Question about Loans in College!

Paying for College
1

<p>So I just have a quick question about how loans work.</p>

<p>So I want to attend a public institution out of state.
and I think i need money.</p>

<p>So I've heard that you are only allowed to borrow 5000 dollars your freshmen year.
-Is this loans from government? where there is no interest?</p>

<p>Second question is if you still need more money, your parents will have to borrow right? and they will be from where? government? private companies? bank? there will be a high interest in this as well?</p>

<p>Last question. How does paying back these loans work? like after you graduate do you have to pay them all back immediately?</p>

2

<p>First of all, you should not borrow a LOT for undergrad. That is a bad idea and too risky.</p>

<p>You can only borrow $5500 for frosh year. There are no interest-free loans. However, if you have “need” then some of that $5500 will have the interest subsidized while you’re in college, the rest will not be subsidized.</p>

<p>If you need more money, your parents could take out a Parent Plus loan from the federal govt or a private bank. Most parents won’t do this…</p>

<p>How much will your parents pay for college each year?</p>

<p>Who would be responsible to pay back that Parent Plus loan?</p>

<p>How much were thinking of borrowing each year?</p>

<p>What is your major and career goal?</p>

<p>Why do you want to go OOS.</p>

<p>Is your family low income?</p>

3

<p><<<<
I have around a 3.7 GPA weighted on 4 scale.
I have 1910 SAT super score.</p>

<br>

<br>

<p>What is your M+CR score? What is your M+CR score from your BEST sitting?</p>

<p>What schools are you considering?</p>

<br>

<br>

<p>So the question is if appyling ED is going to do anything for a student like me. Or should I wait for regular decision with SAT II results. right now I don’t have any subject test so I’m going to apply to the life sciences college. Additionally if I were to apply early decision I would have to blindly send in my SAT score before I can see them. I’m taking it in October. So…on a very tight schedule. Thanks for reading<<<<</p>

<p>??? </p>

<p>What is your REAL GPA? In one thread you say 3.7 WEIGHTED…and in another you say 4.0 UNWEIGHTED. </p>

<p>Looks like you have a 1330 M+CR superscore. What is it w/o superscoring?</p>

4

<p>Aimless. Your parents would need to cosign those huge loans…or take them out themselves. You would not be able to do so.</p>

<p>OOS public universities are usually exoensive, some in the $50,000 a year range.</p>

<p>Are you saying there are NO instate, affordable public universities in your state. You know…the grass isn’t necessarily greener at another stat’s public universities…but the costs would be double almost.</p>

5

<p>

Yes you will borrow from the Federal government. Federal government may subsidize the interest on $3500 out of $5500 max loan amount. See <a href=“http://www.direct.ed.gov/applying.html[quote]Second”>http://www.direct.ed.gov/applying.html

Parent Direct PLUS Loans. See <a href=“http://www.direct.ed.gov/parent.html[quote]Last”>http://www.direct.ed.gov/parent.html

See <a href=“http://www.direct.ed.gov/inrepayment.html”>http://www.direct.ed.gov/inrepayment.html&lt;/a&gt;&lt;/p&gt;

<p>Like other have posted, you and your family do not want to borrow the full amount of your college education, see <a href=“http://www.finaid.org/calculators/howmuchtoborrow.phtml”>http://www.finaid.org/calculators/howmuchtoborrow.phtml&lt;/a&gt;; also see Families Borrow Less for College, <a href=“http://online.wsj.com/articles/families-borrow-less-for-college-1406779205”>http://online.wsj.com/articles/families-borrow-less-for-college-1406779205&lt;/a&gt;&lt;/p&gt;

6

<p>Ight so from what I see. Going out of state is out of question.</p>

7

<p>Unless you are a tippy top student who might get a huge chunk of merit aid…OOS publics are going to cost a lot. </p>

8

<p>Parents have to have a strong income to be able to co-sign loans. And each year, the parents have to re-qualify…and that becomes more difficult because the previous-year’s loans hurt their credit. </p>

<p>Depending on your final scores, there may be some OOS schools that will either give you merit or need-based aid. </p>

<p>Have your parents run the NPC for an OOS public and see what the results are. If you can, copy/paste the results here. </p>

9

<p>Just to clarify, no interest accumulates on a subsidized loan while a student is in school, but it does for an unsubsidized one? Can a student (or their parents) make interest payments on the unsubsidized loans while the student is in school or will that adversely affect future aid?</p>

10

<p>Austin, yes the subsidized loan does not accrue any interest while the student is enrolled at least half-time, and the unsubsidized loan does. You can make interest payments on the unsubsidized loan while in school without it adversely affecting future aid. </p>