Why did I get denied for student loans?

I need some help with student loans.?

• Background Info: I only have one family member who's been to college and that is my sister. My parents paid for all of it and then she dropped out. Because of this, they think that I need to pay for college so that I don't make the same mistakes she did and to establish character. (Even though I've been a better son to them they she was daughter.) My FAFSA got denied, and I have no scholarships. Pre-Money: Luckily for me though, I get all of the money that we get when we sell a truck that my dad and I have been restoring. I estimate this to be between 4 and 5 thousand. In addition to that, I have about 4K from my grandmother and 5K from my grandfather in inheritance. So all together, I have between 13K and 14K for college that is already paid for. College Offered Loans: I'm attending Grand Valley State University for the Fall/Winter semester where I'll be majoring in Computer Science. The estimated cost of attendance is $21,288.00. They offered me three loans. Here is some info on that: http://img21.imageshack.us/img21/4603/financialaidawards.png The only one they give more information on is the Parent Plus Loan. You can read about that here: http://www.gvsu.edu/financialaid/parent-loans-11.htm It says that the interest rate is 7.9% with a 2.5% processing fee. Now, correct me if I'm wrong, but isn't that an INSANELY high interest rate? Other Loans: I've been research and asking around, and a lot of people talk about Salle Mae. I went through a long sign up and application period just to find out the interest rate. (They said it would be between 2.25% and 10.125%. My parents are upper middle class and make about 100K a year together. Plus they have good credit. So I expected this to be a pretty low interest rate.) In the end, after getting the loan pre-approved for $11,288, I could finally view the interest rate. 8.3% :| Once again, isn't that really high? (Certainly not what I was expecting) I checked with a Sun Trust loan, and I noticed that is said the interest rate would be between 2.250% and 10.125%. After seeing this pattern, i left and came here. Questions: I have no idea how student loans work, or any loans for that matter.... I can't find very much information on the internet aside from people advertising their loans. What is a good interest rate? Where did you take out student loans through? Where should I go from here? Any other advice?

• Answer:

  It seems that you have done a lot of research and that your situation is a bit complicated. I would recommend making an appointment with the Financial Aid office at your school, they can help guide you in what to look for and what is the norm. They might also be able to help you with some options that you weren't aware of.