My mom friend said that If I take out loans my interest rate will be low. Is this true? I’M GOING TO UNIVERSITY at ALBANY. NOT PENN STATE. People seem to think I’m going to Penn State not sure why. I didn’t get into my major but not rejected. I was giving another opportunity to change my major so they can evaluate my application again but I didn’t.
Taking loan will be for room and board.
If my parents take the loan, the interest rate will be higher.
I’m a Transfer Student
It all depends on what kind of loan you are talking about.
Are you already taking the Direct Loan? That’s $5500 for freshman year? If not…do that…as it’s in your name only.
The interest rate for parent loans will vary depending on the lender, and other factors too.
I’m considered a junior transfer. I’m not sure if I used the $5500 for sophomore and freshman
If you have junior status, you’ll be allowed to borrow $7500 per year.
Yes, the student’s rate on the Stafford loan is lower than the parent’s rate on the plus loan, and the origination fee is lower.
Your tuition will be paid through a program at the college where your dad works, right? That should leave a balance of ~$12k/year. The federal student loan is $7500/year. That leaves ~$6k/year. Can your parents pay that without borrowing? If not, you can probably raise $3k next summer to help make up the difference. I wouldn’t turn down the federal loan to get a more expensive private loan in your parents’ names. If they want to help pay your student loans off after you graduate they can do that without having their names on them.
@austinmshauri I think the student needs the money now…not next summer (although he WILL need it next summer as well for his fourth year).
Yes…student loan would be $7500. Did you have a summer job this year? How much do you have from that?
@thumper1, OP does need the money this year. I was just repeating info. we gave him in his “Is it too late for financial aid” thread in March. In that thread, we went over the FAFSA, available loans, NYS TAP application, summer work, etc.
Nasa2014, People might assume you’re attending Penn State because you keep bringing it. Did you file the FAFSA and TAP applications in March? If so, you should be able to accept the $7500 federal student loan in your SUNY Albany portal. If Colgate pays your tuition and fees (~$8-9k/year), your remaing direct costs should be ~$6k/year. Did you qualify for a TAP or Pell grant? If not, your parents will have to pay the balance or take out a loan to cover it.
I didn’t have a summer job this year because I was busy. I just came back from a vacation so that limited me to getting a job. I will try to find a job for next summer. I qualify for TAP not sure about pell grant.
I’m not sure if we already borrow money to pay the room and board. Someone said there are many types of loan borrow. Which one will be for me so the interest rate is low.
Almost always the student Stafford loan is the lowest rate/origination fee.
No need to guess, though. The FA office can tell you the rates on the loans they have included in your package.
If you are getting a pell grant, it will also be on your FA award portal.
Op is getting tuition remission from his Dad’s job. Dad’s benefits most likely ** will not ** cover anything for room and board because it is not a qualified educational expense. TAP only covers tuition. There is no double dipping. He still has to cover room and board