Stafford, Perkins loans, Banks, Interest rates?!!! HELP!!!!!?I got my award letter from the Uni. I applied to. I really just wanted grants,and scholarships but they gave me a Federal Sub. Stafford loan to,and my reaction was W.T.F.! I'll looked everywhere to find out what I'm getting myself into if I accept the loan and to make a long story short it's like... |
OK, first off, somewhere you must have checked on your FASFA that you were interest in student loans or else there was a mix up somewhere. Usually, the Fin Aid office doesn't just offer student loans; you have to ask for them. Secondly, just pick a bank. As stated before, you loan will likely be sold at least once before you finish paying for it. They all have to follow the same rules and regulations set down by the Fed Gov to provide Stafford Loans (Gov subsidized student loans). Thirdly, a sub loan means it will not accrue interest while you are in school or deferment. *Deferment is when you meet certain criteria to stop making payments temporary. Such as you go back to school or are unemployed.* As for accepting the loan, that is up to you. You can take the loan and use it to pay for any credits your grants don't cover and buy books and send the rest back (you have 120 days to do this) with no penalties. Or you can open a high interest savings account and store the money in there while you are in school. If you need it, it's there. If you don't, well, you've just been given free money. The Gov is not charging you interest on the money, but it is earning somewhere around 3-4% while you are in school. When you are out, you take the money you borrowed and pay back a big part of your loan. Bottom line is, read everything they give you. What you don't understand, ask about. If the Fin Aid office can't give you an answer, call the lender. Talk to someone there, they are usually more up to date on the changes being handed down by the Gov anyway.
A sub stafford loan is a loan with a fairly low interest rate. When its sub'ed, that means that you wont be adding interest to the amount you owe until after college. And, after graduation, you have about 6 months before you must start repayment.
Really, the lender doesnt matter. I would stick with the same lender every year because then when repayment begins, its just one check.
The perkins loan is basically the same. You get money now and have to pay it back later.
If I were you, I would personally go and meet with a financial aid advisor at your school. If you qualify for the perkins and a sub'd stafford, you may be eligible for some grants as well depending on your school and state you live in.
Any bank you get a loan with will more than likely sell it to Sallie Mae once you have to start making payments. Grants and scholarships are few and far between, so paying for college with loans is the only way. Don't fret...and if you need to, call up Sallie Mae and ask them for their advice if you can't find anything here from the Yahoo groups.
thats pretty funny, you only want grants and scholarships. How dare they make you pay for your own education that is going to benefit you? What were they thinking? It doesnt matter who you get the loan from, it will be eventually be with Sallie Mae anyway.
