<p>In my financial aid folder, I have Federal Perkins Loan, Federal Direct Subsidized Loan, and Parent Loan UCSC App Required. How much interest does these loans charge?</p>
<p>bump* need the questions answer. The online answer are too confusing</p>
<p>For new loans issued after July 1, 2006, all loans will be fixed rate:
Stafford Loan - 6.8%
PLUS loan - 8.5%
Perkins loan - 5%.</p>
<p>Does Federal Direct Subsidized Loan charge any interest? Is PLUS loan parents loans? Thanks for the answers.</p>
<p>*Does Federal Direct Subsidized Loan charge any interest? * Yes, but due to a technicality, the interest for the Direct Subsidized loan may be less (7.9%) for PLUS loans. For Stafford it is the same.</p>
<p>"Federal Direct Subsidized Loan" means that the college you attend is lending you the money. The other type of loan is called FFEL, and for those the lender is a private corporation, like Citibank. </p>
<p>Is PLUS loan parents loans? Yes.</p>
<p>thanks for the answer calmom. I found this in a website, so I was kind of confuse by it.
Direct and FFEL Stafford Loans are either subsidized or unsubsidized. You can receive a subsidized loan and an unsubsidized loan for the same enrollment period.</p>
<p>A subsidized loan is awarded on the basis of financial need (see financial need page). You wont be charged any interest before you begin repayment or during authorized periods of deferment). The federal government subsidizes the interest during these periods.
Can you explain this quote in simpler form. I'm not good with these different loans. What is the period of deferment?</p>
<p>from different website:
<a href="http://www.uiowa.edu/financial-aid/loans/subsidized.html%5B/url%5D">http://www.uiowa.edu/financial-aid/loans/subsidized.html</a>
It say that there's no interest while you are at school. Is this also true for UC's subsidized loan?</p>
<p>You don't pay any interest on these loans while you are in school. </p>
<p>You have to start making payments 6 months after you graduate. </p>
<p>You start paying interest at the time you have to start making payments.</p>
<p>so lets say i accept the Federal Direct Subsidized Loan and start making payment Sept. while still in college, do i get charge interest? Thanks for the quick reply</p>
<p>You don't pay while you are in school -- you don't start payments until after you graduate.</p>
<p>When interest starts to be charged, it only runs on the amount of the loan that is outstanding - so if you prepay the loan you will reduce the overall interest. So it would be theoretically possible to take the stafford loan and then pay back the full amount before the first payment is due, and not have to pay any interest. </p>
<p>But the loans do have origination fees - so you are going to end up paying that in any event.</p>
<p>thanks calmom for the info. :)</p>