Financial Advice for a first-time borrower

Paying for College
1

<p>I'm currently a sophomore at UNC who had freshmen year fully paid for through grants. Since my mom has remarried, my EFC has changed and now I have to either get a PLUS loan or a private loan to cover the rest of my charges that the university doesn't cover. </p>

<p>My dad (remarried in Georgia) doesn't mind getting a PLUS loan, he has great credit, however, say I get a scholarship during the middle of the semester...can that scholarship be put towards paying off my dad's PLUS loan? </p>

<p>Can any scholarship I receive during the semester can be put towards paying off any loan, even my federal stafford loan?</p>

<p>Should I think about getting a private loan or a direct PLUS loan first? I have no credit history, but I do have a viable cosigner. I was thinking about the Discover student loan and Wells Fargo one (I have an account with them). What should I do?</p>

<p>P.S. I deferred my bill and its due date is now October 11. Do I have enough time between now and then to get a loan, have it approved, and have it dispersed? (My financial aid package didn't come to me until 2 days before classes because of some discrepancies with my mom's taxes, etc. It took a long time for it to process, which is why I'm asking now)</p>

2

<p>You need to ask the school how they would handle a scholarship. Some schools will just reduce any funds THEY put toward your financial need since technically a scholarship reduces your need. Others will allow you to put it toward the student’s fair share portion (reducing work study, etc). </p>

<p>You do have enough time to get a loan but I wouldn’t feel secure making recommendations.</p>

3

<p>Erin’s Dad is right…a scholarship might get put towards any aid you’re still getting.</p>

<p>How much do you need to borrow each year? Will you be responsible for paying back the loans or will your dad/parents pay?</p>

4

<p>A parent is the ones who would apply for a PLUS loan…not you (the student). If you try to get a private loan, you will need a cosigner.</p>

<p>If you get a scholarship in the middle of the semester (please do let us here all know about such scholarships…I’ve honestly never heard of one that is awarded mid year like that)…couldn’t you just take LESS of a loan for the second term…or use the extra money you have taken out in loans to repay the LOAN?</p>