<p>Hi I've been getting different information and confused about loans. My teacher told me that when he went to school he had taken out a loan at an outrageously low interest rate (like .5%) that did not start adding interest until 6 months after graduation. My Financial Aid is roughly 15,000 broken up in Perkins, Stafford, and PLUS loans. These rates are much higher. Do they accumulate interest over the year or do they only gather interest after graduation. When do I need to pay these back (during school or after graduation?). Also, how is a private loan from a bank different from one from FAFSA. Wachovia offers a loan that does not need to be paid back 6 months after graduation, but does it accumulate interest until then.</p>
<p>Thanks in Advance, I am really confused on this...</p>
<p>No .5% interest rates out there now.</p>
<p>Perkins loan: 5% interest rate. The Govt pays the interest while you are in college at least 1/2 time and for a 9 month grace period afterwards. Then you start paying the interest and repaying the loan.</p>
<p>Stafford loan:Can be either
subsidized:6% interest rate for 2008-2009 school year. (is droppping gradually over the next few days) Govt pays the interest till 6 months after you finish school or drop below 1/2 time. Then you are responsible for the interest and start repaying the loan and the interest.
unsubsidized:6.8% interest rate. You are responsible for interest from day 1. Interest can be capitalized (is added to the loan amount and you will pay interest on the loan plus the interest). Repayment of loan starts months after finishing school/dropping below 1/2 time.</p>
<p>finaid.org has more information on loans here
FinAid</a> | Student Loans</p>