Student Loan Questions

[YayYay]

Pretty soon I will be needing to borrow money in order to pay for living expenses while school. I am having some trouble putting all the information together. I keep hearing and reading about loans that you don't pay until you graduate. I can't find any loans that does that. What are some good student loans out there and which do you guys use? I have read up on the Direct Loans but that requres monthly payments and for the amount I want, the interest accumulated adds to the principle. I think a 15 thousand dollar loan, I wll end up paying about 25 thousand. I might as well borrow from the Mob.

 

[gittyup]

Try to get a gov subsidized Stafford loan.

 

[YayYay]

I don't get why some people are allowed to pay after graduation and some are not. If you're wondering why im asking here instead of my Financial Aid office, its because school is closed.

 

[SaintAshlar]

Yeah... ask for a subsidized Stafford loan.

 

[churchdoesmatter]

stafford and perkins loans are the ones that are low interest and you pay back with flexible payments after you graduate... they give you a grace period (6 months), so you can use the grace period to find a job and then pay back the loan. the only way you can get a stafford or perkins loan or both, is to fill out a FAFSA .. www.fafsa.ed.gov hope this helps!

 

[YayYay]

<< stafford and perkins loans are the ones that are low interest and you pay back with flexible payments after you graduate... they give you a grace period (6 months), so you can use the grace period to find a job and then pay back the loan. the only way you can get a stafford or perkins loan or both, is to fill out a FAFSA .. www.fafsa.ed.gov hope this helps! >>



Thanks man, but how come on their site it says theres monthly payments.

 

[churchdoesmatter]

have you filled out a Free application for student aid?? FAFSA.

 

[randomlinh]

citibank also has a deferred loan program. i need to find something i can get money to me for.. i may have to move off campus

 

[jbod]

I recently graduated college and all the loans I received I didn't have to pay back until I got out. Those included Stafford Subsidized, unsunsubsidized, and Perkins. I think you are misunderstanding the application.

BTW, try to get those Pell Grants if you can they come in real handy.

 

[ThaGrandCow]

Wow this is kinda scary...
Recently just as something comes on my mind someone makes a post about it.
Just 10 minutes ago I was thinking about school and how to pay for it, and now this thread comes up.
Thanks guys, you answered my question before I could even ask it

 

[Sir Fredrick]

<< have you filled out a Free application for student aid?? FAFSA. >>



Yeah, do that.
The reason some students can get subsidized loans and others cannot is based on your need or ability to pay.
They take your financial information, run it through an algorithm, and determine how much you and/or your family (if you are a dependent) can afford to pay for school. If your tuition is more than that, then you qualify for financial aid in the form of scholarships, grants, or loans. (it's up to your school...but they are obligated to meet that "need" in one form or another)

For example, let's say that the FAFSA form says you can afford to pay $10,000/year to go to school, but let's say your school costs $30,000. You're eligible for $20,000 in financial aid.
up to ~$2,562 can be in the form of a federal direct subsidized loan
~$2000 can be in the form of work study
not sure how much can be in the form of a Perkins loan (another subsidized loan)
Any amount can be covered in scholarships and grants
Any remaining amount will probably be offered in the form of a PLUS loan, which is a bad deal 'cause it's not subsidized...meaning the interest will be accumulating while you're in school. mucho sucko...you're often better off just getting a loan from the bank or getting some sort of "payment plan" with your school, where you can pay your tuition bill in installments, without interest.

 

[YayYay]

What happens if you can repay the loan in full before you graduate? I can easily pay it off before graduating.