Loans; accept or decline?

Paying for College
1

<p>I've been accepted at UNC as a transfer student, and will be starting there in the Fall. I'm an out of state student. I've been given a fairly decent aid offer from UNC.</p>

<p>Per Year:</p>

<p>Federal Perkins Loan - $2,800</p>

<p>Federal Direct Subsidized Loan - $3,500</p>

<p>Institutional Grant - $16,000</p>

<p>Total cost of attendance is around $40,000 per year, so my parents will be paying $24,000 per year roughly. I will be getting a paid internship to help them out.</p>

<p>Now, I don't absolutely need the loan, but this is what I was thinking..take the loans, but pay them back before interest is added on. Why? Well, this way, my parents would have to pay less up front right now, and we could just pay the loans off in full when I'm done school. Correct me if I'm wrong, but on the Federal Perkins Loan, the grace period is 9 months, meaning if I pay it off within the 9 months after I've finished at UNC, there will be no interest. And for the Federal Direct Subsidized Loan, the grace period is 6 months.</p>

<p>Any thoughts? Good idea? Bad idea?</p>

2

<p>It’s my understanding that there’s an origination fee for the loans . . . four percent, I believe. So they’re not “free.”</p>

3

<p>I actually just found that out after I created this thread, haha. :)</p>

4

<p>bumpbump 10char</p>

5

<p>This plan works for some families, but not for others. Sit down with your parents and a calculator, and test out all your options.</p>

6

<p>My understanding is that there are no origination or default fees for the Perkins loan.</p>

7

<p>@happymomof1 - Thank you</p>

<p>@sashmagal - Thanks! Any idea if there is an origination or default fee for Federal Direct Subsidized Loan?</p>

8

<p>Check out [Student</a> Aid on the Web](<a href=“http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp]Student”>http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp)</p>

<p>Scroll down a bit to get to the info on charges other than interest.</p>