<p>My D wants to go to a private college, and we're thinking about it. If she goes to private then we'll need a loan. I wonder if the loans are for everybody. We do not qualify for any need-based financial aid. The calculators indicate that we're able to pay for the full cost. So I wonder if loans are based on need or for anybody? thanks.</p>
<p>Your daughter will be eligible to borrow an unsubsidized Stafford loan (5500 freshman year, 6500 sophomore, junior/senior years). You will be eligible to borrow a parent PLUS loan in the amount of her Cost of Attendance (which includes tuition, room, board, fees, book expenses, personal expenses - set by the college & found on their website) less the unsubsidized loan amount less any other scholarships/grants/aid. </p>
<p>Unsub Stafford is currently 6.8% with interest beginning to accumulate at disbursement (1/2 of annual total is disbursed each semester). You may pay back the interest as it accumulates or capitalize it (thus owing interest on the interest). Repayment begins 6 months after a student graduates/leaves school/drops below half time. Deferment is available if the student continues on for grad/professional school (or another bachelors degree).</p>
<p>PLUS is currently 8.5%. Terms are similar to unsub terms, although the PLUS repayments begin 60 days after the loan is disbursed. Parents can request that repayment be deferred while the student is in school. </p>
<p>FAFSA is required for unsub loans, even though they are not based on need. PLUS does not technically require a FAFSA, but many schools ask that you file a FAFSA, anyway.</p>