Hey, so how do student loans work? I am a senior in high school and i am planning on attending a UC in a year. My dad recently lost his job, but he made way too much money before, so i know that i cannot get any support from FAFSA. My grades are not the best so i doubt i could get any grants either. The UCs that i predict i can actually get into are far from my home so i would have to live there. With tuition and living expenses, i am predicting a yearly cost of 20+k. Do you take out loans through fafsa? And if so are you capped onto how much you can take out? I know that individually i can only take out 5k, but if i co sign with my parents? So if i am able to take out 20k+ in federal student loans, is it true that i do not have to pay back until i graduate? and does the interest not kick in until them? And how long do i have to pay the loans back? If the loans are capped, is there any other alternatives besides going to the bank? So i dont have crazy high interest and payments that i have to make while i am in school. And one more thing, is the federal student loans only applicable towards school? For example, i would need to take out loans for tuition and living expenses (that is not a dorm because those are to pricey). Any and all help would be greatly appreciated. Thank you
Start here:
Whoa.
If you want a Stafford loan (the $5500 one), yes, you need to file the FAFSA. If you qualify for a subsidized loan, the interest will be paid by the government during the time you are in school. No payments need to be made while you are in school, but interest will begin accruing upon disbursement (and at least $2000 will be unsubsidized, but maybe all will be).
Your parents can apply for a Plus loan for up to the cost of attendance (less any other loans, grants, or scholarships you get). You do not co-sign, your parents are the borrowers. This loan has a higher origination fee and a higher interest rate, and interest begins accruing immediate, but payments can be deferred while you are in school.
After that, banks or whatever other loans you can arrange.
The information hasn’t changed since your other thread. You can only borrow ~$5500 on your own. Unless your parents changed their minds about cosigning loans, and why would they if your dad just lost his job, you can’t borrow enough to pay for a UC. Do you have any affordable schools on your list?