<p>So I've just checked my financial status for Berkeley, and it says i've received a federal direct unsubsidized loan of $995.00 out of $1,000 for my fall semester. Apparently, my first payment is ~$4000, but my other scholarships/grants can cover it (without the unsub. loan).</p>
<p>I was wondering if it is possible to cancel my unsubsidized loan without incurring any sort of penalty on my part. Oh yeah, my first payment deadline is on August 15.</p>
<p>Is it too late to cancel?</p>
<p>Another question-if I do accept my unsubsidized loan, how do I pay the interest monthly? Does it get deducted from my university financial account? from my bank savings/checkings account?</p>
<p>help is reallllllly appreciated! thanks!</p>
<p>Call your financial aid office & ask them to return the loan. Some schools have a form you can fill out. Make sure you also tell them to cancel the 2nd disbursement, or you'll be in the same boat at semester.</p>
<p>I am pretty sure that once your loan has paid out, you're responsible for the fees they charge you to originate it. What you'd be doing now is "paying off" the loan, perhaps with a little bit extra to cover the part of it that went to fees.</p>
<p>Definitely do contact the FAO ASAP and they can give you the details.</p>
<p>To answer your other question, interest is charged to your loan with the bank -- unless you ask, you'll never see the statements of how much is owed. There's some online clearinghouse where you can view your loan info, but I don't recall what it is off-hand. Anyway, until you graduate and enter the "it's been 6 months, now you owe us money" repayment phase, you'll never be billed for it; it will just be added to the principal of your loan and continually compounded until that day comes. You can pay it, or any amount, at any time without penalty, but you have to ask. Again, talk to the FAO to get the details and correct info.</p>