Private loans come in handy though if you borrow one lump sum from a bank and just use that money throughout your college life. These loans have more interest however, and are harder to get for large amounts.
I think FAFSA is the best route to go…
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