What can you do with the money you can get from your state and federal student loans?
The National Review has a good post today on how to get help with federal student loan payments and what you can do with it if you’re considering college.
Here’s what you should know about federal student aid and what it costs to borrow.
It’s not cheap.
The federal government will pay you back about half of the interest on your loans in 2023, according to the Department of Education.
The other half will be paid off over 20 years.
Most loans have an annual percentage rate of 6.8%, according to The Federal Reserve Bank of New York.
If you’re borrowing to finance a house, you’ll pay off your loans at a higher rate.
The average monthly loan payment on a 20-year fixed-rate federal student is $1,200.
For a variable-rate, federal student borrowers pay about $800 less.
But the monthly cost of attending college is much higher.
The National Association of College and University Financial Aid Administrators estimates that a typical federal student receives an average of $23,200 in federal aid.
That includes $5,600 in Pell grants, $2,400 in PLUS loans and $1.50 in federal loans.
A typical PLUS loan, on the other hand, costs borrowers about $5.50 per month.
If your monthly payment is more than $10,000, you’re eligible for subsidized Stafford loans, which cost between $3,300 and $10