Student Loan

I am a little confused on how the direct subsidized loans work. As far as what I understand, subsidized loans have no interests while I remain as an undergrad. So does that mean if I am taking out $3,500 direct subsidized loans per year, I’ll need to repay $14,000 as soon as I graduate? Will they be keep increasing if I wait a few more years to get a job and settle?

I also see that subsidized loan’s no-interest policy remains only for one school year. Does this mean I have to repay my $3,500 debt at the end of every school year or do I pay the whole amount after I graduate?

Also, I have an option to do the Federal Work-Study for $2,500 a year. Will I have an option to choose where/what I will work? I am afraid my school might give me some kind of floor cleaning job at the dining hall…
I would honestly love to not do the Federal Work-Study but my mom is worried that if we choose to opt out of it, we might get less financial aid in the future.

For the loans…you will,start repayment of the federally funded loans six months after you graduate from college. The whole amount for the full four years. If, at any time, you leave college…you will start repayment 6 months after you leave. Payments are typically spread over a 10 year period. If you borrow $14,000 over the four years, your pay,nets will be under $200 a month for ten years…or so.

In terms of work study…I’ve never heard of WS students doing cleaning of floors on the dining hall.

You will apply for work study jobs…just like you apply for any other job. Most colleges don’t “assign” jobs…you apply for them. I can’t think of any reason why you would NOT want to work at a work study job. It will,give you job experience of some kind, and a little income of your own.

@thumper1 Wow, under $200 a month for about ten years is really not bad at all

$200 a month in payments for 10 years on $14,000 is my estimate.

Hoping someone else chimes in.

@mommdc

Has anyone ever heard of a college giving less financial aid in future years when the student doesn’t do the work-study?

I am not sure exactly, but there should be repayment calculators where you can put amount and interest rate and it will calculate a payment for you.

But $200 sounds about right.

The subsidized loan amount might go up a bit after freshman year, depending on need.

The max is $3,500 freshman year, then $4,500 sophomore year, and $5,500 junior and senior year.

@privateID it’s just some rumor that my mom heard from local moms. They think that if you opt out of work-study, the fianacial aid office might think that you don’t need those money. I doubt it’s true but I do not want to risk it.

Work-study would be a wonderful experience if it were things like helping out your professor or carrying out a research, but it would be a horrible horrible experience if it were things like cleaning and passing out food at the dining hall or working as a cashier at the bookstore.

@biblee

Once more. Students are NOT hired as housekeeping staff in the dining halls or anywhere else. They aren’t. Why would you opt out of work study? Why? I can’t think of ONE reason why WS should be off the table.

I’m sorry, but you are sounding a bit “entitled” here. Some students DO work in the dining halls dishing out food, or whatever. Sorry, but that should not be beneath you to do. And that dining hall job just might provide you with a good work reference for one of the more desired professor or research related WS jobs. Think of that.

One of my kids worked in the school call center…which was not exactly a glamorous job…for one term. But then she applied for a job in undergrad admissions. She had a great LOR from her work supervisor at the call center that she feels helped her get that much better job.

You may find it hard to get a “better” work study job next year…if you don’t work someplace this year…and really…the dining hall might be your place this year.

Just to clarify. Subsidized loans do charge interest. However the government (actually the taxpayers) pay the interest for you until six months after you are no longer a student in a degree seeking program.

Work study varies by school. A lot of times the better jobs such as research will go to upper classmen since they have more experience. The type of jobs vary all over the place. Some are great and even fun. Some are not so great. I doubt any would be truly horrible. However, most have very flexible hours with bosses that understand the demands of students. I would not turn down work study. It can be a way to meet people and get some much needed spending money and work experience.

@thumper1 sorry I didn’t mean to sound spoiled. I am very thankful for the work-study opportunity as it is not something that everyone gets, but at the same time, I just don’t want it to be an unpleasant experience that I will always be stressed about during my college experience.

@biblee

I worked in the college dining hall…and I also,worked as an undergrad research assistant for a very prominent professor in my field.

I can assure you…I had FAR less stress in the dining hall. I went in, worked…and went home.

With the professor, I was charged with a lot of responsibility…and believe me…some of it was very stressful. I had work done both in and out of his office (think data entry) and I was always concerned I would make a small error.

Dishing out scrambled eggs was a LOT less stressful!

I worked for food service in college. I managed to edge into the marketing department. It was the best job ever! I folded and prepped table top marketing items for the department. I worked 10 hrs a week and I worked the hours whenever I wanted. The best part was for every 4 hrs I worked I got a free meal! When I loved off campus it was sooo nice to pick up a huge meal at one of the campus dining facilities. Seriously-- I was able to stretch that one meal to about four!

Biblee- there is no downside to work study. Some jobs on campus are only available to kids with work study. Freshman often get the worst jobs (because they have no skills or experience) which means that by sophomore year you are getting the better jobs and leaving the bad jobs to the new freshmen.

Whether it is unpleasant or not is entirely up to you and your attitude. My H worked in the dining hall all four years. By senior year he was in a management role but even when he was a Freshman clearing tables and restocking the napkins it was a great job. He is fantastic in the kitchen btw- a good life skill. When he had a bad shift he reminded himself that he was indoors, not in a coal mine or digging a ditch in Viet Nam (which young men who did not get educational deferments back in the 1970’s were doing once they were drafted). It’s all perspective.

If you do end up in food service, depending on your boss and the university’s policy, you may get to eat for free whenever you have a shift. So some kids are able to go from a big, expensive meal plan down to a less costly one because they are eating a couple of meals a week “on the house”.

Just see what’s available for work study jobs in the fall. Start with something, other opportunities can come up later.

And yes, working in the library or book store or cafeteria are not the worst jobs to have.

@carachel2 do most colleges let students work whenever they wish to? Or was your case a little special?

@biblee you apply for the WS jobs that are available at your college. Often these applications are done online. Then you usually interview with someone.

Some jobs have very specific work hours. Some are more “flexible”. It all depends on the type of job.

When my kid works at the call center, she had to choose at least one 3 hour shift per week. It could be ANY shift she wanted. But when shenworked for admissions, she had specific assigned work hours.

At D’s school, first year work study is always the dining venues. Because she had restaurant experience, she was placed in the café doing prep and Starbucks serving coffee. Others without experience dished out food, cleaned tables, that sort of thing. Work study is great in that they work around your academic schedule and you can generally chose how many hours each work (for D it was 5, 7, or 10/week).

@biblee --most assuredly it will be dependent on the department. My point was that you may fall into a great job that has some wonderful benefits. Stay open to the possibilities! I almost turned this gig down because it was for the food service department. I would’ve missed out on a LOT.

Students @ my school who work in the library always love it cause they can sit on their desk and do homework most of the time.