Those wishing to borrow must turn to private loans, which generally carry fewer protections — and, often, higher rates — than federal loans. No laws prohibit lenders from making loans to undocumented borrowers who possess identifying information like a Social Security number, which Ms. Perez has. Among five of the nation’s largest issuers of private student loans, two — Discover Bank and Sallie Mae — said they made loans to undocumented students under some circumstances. Those loans are typically more expensive than federal loans. For undergraduates, the interest rate on federal loans disbursed this year is fixed at 3.76 percent.

Source: New York Times February 06, 2017 00:59 UTC