Need Help Interpreting My Package...

Paying for College
1

<p>Okay, my parents are incompetent with financial aid, as am I, so I would appreciate any help. First off, I got about 1.1k in grants (WOOT!!!!!!!), then I got about 2k in Fed Subsidized Loans, and 1.5k in Fed Unsubsidized Loans, and 1.8k in Work-Study.</p>

<p>Now, my parents probably won't be able to pay 46k a year, so are we going to be able to get the full amounts of Subsidized and Unsubsidized Loans? Also, can I replace the Work Study with a higher Fed Loan? Also, can I take out any other loans to help supplement paying? Thanks.</p>

2

<p>Also, what exactly is the difference between Subsidized and Unsubsidized Loans? I looked it up, but am still a bit confused. My dad was not sure how we qualified for Subsidized…</p>

3

<p>I think thats the highst your going to get in student loans. You can’t replace work study. And yes you can take out other loans.</p>

4

<p>Both loans are given regardless of financial standing if you applyed for the fafsa.</p>

5

<p>Subsidized loans are need based. The government pays the interest until you graduate or drop below half time plus a grace period of 6 months. The interest rate for subsidized Stafford loans for the 2009-2010 school year is 5.6%. </p>

<p>Un subsidized Stafford loans are not need based. You are responsible for the interest from the day the loan is disbursed. The interest rate is 6.8%.</p>

<p>The maximum Stafford loan a freshman student can get is $5500. Of that up to a maximum of $3500 can be subsidized if there is ‘need’. </p>

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<p>Actually you can replace work study with subsidized loans as long as you have not maximized your subsidized loan eligibility. My daughter did this her freshman year. Ask your school. As you already have $2000 in subsidized loans you would not be able to replace more than $1500 of the WS with subsidized loans as this would take you to the maximum in unsubsidized loans.</p>

<p>Your parents are also eligible for PLUS loans which are parent loans. However the interest rates are very high (8.5%) so if they have some other options with better interest rates tht may be better.</p>

6

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<p>This makes me ask whether your parents ARE able to pay. I don’t want to know how much, but please reassure me that you are not expecting them to take out $46K in loans for your first year of college!</p>