In general the best loans are the Federal Subsidized loans. Not only do they have a pretty low interest rate, but the interest doesn’t even start until after you’re out of school. Next you want to get the Federal Unsubsidized – interest starts accruing right away, but the rate is still low.
Definitely minimize parent loans and any personal loans you’re tempted to get.
Take YOUR federal unsubsidized/Subsidized loans, as their rates are the lowest.
Do not have them take their Parent PLUS loans (“Federal Parent Loan Eligibility”).
Thank them for the $7,000 and work for the $5,815.
Your parents shouldn’t take out any loans!
If they have $7,000 in a college fund for you and you get $13,000 from UConn grant and Pell then you have $20,000
The remaining $8-10k (depending on meal plan and room) you can take a loan out for $5,500 and get a job in summer and work study during the school year.
Is your sister younger? If your parents have money saved to help you and your sister with $7,000 a year for college, you need to earn the rest and take out loans you pay back after you graduate.
I was just seeing if you could start at a local branch of Uconn or CC snd then transfer, the degree would still be from Uconn and you could save some money the first two years.
A Parent Plus has higher interest rate and is a loan your parents are obligated to pay.
You should exhaust direct student loans before taking out Parent Plus loans.
But you said your parents have $7000 saved so they don’t need to take out PP loan.
My sister is older currently attending college.
Ok, when is your sister graduating? If the EFC is with two in college then it will go up when she graduates.
will that matter with such a low efc?
EFC will about double when she graduates, which will reduce Pell, but you can also take out a bit higher loans sophomore year and junior/senior year. Just something to keep in mind, you should have a plan to pay for college costs all four years.