<p>I was wondering if filling out the FAFSA will give me a shot at any interest free loans? I'm not planning on using FAFSA right now because my parents earn too much money to get any need-based aid and I'm planning on attending an OOS public school. My dad, however, wants to know if I can get interest-free loans so I can invest the money elsewhere. Any advice?</p>
<p>I don’t think there are interest free loans, but there are low interest loans you qualify for if you do FAFSA. You don’t have to start paying until 6 months after you graduate. I would do it, even if you know your parents make too much to get any other aid. I filled it out so my son could get the $5500 his first year, it is $7500 the second year I think. I know we make too much for him to get anything else but it is worth it for us to do anyway, so he can get this loan. Otherwise, since he has no credit history we would have to co-sign for a loan somewhere else.</p>
<p>In a word, no. Some schools may include them in their financial aid packages when they are loan funds they themselves own. But such loans along with the subsidized Stafford and Perkins, which are interest free while you are in school are only obtainable if you have NEED. You can borrow, as a student up to $5500 from Staffords, whether you have need or not but the interest starts accruing right away and it’s not a really good deal given the current prime rate. It’s a good deal considering your age. lack of credit, work history and current income situation. Your parents are eligible to apply for PLUS and some states have other student loan programs, but again the interests are not low hovering in the 8% range (don’t remember exact number). They are not intended to be such good deals that people can make money investing elsewhere, but to be used in investing in higher education for students.</p>