Stafford Loan and Parent Plus.

Paying for College
1

<p>Hi, my son recently got accepted to a school that costs $30K.
Off the bat they gave him a academic scholarship for $8K per year and we got approved for calgrant for $10K. He is most likely getting another scholarship he applied for with the school worth $7k. We will need to borrow the rest. We will be applying for the stafford loan. My husband and I have had some credit difficulty so if we do not get approved for the Parent Plus loan does he qualify for more subsidized if that's the case?</p>

<p>Thank you.</p>

<p>Sent from my T-Mobile G2 using CC App</p>

2

<p>No, but he can get additional UNsubsidized Stafford.</p>

3

<p>As a freshman the maximum Stafford a student can get is $5500 of which up to $3500 may be subsidized (depending on if there is need). If you (parents) apply for a PLUS loan and are denied, the student will be eligible for an additional $4000 in unsubsidized Stafford loans.</p>

4

<p>If a student takes out a student loan and then goes on to grad school or med school can he still defer the loan through out that time?</p>

5

<p>Thanks swimcat. I guess either way it should work out ok. I appreciate the input.</p>

<p>Sent from my T-Mobile G2 using CC App</p>

6

<p>Yes, student loans can be deferred during graduate school - however, interest will keep accruing.</p>

7

<p>Yes, please try to keep paying the interest. My son is finishing his first year of grad school, we both kept the interest payments paid although this year, he doesn’t always pay it in full. Paying when he could on the principle he paid about 2000 online over 5 years, not much but something.</p>

8

<p>What is the interest rate in general?</p>

9

<p>For Staffords unsubidizied is 6.8, this coming year subsidized are 3.4% and then back to 6.8 in 2012.</p>

10

<p>I believe subsidized loans currently remain subsidized while in grad school. That might change though.</p>

11

<p>Still pretty steep.</p>

12

<p>Well, lower than parents loans. The 3.4% this year is great though, both my daughters will take advantage of that.</p>