<p>Hi, I got my financial aid letter today, and it says I got the following with dollar amounts of course. I just wanted to know because I have no idea what these mean. Do I have to pay them back, or is it free? How does it work and what are the difference between them? Thanks for your input.</p>
<p>Parent PLUS Loan Eligibility Offered </p>
<p>Fed Direct Loan Subsidized Offered </p>
<p>Fed Direct Loan Unsubsidized Offered</p>
<p>my understanding is loan means you have to pay back…i got the similar thing and the interest rate it said for parent plus loan is 7.9%…which means we have to pay</p>
<p>Yea thats exactly what I got last year. Its not much “aid.” They are loans that you will have to pay back. The 2 Fed Direct Loans go under your name and you can only take out up to $5500 I believe with those loans. The Parent PLUS Loan has an interest rate of 7.9% which sucks and your parents take that out. Interest starts accruing as soon as the loan is disbursed for the Parent PLUS</p>
<p>So should I take them?</p>
<p>yodelo</p>
<p>accepting the offer is a decision that you have to make with your parents. My son got the same kind of award (all loans) and we are not even thinking about accepting the offer. Taking on more almost $200,000 in loans for an undergraduate degree is absurd, especially when my son was offered a full ride at other universities. Are your parents willing or able to take on the loans?</p>
<p>Good luck with your decision.</p>