<p>can someone explain to me the differences between FEDERAL PERKINS LOAN , DIRECT SUBSIDIZED LOAN, and DIRECT UNSUBSIDIZED LOAN ? like will they charge me with interest every year or after i graduate? can i pay back little by little? and how will i pay off my loans (by writing checks?)?
ALSO, can i accept work study even if i might not be able to work during the fall? if i wont be able to get a job (cuz i heard its limited), will i not get my $1500?</p>
<p>If I remember correctly…</p>
<p>Federal Perkins – Loan from the school (UCLA). While you are in school, you will NOT be charged interest.
Direct Subsidized – Loan from government (though there may be a third party that facilitates the process either in obtaining paying the loan) : The government pays any interest accrued so long as you’re still in school or graduate.
Direct Unsubsidized – ^ Same as above. Except, the interest accrued on your loan does NOT get paid off by the government (but does not get added onto the principle.)</p>
<p>You do NOT have to pay any of the above until you are no longer enrolled in school (I don’t think you have to pay up if you only take off for one quarter…) or until you graduate. You will get a grace period of a certain amount of months. </p>
<p>I’m not sure what type of interest the above loans are (i.e. daily, yearly interest). I remember I asked, and someone said “simple.” Whatever that means. </p>
<p>You can always make payments on the principle or interest (if applicable), while you are in school. You would basically find your lender-facilitator, and pay through them. (This is the bank or group that you choose to do business with, or government? Things are slightly different from the way things were done in my year compared to yours.) Normally, you should be able to make bank transfer payments. (As far as I know, you can’t make it with a debit/credit card, so no “reward points,” I’ve tried with my lender, lol.)</p>
<p>What I normally do is accept the full amount for both the Perkins and Subsidized loan, since <em>I</em> don’t really have “pay extra” for these guys. (No interest charged, or interest paid for me.) You can always just pay these back should you have extra… Then, if necessary, I accept an Unsubsidized loan amount that I think would be needed to pay off all school expenses. </p>
<p>You can accept the workstudy money even if you do not get a job. But note, that you will NOT get any of that money, unless you do workstudy. I don’t see any downside to not accepting workstudy money, cause you never know. (Unless someone can give me a reason as to any negatives.)</p>
<p>For a more legit source on “Types of Aid”:
[UCLA</a> Financial Aid Office !](<a href=“http://www.fao.ucla.edu/fao_information_types.htm]UCLA”>http://www.fao.ucla.edu/fao_information_types.htm)</p>
<p>so for unsubsidized, ill be charged with interest throughout my whole four years?!?!
i think i remember someone saying one of the loans is that theyll be no interest if i pay little by little. is that true?</p>
<p>idk about when interest is mae for Unsubsidized, but i know the interest rate is 6.8%? Something around there. My mom and I chose to only get the perkins and subsidized.</p>
<p>why? because of the high interest? would you recommend taking all loans first year, then not taking unsubsidized starting second year?</p>
<p>i think it was because of the high interest and how they accrue that interest onto the principal. I’m a first year too so i can’t recommend anything lol.</p>
<p>Please read the link I’ve attached above.</p>
<hr>
<p>"Federal Perkins Loans </p>
<p>… The loan interest rate is 5 percent. Loan repayment and interest accrual begin either six or nine months after graduation or less than half-time enrollment.</p>
<p>…</p>
<p>Subsidized Direct Loans </p>
<p>… Interest rate is fixed at… 4.5% for loans first disbursed on/after July 1, 2010… Interest is subsidized (paid) by the government until six months after you leave school or drop below half-time enrollment status. </p>
<p>Unsubsidized Direct Loans </p>
<p>… Interest rate is fixed at 6.8%. Interest accrues from the date of disbursement, but the extra costs of accrual can be avoided by making regular interest payments while in school. Loan goes into repayment six months after student graduates or ceases half-time enrollment."</p>
<hr>
<p>It’s not really clear on this, but what the last description means is that if you don’t pay off interest on your unsubsidized loan while in school, the interest will be added on to the principle when your loan goes into “repayment status.”</p>
<p>More on differences between subsidized and unsubsidized Stafford:
[Frequently</a> asked questions about Stafford Loans](<a href=“http://nl.edu/studentfinance/faqs/stafford-loans.cfm]Frequently”>http://nl.edu/studentfinance/faqs/stafford-loans.cfm)</p>
<p>Only take the unsubsidized if you have to, but don’t be short on tuition/housing.
(A side note about private loans: I don’t know if there’s any merit to this, but I was told during my high school years to avoid private loans as much as possible.)</p>