<p>So after applying, this is what I got:</p>
<p>Anticipated Aid<br>
2008 Fall FFELP-Stafford Sub 01 (1,750.00)
2008 Fall FFELP-Stafford Usub 09 (1,000.00)</p>
<p>This is only for the fall term.</p>
<p>My question is, I know this is how much I can be lent, but where do I go to borrow? Just at a bank like PNC?</p>
<p>Also, what exactly is the difference between Sub and Unsub..</p>
<p>Subsidized - 6% interest rate. Government pays the interest until you graduate plus 6 month grace period. Repayment does not start until the end of the grace period.</p>
<p>Unsubsidized - 6.8% interest rate. You are responsible for the interest from day 1. The interest payment may be deferred until after graduation but will accumulate and be added to the amount of the loan.</p>
<p>Where you go to get the loan depends on your school. My daughter's school is a direct lender so they lend her the money - she just fills out the paperwork (online) and they pay the money into her bursars account. If the school is not a direct lender they may have a list of preferred lenders.</p>
<p>what about if you go straight from College to Grad school, do you have to start paying the interest? So it is unwise to take the unsubsidized if you can afford not to?</p>
<p>oh, and where would I borrow the money from?</p>
<p>Usually the loans will be deferred if you continue to graduate school. If you can manage without the unsubsidized loan then do not take it out as the interest will be accumulating unless you pay it monthly. For instance the $1000 at 6.8% a year will have grown to a debt of $1300 at the end of 4 years.</p>
<p>For our kids we encourage them to take the subsidized loans (interest free money for 4 years) but would discourage unsub if it is possible to manage without.</p>
<p>If a student takes a subsidized stafford and then goes on to a PhD program, so 5-7 years, I know the payment is deferred, but is interest also deferred?</p>
<p>I believe the govt continues to pay the interest on subsidized loans if the student is still in school.</p>
<p>I am clueless when it comes to fin. aid, so where do I get the loan? Just a bank? how do you do it?</p>
<p>Ask your school first if they are a direct lender. If they are not ask if they have a list of lenders. Also do an online search for student loan lenders. Some I have seen mentioned are Discover student loans, Citi, Chase, Fannie Mae (though there have been some negative remarks about them on this forum). Most of these can be done online. Compare their offers - Stafford loans often have orientation fees ( a fee charged for getting the loan - may be up to 3% and would be deducted from the amount given to you - so if the fee is 2% and the loan is $1000 you would only receive $980) and some companies may have lower fees than others. Others give interest rate breaks for on time payments. Compare them.</p>
<p>The school awarded a FFEL loan, so they are not giving the option of a direct loan. FFEL means that the student will have to apply to a lender for the loan (direct loans are borrowed from the government). Your school may have a list of preferred lenders, although you are not required to go through their lenders. You may choose your own, if you'd like. You can start by researching the preferred lenders, looking for things like origination fees, interest rate reductions for on-time & direct payments, etc. My D used her school's preferred lender last year, and when she transfers schools this year she will also borrow through them (even though they are not a preferred lender for the new school). Try to choose a lender that has good reviews, because it will be easiest for you if all of your borrowing throughout college is with a single lender.</p>
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[QUOTE]
Ask your school first if they are a direct lender. If they are not ask if they have a list of lenders. Also do an online search for student loan lenders. Some I have seen mentioned are Discover student loans, Citi, Chase, Fannie Mae (though there have been some negative remarks about them on this forum). Most of these can be done online. Compare their offers - Stafford loans often have orientation fees ( a fee charged for getting the loan - may be up to 3% and would be deducted from the amount given to you - so if the fee is 2% and the loan is $1000 you would only receive $980) and some companies may have lower fees than others. Others give interest rate breaks for on time payments. Compare them.
[/QUOTE]
</p>
<p>Crap, so there is a fee to this?</p>
<p>I just picked a random lender when I did this just because it wanted me to pick one. Does this mean I should call both the school and the lender to change it?</p>
<p>Depends on the lender. Some charge a fee some do not. Have you already done the application?</p>
<p>Yea. It's not a big deal though. The fee is deducted from the loan so I don't really care.</p>
<p>I believe the guidelines are set by the fed. Govt so most of them have a 2% fee = 20 bucks.</p>
<p>I don't think it's possible to escape this fee though......So I gotta add 20 bucks to my tutition bill. :(</p>
<p>The fee is not a government thing. It is possible that your lender does not charge an origination fee. Check the terms of your loan.</p>
<p>I am going to take a second to stand on my soapbox here ... PLEASE read up on your loans, the terms, etc. This is really, really important! Someday, you are going to have to pay this money back. Your goal is to keep the money you owe to a minimum. It might not seem like a big deal today, but it sure will be when you start repayment. I have heard of kids who are paying more on their loans than I pay for my morgage on a 4 bedroom, 2-1/2 bath house on 3/4 acre. The less you borrow ... the less you'll owe ... the more you'll be able to keep for yourself. It's worth the hassle of googling until you find a site that explains it well enough for you!</p>