<p>So...we have finally got all our ducks in a row and are about to pay the bill for DD. </p>
<p>She was given 3 student loans - and she accepted all three back in May - but will now, because we've been saving money and gathering donations from family members, she only needs one.</p>
<p>We have the forms to complete to decline the loans extended, and will for sure turn down the Direct Unsub Loan, but have a question about the Perkins vs. Sub loan.</p>
<p>Each is about the same amount ($4K vs $3500).
We understand there is longer grace period for the Perkins, higher interest rate (not by much - 5% vs 4.6%) and no orig fee. Hard to know if there is a reason she should pick one over the other?</p>
<p>You all were so helpful in that tumultuous "who will give her financial aid" time that I figured we'd ask. We need to get this squared away by tomorrow, and just want to give her the best advice we can.</p>
<p>Thanks! </p>
<p>:)</p>
<p>Many schools will require you to take the limit (subsidized and unsubsidized) in Stafford loans before they let you take Perkins loans. It’s because the Perkins money is a limited amount, given by the federal government to each college but controlled by the college so they want to hold onto it for other students.</p>
<p>Aha! Good to know. We will call the school right now…</p>
<p>Will the college ask why we don’t need the loans? Does that matter to them? They want to know about the “outside scholarships” (we assume the local ones thru the high school and our town)…we did raise money thru a giant yard sale and family donations - silly question, probably - but all they will need to know is that she doesn’t need all 3 loans, right?</p>
<p>
It was my experiences that they don’t ask.</p>
<p>Perkins vs Subsidised Loan:
If you declined Perkins Loans, I don’t think you can get it back. If you declined Sub. Direct Loans, I think you can get it reinstated within the academic year. Also
See <a href=“https://studentaid.ed.gov/repay-loans/understand/plans”>https://studentaid.ed.gov/repay-loans/understand/plans</a></p>
<p>
As long as the donations are not ten of thousands, I don’t think you need to report the money.</p>
<p>You could just keep both of them in case you need them later. Set them aside in a separate account. The interest is subsidized while in college. You would only be out the origination fee on the Stafford and nothing on the Perkins.</p>
<p>Take the Perkins. it’s limited and not as likely to be cumulative. If you take out your max in need based loans, you can still get the Direct Loans on an unsubsidized basis. If your student needs an extra year of college, by not using up the Direct Loan maximums, that will be available. You cannot count on the Perkins ever being offered up. It’s take it or leave it now.</p>
<p>My S took Perkins and sub Stafford and declined the unsub Stafford and his school was fine with it.</p>