<p>My financial aid package includes Stafford loans, however it doesn't say if it is directly lent from the government or if I have to go through a bank. How do you find out? My college also doesn't have a list of preferred lenders or anything on their website. What bank is decent for borrowing Stafford/private loans and can process my application fast?</p>
<p>Also, is it better to reject the unsubsidized Stafford loans (I was offered $2000)? Are there better private loans out there? I am concerned with the fact that you have to pay the interest while you are in school. How much will that be? I will be working part-time but most of my paycheck will go to my mother (like it always does...) to pay the rent/food bills.</p>
<p>I think that my EFC came out too high because my mother worked 3 jobs during 2007. However, she ended that a while ago and only works at her main job now. Unfortunately, the income from her main job and 2 other jobs are reflected in the FAFSA and seem to skew our financial circumstance. Should I write to my financial aid office about this or would they not even consider it? I have already emailed asking them to review my package again but they haven't replied. And I have 10 days left until the bill must be paid. :(</p>
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My financial aid package includes Stafford loans, however it doesn't say if it is directly lent from the government or if I have to go through a bank. How do you find out? My college also doesn't have a list of preferred lenders or anything on their website. What bank is decent for borrowing Stafford/private loans and can process my application fast?
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Contact your school ASAP. Schools vary. My daughter's school is a direct lender. They lend her the Stafford loan - all she had to do was complete the MPN (master promissory note). My son's school is not a direct lender. he has to apply for his loan either through one of the preferred lenders on a list the school sent him. You need to contact your school and ask them what to do.</p>
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Also, is it better to reject the unsubsidized Stafford loans (I was offered $2000)? Are there better private loans out there? I am concerned with the fact that you have to pay the interest while you are in school. How much will that be? I will be working part-time but most of my paycheck will go to my mother (like it always does...) to pay the rent/food bills.
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If you need the money do not reject it before you find out if you can find a better loan. It is likely you will not find a better interest rate. The interest can be deferred until the loan is due for repayment but this means the interest is added to the loan making the debt higher by the time you start to repay it. Annual interest on a $2000 loan at 6.8% will be @ $136</p>
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I think that my EFC came out too high because my mother worked 3 jobs during 2007. However, she ended that a while ago and only works at her main job now. Unfortunately, the income from her main job and 2 other jobs are reflected in the FAFSA and seem to skew our financial circumstance. Should I write to my financial aid office about this or would they not even consider it?
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If your mother's income will be considerably lower than in 2007 you can ask for a special circumstances adjustment. You will have to provide documentation proving the loss of income. It is up to the financial aid officers discretion whether he makes an adjustment. </p>
<p>Call your financial aid office ASAP and talk to them. We have found that financial aid people very much want to help students as far as they are able. Call them tomorrow or, better still, if you are close to campus go and see them.</p>
<p>Thanks for your help! I call the financial aid office, but it is impossible getting in touch with them at this busy time. I will try calling them tomorrow earlier. From what I can tell from the financial aid website, I will have to choose a lender for the Stafford loans. The bill is due on the 15th. How fast can a loan be processed?</p>
<p>I have already emailed them about reviewing my financial aid packet 3 times, and I still haven't gotten anything back...</p>
<p>Keep insisting and instead of e-mailing try to call the financial aid office. I had a similar problem adjusting my EFC for my D and when I finally got in touch with an advisor, I was told that all the information was in the computer (corrected), but that they would not send notifications with the new totals. In regards to accepting the unsub - you should first apply for the private loans and see if the interest rate is lower than what the Stafford is offering. Since your tuition is due on the 15th, try and see if your school allows you to extend the due date. My D's school extended this date and gave me 2 extra weeks.</p>
<p>Private or alternative loans usually have variable interest rates. What may seem like a great deal now, may not be so great once you graduate. The current Stafford loan rate is 6.0% for subsidized loans disbursed after July 2008. The Stafford unsub loan rate right now is 6.8%. </p>
<p>Most financial aid advisors and books about FA say that the Stafford (whether subsidized or unsubsidized) is the better and safer loan option for most students. Students also need to co-sign a private loan, which means mom or dad need to sign for this with the student (or another credit worthy borrower.) Private loan lenders fill a need - and while they offer a great service for those who need it, they are also making money on these loans. Buyer beware! </p>
<p>Stafford loans do not need a co-signer. </p>
<p>Depending upon the major and future career choice, some loans may be forgiven. While you cannot count on that to solve future financial budget, it is worth considering.</p>
<p>Thanks for your help everyone! I guess I need to find a private lender and fast. What lenders are most students satisfied with and offer decent benefits?</p>