Watching Your Wallet: What to consider on student loans

abc 30 ACTION NEWS

“There are federal loans, private loans, state loans, some schools offer their own loan programs. In general, federal loans tend to be more preferable to private loans,” Betsy Mayotte says. “Not because of the interest rates, although sometimes, but because federal loans have more safety nets if there’s a financial crisis in the future.”

The Institute of Student Loan Advisors (TISLA) is a non-profit that provides free student loan advice.

Founder Betsy Mayotte says when deciding which loan program is best, there are several factors to take into consideration, but start by thinking long term.

“If your school of choice means that you’re going to have to borrow $10,000 for this year, you should be multiplying that by five because a lot of students actually take five years to finish their four-year degree,” Mayotte said.