Accepting & Paying Loans

<p>Hey everybody,</p>

<p>I will be attending college next year and I am the only child in my family. My parents are both immigrants and going to college is a big thing, I have been doing all I can in this whole college process (researching, etc).</p>

<p>Note: I would like to thank all of you at CC, I don't post a lot but you guys are really helpful. I have been always been intimidated by the students here at CC, your stats are amazing, but y'all know your stuff.</p>

<p>I am offered Federal Perkins Loan and the Federal Subsidized Stafford Loan. I assume that, for these loans, while I am in school there is no interest rate on these loans, until after I graduate and after the grace period? So if I can pay monthly for these loans (I hope to work and pay off everything ASAP before I graduate), then I shouldn't be worried about interest, etc? </p>

<p>So in this case, it wouldn't be necessarily bad to accept loans like these? Or, is it better to try to accept a lesser loan amount (or nothing at all) and try to pay it off? </p>

<p>Obviously, I am planning ahead and making sure I have money at hand.</p>

<p>Thanks guys,</p>

<p>Phong</p>

<p>phong, when you have a student loan, as long as you are enrolled at University, you do not have to pay the loans until after you graduate. The promissory note you sign has the exact rules for that in detail.</p>

<p>However, you can be smart and pay at least half of what you will be required to pay every month while you are at University.
For example, if your student loan holder says that when you graduate you have to pay $300.00 a month, then while you are at University you could pay $150.00 a month in order to get some of that out of the way.
I do that and I have (unfortunately) been at University long enough where I have cut my student loans in half. But, you do not have to do that unless you want to, you can always wait until after you graduate, just read the rules your student loan holder has for that in the promissory note.</p>

<p>However, if you have a secure job and really feel comfortable making payments while in school, call your student loan holder and work out terms. The holder of your student loans always knows the exact rules and all of that. If you question or do not understand anything in the promissory note, call your student loan holder. There is no shame in not understanding something because there is no such thing as a dumb question.</p>

<p>If you do not honestly need a student loan and will not owe money to your University if you go without one, then think if you need anything extra for University. If you honestly think you may need something extra for University, like a computer or something that totally pertains to your schooling, then cancel out whatever you do not need from your loan (call the fin aid office on istructions on how to do that). Like, if you honestly need a laptop with Derive Software for math on it and you know that 900.00 would cover that and your student loan is for 2500.00. Then Subtract 2500.00 from 900.00 and tell the fin aid office at your University to cancel the rest of your loan. Never get more than you honestly need for schooling.</p>

<p>Your initiative is wonderful and good luck to you. I bet your parents are very proud.</p>

<p>
[quote]
am offered Federal Perkins Loan and the Federal Subsidized Stafford Loan. I assume that, for these loans, while I am in school there is no interest rate on these loans, until after I graduate and after the grace period? So if I can pay monthly for these loans (I hope to work and pay off everything ASAP before I graduate), then I shouldn't be worried about interest, etc?

[/quote]
</p>

<p>Since the loans are basically interest free (the government pays the interest) while you are in college there is no pressing need to "pay them off' While you are in school. </p>

<p>Keep in mind while in therory it is nice to work and pay off your loans while you are in college, but all your income over $2650 is assessed at 35% and will raise your EFC which could essentially reduce your grant aid and increase the amount of loans you will have the next year (especially if you don't have enough money to pay tuition and fees)</p>