Loan Question

[sisjay]

In trying to understand the different financing options...

If a school has been approved for stafford loans - is that better than private loans.

What exactly does that mean? Does that mean that as long as a student is not in default they will get a loan?

If you have knowledge about this, please explain...

Thanks

[wcb22]

stafford loans are better than private loans. in my case, i've accumulated $11,000 of loans from my undergrad degree. because i'm married and poor, the gov't pays for the interest (meaning they are subsidized loans). even when you do pay interest on stafford loans, the rate is lower than private loans.

[mutig25]

Also, federal student loans do not require that you are credit-worthy, although private loans do (or at least a co-signer). This could be helpful provided you have bad credit.

However, if you've taken out federal student loans in the past for say undergraduate work, I believe it's difficult if not impossible to get additional loans if you've defaulted on any and haven't made progress to make payments.