<p>Which is better to do- borrow the cost per semester or borrow the cost for the whole year? Or does it usually just depend on who you're getting your loan from?</p>
<p>Being a parent - borrowing once a year is administratively enough for me - even thoug the funds are disbursed each semester. For Stafford’s, PLUS loans - you don’t start paying until 60 days after the second disbursement. You can alos defer while in school, but interest accrues. I can’t comment of private loans. I believe most FA offices prefer once a year, but I am aware you can borrow each semester. You will need to verify this with the specific college FA office.</p>
<p>CJ</p>
<p>^
What he said. And you can apply to any kind of private loans whenever you want as many times as you want.</p>
<p>I take out how much I need once a year instead of every semester so I would get 1 inquiry instead of 2 because each hard inquiry lowers my credit score. I worry about my credit score more then saving a bit of accruing interests.</p>
<p>Stafford & Perkins loans must be borrowed on an annual basis. If the student doesn’t need the money second semester, he can cancel that disbursement. If he turns down the loan first semester but finds he needs it second semester, he can reinstate his loan (but it will still be paid in two disbursements if he was at least half time at the end of the first semester).</p>