<p>Ok, we're down to figuring out if/how much we want to take out in loans. D has been offered $3000 Perkins and $3500 Subsidized Stafford loans. </p>
<p>I have some questions. First of all, can we choose to take less than the offered amount of these loans? For instance, $3000 Perkins and $1000 Stafford (just a random pick of #'s for now).</p>
<p>Secondly, what are the pros and (most importantly) cons of these loans. From what I've read, we do not pay interest on these while she is in school - correct? </p>
<p>Also, do we have some time to decide - when must the apps for these loans be in?</p>
<p>I'd really appreciate any comments on your understandings of these loans or experiences.</p>
<p>Our financial letter said we could pick and choose which part of the fin aid offer we wanted to accept. My understanding is that as long as she is a full time student there is no interest on subsidized loans. Some letters had loan paperwork with it, others said to sign the letter and paperwork would arrive in May.</p>
<p>The Perkins Loan is awarded to undergraduate and graduate students with exceptional financial need. This is a campus-based loan program, with the school acting as the lender using a limited pool of funds provided by the federal government. (The Perkins Loan is the best student loan available. It is a subsidized loan, with the interest being paid by the federal government during the in-school and 9-month grace periods. There are no origination or guarantee fees, and the interest rate is 5%. There is a 10-year repayment period.</p>
<p>All Stafford Loans are either subsidized (the government pays the interest while you're in school) or unsubsidized (you pay all the interest, although you can have the payments deferred until after graduation).</p>
<p>Starting on July 1, 2007, Stafford Loans allow dependent undergraduates to borrow up to $3,500 their freshman year (up from $2,625), $4,500 their sophomore year (up from $3,500) and $5,500 for each remaining year .</p>
<p>Students whose parents have been turned down for a PLUS loan can borrow an additional unsubsidized $4,000 the first two years and $5,000 the remaining years</p>
<p>The amount of Perkins Loan you receive is determined by your school's financial aid office. The program limits are $4,000 per year for undergraduate students and $6,000 per year for graduate students, with cumulative limits of $20,000 for undergraduate loans and $40,000 for undergraduate and graduate loans combined.</p>
<p>Thanks Sybbie!
So it sounds like Perkins is the one to go with if we are able to make do with just one loan...any other comments still appreciated...!</p>
<p>So how difficult are the loan apps? Is this FAFSFA all over again???? Does anyone know if there is a deadline for submitting for these for fall 2007?</p>
<p>the loans are driven by the FAFSA, so if you have already submitted the FAFSA (which sounds like you did based on your orginal post), you will not have to refile.</p>
<p>since your D has been offered both and you don't want to take both take the perkins but remember if you turn down the stafford you will have to make up that gap in funding.</p>
<p>I've never had the Perkins (yet), but for the Stafford you essentially go through loan counseling (which is reading a web site and taking a quiz), then you sign an MPN. There is no "app" as such (other than filling in name, address, number of credits you'll be taking, etc). REALLY simple and easy.</p>