FINANCIAL AID packages came from one of my school

<p>I got my financial aid package.
It lists the three loans, but each loan has a different amount.
Can i just take out $5500 from the federal government or does that amount have to be approved from the school??</p>

<p>Which loans were you offered? I am guessing subsidized Stafford=$3500, unsubsidized Stafford=$2000 … and maybe a Perkins loan or a parent PLUS loan.</p>

<p>Keeping loans to a minimum is wise. If you want to borrow $5500 in Stafford loans, it is done through your school. All schools (with a VERY few exceptions) use the government’s Direct Lending system for student loans.</p>

<p>YES those two and the parent PLUS.</p>

<p>Is a subsidized stafford and unsubsidized stafford the same thing? So does that mean the highest it could go up to is 5500?</p>

<p>I’m just confused about that part.</p>

<p>Neither sub nor unsub has to be repaid while you are in school at least half time. Once you graduate, or leave school, or drop below half time, you have a grace period of 6 months & then the loans go into repayment. The difference between the two is that sub loans are 3.4% for 11-12, and the interest is “subsidized” by the government while you are not in repayment (that is, it doesn’t accumulate until you are in repayment). Unsubsidized loans have a higher interest rate, 6.8%, and the interest is not subsidized … meaning that while you don’t have to repay it while in school, the interest begins to accumulate when the loan is disbursed.</p>

<p>The most a freshman can borrow in Stafford loans is $5500. Sophomore max is $6500, and jr/sr max is $7500.</p>

<p>For the Parent PLUS loans, your parents will have to qualify for them. If they apply and are rejected, however, you can borrow some additional money under the Stafford program.</p>

<p>Parents have to qualify for PLUS loans every year, so it is possible that they could be approved this year, but not in subsequent years, since their credit scores will be reduced every time a loan is disbursed.</p>

<p>Many parents on this forum think you should not go further into debt than the Stafford loan maximum amounts of about $27K total for all four undergrad years.</p>

<p>How much is the Parent Plus loan for?</p>

<p>have you talked to your parents about that loan? If not, you need to. Some parents can’t/won’t agree to those.</p>

<p>If you don’t take the Plus loan, will your parents pay that amount instead?</p>

<p>thanks for all the information!!!</p>

<p>I will be only taking out the $5500 in loans for freshmen year.</p>

<p>i won’t be taking out the parent loan.</p>