I’m confused about how federal loan get distributed. My son is getting information that doesn’t really make sense. So I understand that it can get distributed twice a year. Once now and second time in January. But when you get your January distribution, does the interest for that chunk of money starts in January or goes back to beginning of school year? His school told him the interest for both portions starts in beginning of school year. And that just doesn’t make sense. I’m hoping you guys can explain it to me
The loans start cranking out interest when the money is distributed. So the amounts distributed in January will start generating interest at that time, not st the beginning of the year.
I thought your son is getting a free ride in med school, what is the fed loan for…lol?
Grad student loan has becoming such a big market that fed gov. is taking every chance to charge the interest to maximize their return. At least doctors would be able to pay them back…not so for other professions (MBAs…).
One can decline the loan. So Govt can’t charge interest for money not disbursed.
He is. But he got extra scholarship for room and board for only couple of years. So now he needs to take out loans so he can eat. Lol