<p>I'm getting all the financial aid information from the schools I was accepted to. I'm the kid whose parent's won't (and really, can't) pay for my education. They also know nothing about the financial process and so, I'm sort of left on my own to figure everything out. Luckily, my need is pretty high and I'm getting decent (although not great) financial aid packages. Hopefully somebody can help me out understanding my award from some schools. </p>
<p>Boston University: </p>
<p>Aid to be credited to student account:
BU Grant: $30,000 total. Pretty self explanatory. I don't have to pay this amount back.
Federal Perkins Loan: $2500 total- not exactly sure what this means. I read up on it what I can. From what I understand, it's a low interest loan that I have to pay back. </p>
<p>Other Awards:
Federal Direct Unsub Loan-Additional-$2,000 total. Additional? A little confused on this. Is it a stafford loan?
Federal Direct Subsidized Loan-$3,500 total.
Work Study-$2,000 total.
TOTAL=$40,000 </p>
<p>From looking around this website, I understand that it's best to take out stafford loans and steer clear from private loans. Is the federal direct unsub loan & federal direct subsidized loan the stafford loans? </p>
<p>My parents will cosign for a parent plus option, but if it's not listed, I'm guessing I don't qualify? </p>
<p>Please help me understand this. I'm still waiting for a few more schools but unfortunately they all look so similar.</p>
<p>OH, and just to add. I do have a job and have saved $7,000 thus far, should hopefully be close to $10000 by end of summer. </p>
<p>Parents have agreed to pay for books & to give me spending money.</p>
<p>Yes the direct loans are the same as the Stafford loan. </p>
<p>Perkins and Direct (or Stafford) loans are federal student loans. </p>
<p>Perkins is a subsidized loan (currently) so the govt pays the interest until you graduate or drop below half time plus a 9 month grace period. After that you have to start paying the interest and the principal back. The interest rate is 5%. It has no origination fees.</p>
<p>Direct/Stafford subsidized is a subsidized loan so the govt pays the interest until you graduate or drop below half time plus a 6 month grace period. After that you have to start paying the interest and the principal back. The interest rate for the 2011-2012 school year is 3.4%. It has a small origination fee. (sub loan interest rates are scheduled to jump back to 6.8% for loans issued after 2011-2012 - we probably won’t know how/if that will change till sometime in 2012).</p>
<p>Direct/Stafford unsubsidized is an unsubsidized loan so you are responsible for the interest from the day the loan is disbursed to you. You can defer the interest payments till you graduate or drop below half time plus a 6 month grace period but the interest will be added to your loan. After that you have to start paying the interest and the principal back. The interest rate for the 2011-2012 school year is 6.8%. It has a small origination fee.</p>
<p>Parent PLUS is not a loan your parents cosign for, it is a loan they take out in their name. If the school has met your need they would not include the PLUS in you aid package, but that does not mean your parents can not apply for it.</p>
<p>Thanks, that definitely cleared things up for me. No, I didn’t get any pell grants. My EFC is close to $7,000. </p>
<p>& You really think that’s a good package? I’m trying not to take out any private loans, at least for the first year. Which means work, work, work. </p>
<p>Thanks again. Any other input would be great.</p>
<p>I personally don’t think that’s a particularly good package. The COA for BU for 2011-2012 is nearly $57,000 a year. BU is giving you $30,000. That leaves $27,000 you need to cover. You’ve got $8,000 of federal loans available between the Stafford and the Perkins, and the possibility (not the guarantee) of earning an additional $2,000 through work study. That leaves $17,000 - your EFC of $7,000 and a gap of $10,000. If your parents can’t or won’t pay their EFC, you personally need to come up with an additional $17,000 a year (it may be less if you can get by on less than the estimated expenses in BU’s COA). You have $10,000 saved for this year, but what about the next 3 years? If you have to borrow a good portion of the shortfall, you’re looking at a huge student loan repayment obligation at the end of the day. If I were in your shoes, I would not consider this an affordable school.</p>
<p>):
I’m getting really worried about this. My parents have agreed to pay for books & personal expenses, cutting the COA to a little over $52,000, but you’re right, that’s still a lot. I’m planning on working (outside of the work study) as well but I don’t want to be completely poor. Unfortunately, of the schools that I got my financial aid packages back, this was one of the highest. Even the state schools gave me practically nothing.</p>
<p>Which school gave you the most financial aid is almost irrelevant - what matters is which one gave you the most relative to total COA. Do you have to pay $27,000 or more at all of your schools (either out of pocket or through loans)? If so, that’s going to be tough with little help from your parents.</p>