<p>I have a quick question:</p>
<p>On my financial aid package, there is something called "unsubsidized loan 1." Am I correct in assuming this is the Federal Unsubsidized Stafford Loan outlined on the NYU website?</p>
<p>Yep, that should be it. You have info about the unsubsidized Stafford loan right?</p>
<p>[Undergraduate</a> Loan Questions - What’s the difference between unsubsidized and subsidized loans](<a href=“What is a Subsidized Student Loan? | Edvisors”>What is a Subsidized Student Loan? | Edvisors)</p>
<p>Alright then. Thank you for the quick response and thanks for the link. =] I’ve already gotten the gist of the loans but it never hurts to know more.</p>
<p>Dawnwatcher,</p>
<p>I went back to the NYU Financial Aid website and see they have a private loan section. I am fairly certain that unsubsidized means the Stafford and not a private loan.</p>
<p>However, maybe a student or parent can confirm that unsubsidized refers to the Stafford even when the Stafford is not named in the type of loan, as in your case.</p>
<p>I remember getting unsubsidized loan for my S last year and I think it did not say the Stafford. However, my memory is somewhat foggy a year later. So I have to amend my post above and say that the probability is yours is a Stafford loan. Though I am not 100% certain.</p>
<p>Alright, thank you once again. It appears that I probably won’t be taking the unsubsidized loan either way. The thought of having to either pay interest for four years or have my principal capitalize is a nightmare to me and my family.</p>
<p>Dawnwatcher,</p>
<p>I agree. We were also offered that option and I do not like it. If it is the Stafford, the interest rate may be more competitive for the unsubsidized compared to private loans. Though the federal govt. now reportedly has de-coupled from private banks (used to use them as a lending arm of the govt.) and the private banks are now trying to get into this niche market directly (without going through the federal govt.) Not sure if the banks will be offering better rates at least in the beginning.</p>
<p>However, I agree that it is best to avoid this type of loan (no matter the source) if you can help it since interest accrues immediately while you are still in school.</p>
<p>So is it “acceptable” to turn down an unsubsidized loan and try to find a home equity loan with a better rate? THe stafford unsubsidized is 6.8% which seems high.</p>
<p>Yes, You are not obligated to take any of the loans. They are offered as part of the FA package. In fact, you can refuse any part of it that you want, including grants and scholarships, though I would question the person’s sanity in doing so (if the plan is to attend NYU). :)</p>
<p>So then is would the Stafford Loan 1 be the subsidized loan? That means I won’t have to pay interest until after I graduate or become less than a full-time student right?</p>
<p>Would it be a good idea then to just take the $3500 offered now, then immediately pay it right back after I graduate so I don’t have to pay the interest? Is that allowed?</p>
<p>stafford loan = interest accumulates 6 or 9 months after you graduate iirc</p>
<p>yes that is allowed. thats the cheapest way to pay back the school anyways, paying back exactly what you borrowed. no less no more. take it of you dont have the money at hand to spare.</p>