Stafford student loans that are subsidized (meaning that the interest is deferred until after you graduate) are reduced from the 6.8% fixed rate to a low of 3.4% for 2011-2012 school years.
Something to consider is: (1) not taking on any debt of-course and paying with cash at a school you can afford or (2) going to a school you can afford but taking on some 3.4% debt and holding on to the cash, especially if it means saving your emergency fund, for example.
Your savings, though, may not beat the 3.4% cost without risk and debt always adds risk to your college payment strategy. Not good.
Planning ahead for these days obviously is the preferred approach. Plan.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.