<p>Texas Tech no longer processes Stafford loans. The options are Direct Loans. We will only need $5,000 - $7,000 per year in loans. Would it be best for dd to take out an unsubsidized loan in her name or we take out a Parents Plus loan?</p>
<p>What do you all suggest?</p>
<p>Thanks so much,</p>
<p>Kay</p>
<p>OP,</p>
<p>Can you clarify your question.</p>
<p>Are you saying that the school does not process Direct Stafford loans, but processes Direct Plus loans? If this is correct, your daughter cannot get Direct Plus loans, only parents can.</p>
<p>Stafford Loans no longer exist - though everybody still uses that name today for what are technically called Direct Loans. The term Direct Loans also includes the PLUS loans.</p>
<p>Annasdad,</p>
<p>thanks for clarification. I always referred to them Stafford loans, but I knew the government web-site referred to them as Direct, so I started to refer to them as Stafford Direct. </p>
<p>In this case, it should be a family decision. If you go strictly by interest, then Direct loan is better than Direct Plus. On the other hand, if your daughter is a freshman than she can only borrow 5.5K, and if you need to borrow 7K, then you will need Direct Plus for the remainder 1.5K.</p>
<p>I also believe if your daughter goes to grad school, she can defer Direct Loans, but you cannot defer Direct Plus.</p>
<p>Direct student loans and Stafford loans are basically the same thing as far as terms, interest rates etc. Stafford loans were issued through private lenders while direct loans are direct through the school. Some schools opted not to do the direct loans until a couple of years ago when all schools were required to do direct loans and private Stafford loans were discontinued. People tend to call them Stafford loans still out of habit even though they are all direct loans now (I know I do)</p>
<p>The direct student loan limit for a dependent freshman is $5,500 for a freshman of which up to $3,500 may be subsidized if there is unmet financial need (as determined by the EFC, COA other scholarships and aid). Some schools do not automatically offer unsub loans to dependent students but instead offer the parent PLUS loans. But the student can opt for the unsub direct loan. Whether you have your child take out a direct loan in her name or you take out a PLUS loan in your own name is really a personal choice.</p>
<p>Thank you all for your responses. I’m torn between taking out the loan myself or having her take it out. I was curious what others did. We may only need $5.000.</p>
<p>Kay</p>
<p>Texas Tech does offer student loans - I just checked - you’ll see it listed under Federal Direct Student Loans in the Types of Aid category on the financial aid page of the school’s website. It is best to have your D borrow, IMO. The interest rate is decent, the payback terms are very good, and it is guaranteed. As a freshman, she can borrow up to $5500 for the year (of which up to $3500 may be subsidized, depending on her calculated need).</p>
<p>Kelsmom,</p>
<p>Thank you for the information. Our EFC is $19,000, I don’t think we can get a subsidized loan.</p>
<p>Kay</p>
<p>Kay, the 2012-13 cost of attendance is $23,326 ([Texas</a> Tech University :: Enrollment Management & Student Affairs :: Financial Aid :: Cost of Attendance](<a href=“http://www.depts.ttu.edu/financialaid/cost.asp]Texas”>http://www.depts.ttu.edu/financialaid/cost.asp)). If you have no other aid, your calculated need is $23,326-$19,000=$4,326. Freshmen can receive up to $3500 in sub loans, so your D will be able to borrow $3500 sub (assuming no other need based aid). She can also borrow $2000 unsub. Student’s unsub is better than parent’s PLUS, since the repayment terms are more lenient (there are many options for repayment) — and you can always repay them for her, if you want.</p>