<p>This starts to worry me but for many students like myself...loans are not an option...without the loans we would be stuck at community colleges and could never get a 4 year degree...we just have to do whatever it takes...even if that means putting ourselves 20-25 thousand dollars in debt...</p>
<p>Just be smart about what you are doing IF you decide to use student loans - first off use federal education loan programs first - that would include the Stafford Student loan, Parent PLUS loan, a new one called GradPlus loans for graduate students and consolidation loan- these are all considered part of the federal program.</p>
<p>The Stafford loans have limits on how much you can borrower each year and then maximum for undergrad and graduate education. These loans also have options to use different kinds of deferments to delay or postpone your payments if you run into a jam or go back to school. </p>
<p>Don't use any private or alternative loan progams that are credit based unless you have researched them and know exactly what you are getting yourself into- these have higher interest rate and less forgiving repayment terms.</p>
<p>I thought if you received a subsidized Stafford loan you could not receive a unsibsidized stafford loan also.</p>
<p>No that is not necessarily true - the Financial Aid office always makes the call on how and what they will award but if your parent is rejected from a PLUS loan and you provide that reject notice to the school they can award you with a unsub stafford loan - but again - it is the schools call how they handle it.</p>
<p>I have two questions regarding LOANS.
1. Is it possible to get the PLUS LOAN when both parents are not approved?
2. What is the maximum amount that can be borrowed for the PLUS LOAN?</p>
<p>( In regards of question 1, my financial advisor told me if my parents were not approved I was eligible for the LOAN)</p>
<p>You answered my question and I didn't even read the whole post lol.
I am still a bit confused with how you should consolidate your LOANS; to be honest both of my parents are new to this and don't really do research. This post helped me a lot to just think ahead for myself rather than wait for my parents to tell me to do certain things.</p>
<p>PLUS loans are parent loans. If neither parent is approved, you will be eligible to borrow another $4000 as an unsubsidized stafford loan.</p>
<p>The maximum amount they will be able to borrow will be based on their credit worthiness ( but if they are not eligible, then this is a moot point).</p>
<p>This is what Financialaidlady wrote about consolidations</p>
<p>The rules on consolidating your loans changed in March and then more rules will change in July but here is the deal:</p>
<p>Prior to March 31st if you consolidated your loans AND your loans were with the Ford Direct program any private lender could take this loans over for you and add extra benefits, like discounting the interest rate or giving you cash back on your principal balance. So you could re-consolidate an exiting consolidation loan if you went thru the right steps.</p>
<p>If you consolidated your loans and then you go out and get more education loans you can refinance all of these together into a new consolidation loan - you can do that now and that won't be changing.</p>
<p>If you haven't consolidated and all your loans are with the same lender you have to go to that lender to give you a consolidation loan - now the only problem with that is there may be other lenders out there offering better deals but due to a Single Lender Rule set up by the feds you are locked in and can't shop around!</p>
<p>If you loans are all currently with the William D Ford program you can still shop around and have someone else take these loans over so you can take advantage of some of the new extra benefits being offered out there-</p>
<p>AES is but one of many, many choice of sites and lenders to check out - another option is <a href="http://www.studentlendingworks.org%5B/url%5D">www.studentlendingworks.org</a> - there are some great deals that can save you thousands of dollars on your loans but act right now before July 1st changes take place.</p>
<p>Back in the 70's I borrowed under the National Defense (later Direct) Student Loan program and was able to pay it back without too much pain in under 10 years. I recall the total amount borrowed was equivalent to the purchase price of a brand new Toyota Corolla. I think it holds true today - if you borrowed the maximum Stafford undergrad amount, you'd be in the high teens or low twenties - about what you could expect to pay for a brand new Corolla. Spreading the payment out over 10 years shouldn't be too burdensome. Students who are borrowing $60,000 or more are essentially buying 'sky condos' -the price of housing but with none of the livability and I would be very cautious about taking on that amount of debt. </p>
<p>As far as a new grad earning $100,000 their first year, NFL draft picks might be doing it, but then they probably aren't burdened with any student loans to worry about, either.</p>
<p>I want to be sure we answered the question about PLUS loans amounts - only one parent need apply for a given academic year for a parent PLUS loan- so they are only looking at one person's credit not both parents.</p>
<p>There is not limit on how much you can borrower for your PLUS other than what the school says you need. The amount of the PLUS loan is based on how much you owe the school and the financial aid office will determine what the max amount is - you can then borrower up to the max or any amount in between.</p>
<p>I do not disagree that coming out of college with too much student loan debt isn't what anyone wants - but if getting loans is the only way to secure your education then you need to use them but use them wisely.</p>
<p>For someone coming out of school now in debt for $20,000 the monthly payment on that loan will be about $200.00 per month with a 10 year repayment term and about $120.00 per month if they consolidated their loans and recd a 20 year term.</p>
<p>These loans are simple interest loans with no prepayment fees - so if you took out a loan - consolidated it and got the max repayment term - you min payment is $120.00 - if you sent in more than the 120.00 each month based on money you have available in your budget you can pay this loan off faster with less finance charges - you can establish credit - you can even earn some extra benefits the lender may offer on top of all of that - it really isn't such a bad deal IF and i repeat IF you need it!!</p>
<p>If I get the additional sub. loan, will I still have to consolidate? Or would you advise me to consolidate? Also, being a FRESHMAN when will be the best time to begin consolidating my LOANS?</p>
<p>I don't hear from a few scholarships until mid July till late August. But paperwork for my loans must be filled out and such. If I got any of these scholarships...is there a way that I can send a certain amount of principle back to the lender? I'm only taking federal loans btw. (Stafford, PLUS, Perkins)</p>
<p>Since you are only a freshman I would advise you do not consolidate until you graduate.</p>
<p>For PPRNOODLE - if you recd some scholarship AFTER you have accepted the loans - if the scholarships cause you account to be overpaid generally the financial aid office will credit money back to reduce your student loans. If you get more scholarship money give your school financial aid office a call to see how they will apply excess funds to be sure.</p>
<p>ahhhh, thanks a lot FinancialAidLady. I just called them, they said they'll either give the excess to the borrower (me or my parents, depending on which loan)....or back to the lender.</p>
<p>Thanks, I will then!</p>