<p>I am new to this process.</p>
<p>Does anyone know if there exists student loans that charge 0 percent interest?</p>
<p>The closest thing I can think of are subsidized loans, which are essentially 0% interest until you graduate (or quit school), since the government pays your interest while you're still in school.</p>
<p>DS got one, but it was a part of a local schollie type/grant/but ends up being a loan. A grant was funded, and the executors, or whoever it was that is the administrator, gives out 0% interest loans. Not a lot of money, but for our local one it is $1000 per semester. Preserves their capital (well perhaps almost) and the way it is set up will provide much more to many more students.</p>
<p>But that is the only one I know about. There could be some similar near where you live.... But a 0% interest loan???? Maybe from an uncle or Grandma</p>
<p>uncle sam?</p>
<p>The only 0% loans I know about are the federal subsidised loans aphoticmelody mentioned. There are 2:
Perkins loan - 5% interest which the Govt. pays until you graduate/quit college plus a grace period of 9 months. Maximum $4000 a year - no origination fees.
Stafford subsidized loan - 6.8% interest which the govt. pays till you graduate/quit college plus a grace period of 6 months. Maximum varies according to year of college. Has an origination fee.
Both are need based.</p>
<p>Keep in mind that in accordance with President Bush's new 2007 budget, Perkins Loans are set for becoming eliminated due to redundancy or something</p>
<p>Both Perkins and SEOG are possibly being got rid of but apparently that has been proposed before and has not passed. So we will see.</p>
<p>subsidized loans---</p>
<p>what are the lgth of the terms? How long does the student have to pay them off?</p>
<p>Standard term is 10 years. Finaid.org has excellent and up to date information on various types of financial aid
<a href="http://www.finaid.org/loans/studentloan.phtml%5B/url%5D">http://www.finaid.org/loans/studentloan.phtml</a>
<a href="http://www.finaid.org/%5B/url%5D">http://www.finaid.org/</a></p>