<p>I have been told to take out a $5000 (year) subsidized stafford loan for my FA next year.
Now I could borrow that amount from relatives instead of getting the loan, but am I allowed to pay it off as a lump sum interest free before 6 months after graduation? I'd rather take the loan and get a job instead of having to borrow from relatives.</p>
<p>One more question, my parents have really bad credit, so will I still get the loan?</p>
<p>Yes, the stafford loans are awarded to you without consideration of your parents’ credit score. You won’t have to pay interest while enrolled in school with the subsidized stafford loans. My advice would be to take the subsidized loans and pay them off after graduation.</p>
<p>However, for freshamn year the subsidized loan is $3,500 and the additional $2,000 is unsubsidized. What I wonder - Are there separate fees for each loan and are they treated as two separate loans or clumped together?</p>
<p>The origination/guarantee fee is based on each loan…so the fee would be assessed on the Sub Loan based on the Sub amount and on the Unsub loan based on the Unsub portion. Typically, the origination/guarantee fee are the same regardless of whether the loan is Subsidized or Unsubsidized.</p>