The first bill has arrived, and suddenly, it’s time. Your student is going to college and you’ve got to figure out how to finance it.
When it comes to education financing, a family’s first choice should always be the federal Direct Subsidized and Unsubsidized Loans. These are low-cost, fixed-rate loans (the rate for loans borrowed this year will be 3.76%), and the most that a dependent undergraduate student can borrow is $27,000 over the course of four years. The good news is that this loan is in the student’s name alone and your student will be solely responsible for repayment.