Loan Help

Paying for College
1

<p>I received both the Fed Perkins Loan and the Fed Subsidized Stafford Loan. From what I understand the Perkins loan has an interest rate of 5% and a grace period of nine months. While the Stafford Loan has 6.8% interest and six month grade period. So i'm guessing the Perkins Loan is better. Right? Or is there more to it than I understand?</p>

<p>Would taking out a loan and letting it sit in my bank account hurt my EFC when I file for the FAFSA next year? And when can I start paying off my loan?</p>

2

<p>Yes, the perkins loan is better. It will not raise your efc because you're told to exclude student loan money from the fafsa. You may be able to repay the loan before you leave college, but it doesn't really make sense to. These loans won't accrue interest while in college so you might as well at the very least throw any extra money into a savings account and keep it in case you need it.</p>