<p>I received a great FinAid package from my favourite college and am definitely planning to go there this August. I need to complete my Certificate of Finances, though, and as I was skimming through it I saw that I had to submit bank statements.</p>
<p>The question is: should my father (he's paying :3) have savings enough to cover up all four years of EFC in his bank? He only has enough for one year and some months -- he will be putting part of the money he earns from now on through his work into his bank account.</p>
<p>Also, I received a loan; do I have to pay it after 10 years (there was a little square saying: 10 years)? Will I be charged every year for the 6% interest rate or only after 10 years? </p>
<p>Your dad only needs to show one year of college costs.</p>
<p>The loan is for 10 years. You have to start paying on it shortly after you graduate…you make monthly payments over a 10 year period. The problem is that after you graduate, you won’t be earning much, so it can be hard to make those payments. </p>
<p>What kind of loan is this? Typically, you will be charged interest from the time the money is borrowed. So, it will immediately begin accruing interest. So, it’s best to borrow as little and as late as possible.</p>
<p>OK, that’s a relief. My father and I were worrying about it.</p>
<p>I don’t know about what type of loan it is, but I think the college is lending it to me and it’s not a federal one. I guess I’ll have to ask them for more information.</p>
<p>How do they calculate the interest? Do they sum 6% every year/month until I pay everything?</p>
<p>Thanks for the answers, Yurtle and mom2collegekids :)</p>
<p>You need to check with the school for the conditions of the loan. As you are and international student it will not be a federal loan.</p>
<p>Interest generally will start accruing from the day the loan is disbursed. How it is calculated (daily, monthly etc) will depend on the loan terms. Some loans may defer the interest payments and loan repayments until after graduation but the interest will still be adding to the loan. Some loans may require monthly repayment to start as soon as the loan is disbursed. You need to check with your school for the terms of your loan.</p>
<p>“I need to complete my Certificate of Finances, though, and as I was skimming through it I saw that I had to submit bank statements.”</p>
<p>It looks like you are an international student, in which case you would be ineligible for federal loans. The loan must be coming directly from the college itself. You should ask them how the interest is calculated, and what your repayment schedule is likely to be.</p>
<p>It is my understanding that you will need to show funds to support your studies for at least a year. Again, this is a question that you can ask the international admissions office at the college in question.</p>
<p>You also need to find out what the school considers “cost of attendance” that must be shown. You can’t just show tuition money. You have to show that all your expenses for the year will be covered. Health insurance many also be included.</p>
<p>I would ask the school what amount of money must be in the account(s) as of the day the form is signed/bank account statements issued. I think that the visa rules are pretty strict.</p>
<p>I’m pretty sure that US Visa rules require that you have a comprehensive insurance policy – usually acquired through the college, but possibly more expensive than the US student policy because the State Department requires much more extensive coverage for foreign students.</p>