It is important to remember that borrowers can refinance a federal loan to a private loan, but they cannot go the other way or revert back once this occurs.
The decision may be simpler for prospective borrowers since federal loan rates change each year and are based on the high yield of the last 10-year Treasury note auction in May, so prospective undergraduate federal loans borrowers generally receive the lowest rates (currently, 2.75%).
Undergraduates, however, arent often the ones accumulating massive amounts of debt due to federal borrowing limits. We typically see six-figure student debt totals among graduate students and parents.
A popular form of financing for this group is the federal PLUS loan. This loan, often referred to as a…
Read the full article at: https://www.thinkadvisor.com/2021/02/22/student-loan-debt-relief-recent-changes-advisors-should-know/
