zeayin82 wrote:
I have a question about the loans for US students attending LBS.
As I learnt,
US stafford loan offers an interest rate ~ 6.5%
And HSBC-LBS loan is ~3.5%
Why do most US students still prefer using stafford first?
Can someone address this?
Part of the US Stafford loan amount is subsidized, which means that you do not accrue interest during your program (the federal government pays the interest instead). Additionally, the Stafford loan is a fixed rate program (as is the GradPLUS scheme, which LBS is now eligible for), whilst the HSBC loan is a variable rate (base rate plus 2.75%). So there may be some benefit to the Stafford/GradPLUS program if you believe the BoE rate will go up during the course of your repayments.
As a caveat, the US loan programs are disbursed in dollars, so you have to be careful on deciding how much to borrow (based on exchange rates).