Originally posted by: jarfykk
Interest rates vary and are set each July.
Originally posted by: jarfykk
You can consolidate your loans upon graduation to a fixed rate through either your lender, another lender, or the government itself. However these consolidation programs are much less generous than in previous years (some changes by Congress to make loans cheaper up front...ymmv :-/ ) but all still lock in a set rate, allow you to stretch the payments over a longer terms (e.g. 20 years instead of the normal 10), and generally knock off 0.25% interest for automatic payment from your checking account. With interest rates hovering somewhat near what you can get from a good savings account, the motivation to pay them off early is minimal. Federal student loans also go away upon your death (i.e. do not impact the estate) so something else to consider if you're older/poor health/long loan term.
Originally posted by: Zee
subsid- pay back what you borrowed
unsubsid- pay back what you borrowed + interest
Originally posted by: Special K
Originally posted by: jarfykk
Interest rates vary and are set each July.
Not anymore. Refer to this link:
Stafford Loan Rates
BTW OP, there seems to be a lot of good information about Stafford loans on that site. Another decent one is Finaid
Originally posted by: jarfykk
You can consolidate your loans upon graduation to a fixed rate through either your lender, another lender, or the government itself. However these consolidation programs are much less generous than in previous years (some changes by Congress to make loans cheaper up front...ymmv :-/ ) but all still lock in a set rate, allow you to stretch the payments over a longer terms (e.g. 20 years instead of the normal 10), and generally knock off 0.25% interest for automatic payment from your checking account. With interest rates hovering somewhat near what you can get from a good savings account, the motivation to pay them off early is minimal. Federal student loans also go away upon your death (i.e. do not impact the estate) so something else to consider if you're older/poor health/long loan term.
Again, the advantages of consolidation aren't nearly as good as before since the interest rates on Stafford loans are now fixed. They used to be tied to the 91-day Tbill. Stafford loans issued after July 2006 were the first ones to adopt the fixed rate formula. I lucked out and was able to lock all of mine in at the 2004 Tbill rates when interest rates were near 0.
Originally posted by: Ject3189
Originally posted by: Special K
Originally posted by: jarfykk
Interest rates vary and are set each July.
Not anymore. Refer to this link:
Stafford Loan Rates
BTW OP, there seems to be a lot of good information about Stafford loans on that site. Another decent one is Finaid
Originally posted by: jarfykk
You can consolidate your loans upon graduation to a fixed rate through either your lender, another lender, or the government itself. However these consolidation programs are much less generous than in previous years (some changes by Congress to make loans cheaper up front...ymmv :-/ ) but all still lock in a set rate, allow you to stretch the payments over a longer terms (e.g. 20 years instead of the normal 10), and generally knock off 0.25% interest for automatic payment from your checking account. With interest rates hovering somewhat near what you can get from a good savings account, the motivation to pay them off early is minimal. Federal student loans also go away upon your death (i.e. do not impact the estate) so something else to consider if you're older/poor health/long loan term.
Again, the advantages of consolidation aren't nearly as good as before since the interest rates on Stafford loans are now fixed. They used to be tied to the 91-day Tbill. Stafford loans issued after July 2006 were the first ones to adopt the fixed rate formula. I lucked out and was able to lock all of mine in at the 2004 Tbill rates when interest rates were near 0.
Well financial aid has awarded me with X amount of both subsidized and unsubsidized loans. I don't believe I have the option to decline.
Sorry for the late response and bringing back a dead topic (Was busy since the Original Post)
Could anybody elaborate this more for me? I've been looking into the issue myself but I'll need to call the college tomorrow during open hours to get the full details. Also what are some key questions I should ask when it comes to Federal Direct Loan Entrance Counseling?
Of course you can decline. In my case, I needed and accepted every bit of financial aid that I could get. But if you have other means, then sure you probably want to avoid a loan.Originally posted by: Ject3189
Originally posted by: Special K
Originally posted by: jarfykk
Interest rates vary and are set each July.
Not anymore. Refer to this link:
Stafford Loan Rates
BTW OP, there seems to be a lot of good information about Stafford loans on that site. Another decent one is Finaid
Originally posted by: jarfykk
You can consolidate your loans upon graduation to a fixed rate through either your lender, another lender, or the government itself. However these consolidation programs are much less generous than in previous years (some changes by Congress to make loans cheaper up front...ymmv :-/ ) but all still lock in a set rate, allow you to stretch the payments over a longer terms (e.g. 20 years instead of the normal 10), and generally knock off 0.25% interest for automatic payment from your checking account. With interest rates hovering somewhat near what you can get from a good savings account, the motivation to pay them off early is minimal. Federal student loans also go away upon your death (i.e. do not impact the estate) so something else to consider if you're older/poor health/long loan term.
Again, the advantages of consolidation aren't nearly as good as before since the interest rates on Stafford loans are now fixed. They used to be tied to the 91-day Tbill. Stafford loans issued after July 2006 were the first ones to adopt the fixed rate formula. I lucked out and was able to lock all of mine in at the 2004 Tbill rates when interest rates were near 0.
Well financial aid has awarded me with X amount of both subsidized and unsubsidized loans. I don't believe I have the option to decline.
Sorry for the late response and bringing back a dead topic (Was busy since the Original Post)
Could anybody elaborate this more for me? I've been looking into the issue myself but I'll need to call the college tomorrow during open hours to get the full details. Also what are some key questions I should ask when it comes to Federal Direct Loan Entrance Counseling?
Originally posted by: Ject3189
I see, so I can just deny the unsubsidized loan and keep the subsidized correct?