Taking full advantage of the subsidized Federal Stafford loan

Parents Forum
1

<p>Got DS's FA package which includes full Federal Perkins and Eligibility of up to $4500 subsidized Federal Stafford loan. </p>

<p>However, the school only recommends him taking on $2700 out of the $4500. Beside WS, they want him to work some other job to make up student contribution.</p>

<p>My research says the interest rate is only 3.4% for 2011 - 2012 year and it will be going to 6.8% for 2012 - 2013. </p>

<p>Wouldn't it be wise to take more of the low interest one this year? This could save the work earnings for next year's expenses to reduce the borrowing next year?</p>

<p>Did I miss anything? Why would the school recommend a lower the eligibility amount?</p>

2

<p>Will your daughter be out of undergrad next year? If so, it’s possible the expected contribution for your son will go up (assuming all else remains the "same.) Maybe they’ve considered that you may need to take more loans next year…so are suggesting less loans this year???</p>

<p>You could certainly ask the FA office…</p>

3

<p>I would certainly talk to them. It seems to make sense to use the full Sub Stanford.</p>

4

<p>2boysima, we fully anticipate we will be paying a lot more next year when DD finished her UG. The way I explain to DW is: Let’s say our EFC is $100. In theory, we should be paying $50 a piece to their schools. However, DS’s school is asking for 60%, or $60. DD’s school, on the other hand, is only asking for $20 instead of $50. So, net net, we are paying $80 instead of $100.</p>

<p>Next year, we will be asked to pay $100 from DS’s school. More loan is definitely one of the means to make the ends meet.</p>