<p>I am having trouble picking a loan lender, I don't know what's the difference between them. Can anyone recommend me which one to pick? There are like wells fargo/ bank of america, US bank, all student loan, chase, sallie mae. I am also wondering for all any of these banks, if I repay everything before the 6months after graduations, I won't have to pay any interest at all right? Thanks!</p>
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<p>Except for subsidized loans, interest will start accruing when the loan is disbursed.</p>
<p>I would suggest looking at what each banks loan conditions are and picking the best one. Some will waive the origination fees and some will not. An origination fee means that a fee is deducted before they disburse the loan to you - for instance if the loan is $1,000 and the origination fee is 1% then you will actually receive $990. All federal loans have the same interest rates , for Stafford it is 6.8% for unsubsidized and 5.6% this year for subsidized loans. Some banks will promise to reduce the interest rate after a certain number of on time payments. My personal preference is to go for the bird in the hand - that is the no origination fees up front.</p>
<p>If your loans are subsidized the government pays the interest until the end of the grace period (6 months after you graduate or drop below 1/2 time). If you pay a subsidized loan off before the end of the grace period you will owe no interest as it has been paid for you. If you do not pay it off before the end of the grace period you will owe the interest starting when the grace period ends - any interest before that has been paid for you by the govt.</p>
<p>If your loans are unsubsidized then you are responsible for the interest from the day the loan is disbursed. If you defer the interest you are still responsible for paying it. To you pay an unsubsidized loan off before the end of the grace period you will have to pay the initial loan and all the interest that has accrued to that date.</p>
<p>Are you currently a student at a college? If so, contact your financial aid office. They’re supposed to have what’s called a Preferred Lender List, which lists different lenders and explains the differences between them and what benefits each lender is offering.</p>
<p>If you have a Subsidized Stafford Loan, and you pay it off in full before the 6-month grace period expires, you won’t owe any interest. If you have an Unsubsidized Stafford Loan, and you choose to make monthly interest payments while you’re in college, and then you pay off the principal (the amount you originally borrowed) before the 6-month grace period expires, you won’t owe any interest because you have already been paying the interest every month.</p>