Loan Problem

<p>Hello. At some places Ive read that any tuition loans from UT Austin have to be repaid by the end of the semester and at some places Ive read that they can be repaid after you graduate and get a job and your salary can be used to pay back the loans in installments. Which is true in the case of stafford loans and parent plus loans?</p>

<p>There is a UT Tuition loan which you have to pay off by the end of the semester. Basically you pay at least 2 installments over the course of the semester with some interest tacked on. UT Tuition loans are provided by UT, but basically it's just another payment option. Instead of paying your tuition all at once, they let you spread it out. </p>

<p>Stafford and PLUS loans are Federal loans. </p>

<p>There are two types of Stafford Loans, subsidized and unsubsidized. With a subsidized loan, your interest is paid by the federal government as long as you are in school, so if you decide to go to grad school you wouldn't have to start making payments until you graduated grad school. Unsubsidized Staffords don't have the interest paid for by the Federal government, but you can just pay the interest while you're in school and don't have to start paying it off until you graduate. </p>

<p>PLUS loans are federal parent loans that your parents take out and are responsible for. They generally have lower rates of interest and such. I'm not too familiar with PLUS loans. </p>

<p>I hope that helps.</p>

<p>PLUS loans generally have a higher interest rate unfortunately compared to the Stafford loans. Last time I checked PLUS loans were around 8% versus Stafford's 6%ish interest rate =(</p>