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[quote=Anonymous][quote=Anonymous][quote=Anonymous]The covid-era student loan program changes have turned the the economic incentives for parents completely upside down.

Anyone not taking out loans right now has not been paying attention. [/quote]

What are the Covid-era loan changes you are talking about? Do they apply to unsubsidized Stafford loans? I have one kid in undergrad and one in grad. We’re paying cash right now but does it make sense to take out a loan? What are the rates like?[/quote]

Stafford (both subsidized and unsubsidized) loans are approximately 3% interest for kids starting college recently and soon. Subsidized loans require financial need and do not accrue interest until you graduate, I believe. Stafford loans have $27,000 total (not per year) per dependent undergraduate student. Dependent, meaning not otherwise emancipated due to abuse as a minor, military, marriage or being a parent themselves. The limits are as follows:

$5500 for freshmen 
$6500 for sophomores
$7500 for juniors
$7500 for seniors

The loan amounts are not additive; if your child is a sophomore now and you turned down previous stafford loans, there’s no getting those back at those rates. You apply for those through FAFSA. No co-signer required.

Grad plus loans are what students take out for graduate school. I can’t remember the interest rates for those off the top of my head. [/quote]

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