<p>Do Stafford loans have to be taken out per semester or can they be taken for the second term only in the full amount? I've taken out PLUS for the second term only after paying all I can for the year first term, but that would have been doable regardless of rules because I was never close to the limits for the term. With the $5500 Stafford limit for a Freshman, for example, would he have to take $2750 for each semester, or could the first semester be paid in full and he then take the $5500 for the second term?</p>
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<p>There are some rules regarding the disbursement of Stafford loans. They have to be awarded in two parts…typically during each semester. </p>
<p>I guess my question…why wouldn’t you just take the loan half for each semester and then parcel out YOUR payment over the two terms?</p>
<p>Last year I helped a student during spring semester. </p>
<p>He submitted his FAFSA during April of the CURRENT school year. He was awarded the full amount (7500) because his “unmet need” and his EFC were 7500 or higher.</p>
<p>So, he got one big check from his school.</p>
<p>It’s not a big deal, for the amounts, but for PLUS, I can defer the interest till second semester. Also, my son one year came close to taking out a Stafford as a whole lot of increases and expenses cropped up first term, but he managed to squeeze by and within weeks after the school year began, he got a very nice job making the loan unnecessary. He made enough so that for the second term, he easily could make his payment, and didn’t have to borrow anything that year. But if he had not gotten the job, he would have needed some money second term but not first. If half the Stafford were all he needed, well and good but if he needed the full amount, he would be out of luck in terms of getting the amount for the first semester. But for some kids, taking it out unneeded means temptation to use it as it is available money.</p>
<p>I may tell him to go on ahead and borrow as he might want the money to do something in the summer and can stash it. It’s about all he can get in terms of loans in his name. It’s his last year and he is loan free as of now, but it’s going to be tight for us with two in college.</p>
<p>Ah, momof2collegekids, that’s what I wanted to know. But need doesn’t play a role in unsubStafford’s so it much have been COA not unmet need.</p>
<p>If Senior son takes out $7500 in January, he does not have any interest accrual until February and the calculation will be a simple one. $7500 borrowed in January of 2012. Otherwise, he’ll have two amounts have interest accruing when he doesn’t need the money starting in August of 2011. </p>
<p>I’ll pay what I can for both kids in August which will probably be the full load, but may end up short for second term and borrow from PLUS if that happens, with just one lump amount with that 7% interest starting to accrue in February. At that time one of my old PLUS loans will be paid off from my first kid. With some luck (laughter here) maybe I won’t have to take out a loan at all.</p>