<p>Can someone explain the student loan process to me? I need about $8000 to be able to go this fall, and I was awarded about 5500 in unsubstidised(sp?) stafford and subsitdised loans. As well as a parent plus loan for about $4900 which i don't think my mom will be able to get. Help?</p>
<p>Sorry for the spelling errors. :(</p>
<p>If your mom is turned down for the Plus loan, you’ll be eligible for an additional $4K in unsubsidized Stafford loans. Or maybe you could earn and save the $2500 extra you need this summer?</p>
<p>I, unfortenently, will not have a job this summer. I am hoping that a need based scholarship comes through though, but I won’t know until July. </p>
<p>Is this too much debt for a student?</p>
<p>I think $8,000 a year is quite a bit, but it isn’t overwhelming. If your total debt for 4 years is $32,000 (assuming no increased borrowing), your payment should be a bit less than $350/month for 10 years. Are you comfortable with that? Do try to work and cut corners when you can - buy books used/online, curtail entertainment expenses, etc. and try to pay at least the interest portion of your unsubsidized loans if you can every year so they don’t “snowball” on you. Perhaps your mom can plan to take a tax credit/dedcution like the Hope credit and use it to help you with expenses/interest.</p>
<p>Hope credit? Whats that?</p>
<p>Do I need to have a cosigner for the loans as well? My mom is hesitent about doings so because a friend of ours has two sons in college and he cosigned all of their loans and now cannot take out a loan. My mom seems to think she’ll be stuck in the same boat if she does cosign.</p>
<p>Anyone…?</p>
<p>Stafford loans don’t require a cosigner.</p>
<p>The Hope is a tax credit you can get for qualifying tuition and fees paid in the tax year. It is claimed on the tax return.</p>
<p>What is the process of applying for the loans?</p>
<p>Your school should have this information.</p>
<p>Some schools are direct lenders which means they loan you the money. Others are not which means you have to go to a bank. If the school is not a direct lender they should have a list of banks. You do not have to use the banks they list but it is a starting place. Compare the banks and their terms. Some will waive the origination fees up front. Others will promise to reduce interest rates in the future if you make so many on time payments. My choice is the bird in the hand - no origination fees no - rather than the promises for the future. Of course both is even better. </p>
<p>You will have to complete a master Promissory Note and a before loan counseling session (you read a bunch of stuff then do a quiz confirming you know you have to repay the loan etc etc). Print off the stuff for future reference. Your school should have all this information somewhere.</p>