<p>I just received a financial aid package giving me a $3500 sub stafford loan, $2000 unsub stafford loan, and a $1500 perkins loan. I understand the interest rates is what makes them different. I was wondering, specifically, when do I have to have my money ready to turn in for tuition, fees, room, and board? Is it a monthly payment for room and board? Is tuition only due at the start of the semester? Also, if I take out the $1500 loan can I repay it at the end of the academic year? Also, if they gave me this $1500 ($750 per semester) do I have to accept all of the money or can I choose to take say only $600?</p>
<p>I know that's a lot but thank you!</p>
<p>P.S. This pacakage is from the University of Miami, if that helps</p>
<p>You don’t have to take out the loans if you don’t need them, and you can start paying before graduation if you want to. However, most students don’t start paying back their loans until they have graduated or withdrawn from college.</p>
<p>As for your other questions, you should ask U of Miami. Different colleges and universities have different policies about payment schedules.</p>
<p>Typically, all the money for a given semester (tuition, fees, R+B) is due sometime before the semester starts, in a lump sum. The amount of time can vary, I think several weeks is pretty typical, but each school will have its own schedule.</p>
<p>Many schools offer a program where for a small fee ($50/year or so) they will let you divide the amount due into a series of equal payments, usually 9 or 10 to cover the entire year. You would have to check with U of Miami to see exactly what kind of program they offer, if any. It is probably on their web site somewhere.</p>
<p>All of these loans are taken out by the student, not the parents. Because the loans are guaranteed by the federal government, they are offered at a lower interest rate than the borrower would otherwise be able to get for a private loan. No payments are expected on the loans while the student is enrolled as a full- or half-time student.</p>
<p>The main differences between these loan programs include the following:</p>
<p>Perkins loans are need-based loans that are only available to low-income students. This type of loan is subsidized by the government so that interest does not begin to accrue until the borrower begins to repay the loan approximately 9 months after graduation (or otherwise leaves full-time status.)</p>
<p>With subsidized loans, the interest is paid by the federal government while the student is in school, during the grace period, and during authorized deferment. </p>
<p>Unsubsidized loans, on the other hand, do accrue interest while the student is in school; the borrower can either pay the interest while they’re in school or have it added to the principal of the loan.</p>
<p>Perkins are the most favorable, followed by subsidized federal loans, and finally unsubsidized loans. </p>
<p>You could certainly choose to take, say, only the Perkins loan and the subsidized federal loan, and refuse the unsubsidized loan. I don’t know whether you would be able to lower the amount you borrow, though. That would be a good question to ask the financial aid office.</p>
<p>I would at the very least take the Perkins and subsidized Stafford, even if they just sit in the bank. If your situation changes in the future, you will have this as a cushion. </p>
<p>If you don’t need it, you can pay it all back when you graduate and it won’t have cost you anything.</p>
This is no longer true regarding the grace period. See below:</p>
<p>Direct Subsidized loans will not be eligible for an interest subsidy during the six-month grace period.</p>
<pre><code>Subsidized loans are loans for which the borrower is not responsible for the interest while the student is enrolled in college on at least a half-time basis, when the loan is in the six-month grace period after the student is no longer enrolled at least half time, or if the loan is in a deferment status. This provision eliminates the interest subsidy provided during the six-month grace period for subsidized loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014. If you receive a subsidized loan during this timeframe, you will be responsible for the interest that accrues while your loan is in the grace period. You do not have to make payments during the grace period (unless you choose to) but the interest will be added (capitalized) to the principal amount of your loan when the grace period ends. This provision does not eliminate the interest subsidy while the borrower is in school or during eligible periods of deferment.
</code></pre>
<p>Thanks for the info! I called the UM financial aid office today and they said I could take less than the amount of the loan they offered me. I think if I end up at UM I will only take the subsidized and perkins loans =)</p>
<p>christena, you can take all the loans and the money that you do not need just let it sit in the bank because the percentage is so low that you cannot get a personal loan that has these percentage rates…in your college years, emergencies happen and that can be your cushion in those cases…after your senior year, when no emergencies occured during your college years, pay the loans with the money that you have in the bank. My 2 cents</p>
<p>Be wary of staff members who speak in a brusque or “everybody does this” tone of voice. Take only the loans you have to have – just because everyone else takes the whole trough, you may not need to. </p>
<p>Ask lots of questions – I would do it by email so that you get a written response. See if you can get assigned to one fin aid officer so there is consistency. Be polite and appreciative – but be very particular. It was people uncomfortable with asking questions and comparing products that was one piece of the mortgage loan debacle. </p>
<p>There should be a lot of information on the college website – read through it carefully and make a list of questions – then read through it again. Keep after it as conquering this may save you thousands of dollars over four years. </p>
<p>Common errors: thinking you “need” the fanciest dorm or eating plan so student takes loans to cover those levels of spending.<br>
Thinking the “kick back” is free money (by this, I mean the university bills you too much and then refunds some of the overcharge and you go shopping on the refund).</p>
<p>Thanks Olymom! I agree with u; I want the least amount of loans possible. I have called the school and did get the answers to several of my questions :)</p>