College costs keep rising, which means parents and students are borrowing more money.
While you should do everything possible to keep from racking up tens of thousands of dollars for college expenses, there is a ray of good news. All the federal student loans made on or after July 1, 2010 have a better interest rate because they will be direct loans, which come straight from the U.S. Department of Education. This will save college borrowers billions of dollars by eliminating a parallel program that subsidized private lenders to make the same federal loans.
For a great chart that compares features for 2010-2011 college loans, here’s a website.