<p>From UCI, they are offering me:</p>
<p>Federal Direct Subsidized Loan to meet need $3,500.00<br>
Federal Direct Unsubsidized Loan to meet need $1,900.00<br>
Federal Perkins Loan $1,500.00</p>
<p>Should I accept all of them?
What does subsidized/unsubsidized mean?</p>
<p>Subsidized means you don’t have to pay the interests for that loan, while unsubsidized means you eventually do have to pay the interests for the loan.</p>
<p>Depends if you need them or not.</p>
<p>Subsidized means the gov’t is paying the interest for you, and then the interest will begin to accrue after the grace period upon graduation.</p>
<p>Unsub means the interest begins to accrue from the day you receive the funds.</p>
<p>I would say take subsidized if you think money may be an issue in the future. You can even treat it as if it’s savings/investments. But the fact that there’s such a little additional cost if you pay it soon after graduation, it’s like having money to invest and/or have back-up money if you need it.
Someone correct me if I’m wrong though!</p>
<p>Subsidized = government will pay interest while you are in college. Once you graduate you’ll have to pay any interest that accrues as well as the principal ($3500).</p>
<p>Unsubsidized = just like a normal loan; interest collects the second you take out the loan.</p>
<p>If you can afford it/work for it I’d recommend not to take the unsubsidized loan because the interest rate will be higher. Right now it’s looking to be a 2% difference (correct me if I’m wrong), but if Obama is able to push it through Congress the subsidized loans might lower the interest rate back down to 3.4% as opposed to 6.8% (a very good freakin’ deal). One thing you should not do is have your parents take a loan or take a private loan from a bank. Not worth it.</p>
<p>TL;DR: Take the subsidized loan, take the Perkins and unsub if you for sure can’t pay for it out of pocket.</p>
<p>thanks guys. my parents just told me to take the whole loan. they said they’ll help me pay it back. and it said it was like 5% interest rate after 9 months i graduate from college</p>
<p>I dont think I’ll be able to take out loans … the conditions on the parental loan includes not having an adverse credit history. My mother has a poor credit score and I dont really have anyone else to take out a loan on her behalf. </p>
<p>Would be so helpful though, with housing especially. With my salary now I’d be able to afford it since I work full time while still being able to go to school full time. Once I transfer I feel like that would be near impossible to maintain :l</p>
<p>Sent from my HTC Evo 3D using CC</p>
<p>Don’t take the parental loan; you’re better off trying to increase your subsidized loan or working.</p>