Private Student Loans

As parents begin the process of searching for financial aid to help with college expenses, we'd like to remind them to beware of private student loans. Unlike federally guaranteed  loans, private student loans may come with variable interest rates and banks are less willing to work with a student to defer repayment until they find gainful employment. Stick to federal loans that come with a fixed interest rate, loan forgiveness, deferments for the unemployed and an income-based repayment plan that can sharply reduce payments if income is too low to manage the debt.