<p>Can someone tell me when you need to start paying back this loan? Immediately or upon graduation. We only qualified for this financial aid. Thanks.</p>
<p>My understanding is that you pay after graduation, but the interest begins to accrue immediately. You can choose to pay that interest as you go or have it added to the principle balance at graduation time.</p>
<p>We wanted our son to take out student loans so he'd "have some skin in the game" as my husband likes to say, but he only qualified for unsub stafford and we don't like that interest situation, but eh, whatta ya gonna do.</p>
<p>Here's a link: Unsubsidized</a> stafford loan information at StaffordLoan.com</p>
<p>Yeah, I think you can wait to pay, but the interest is accruing while in school, then is "capitalized" ( i.e., added to the principal loan amount) so that you are paying interest on the interest. Nice.</p>
<p>For Stafford Loans there is a 6 month grace period after graduation before repayment begins (or if at any time you cease to be enrolled at least half time).</p>
<p>copter is right that interest begins to accrue immediately & that you can pay it as you go or have it added to the principle balance.</p>
<p>Just wanted to add that for unsubsidized Stafford loans, the interest continues to accrue even during the 6 month grace period.</p>
<p>unsubsidized Stafford 6.8% interest rate. You are responsible for interest from day 1. Can capitalize the interest. Repayment starts 6 months after graduating or dropping to less than 1/2 time.</p>
<p>subsidized Stafford 6% interest rate (will decrease over the next few years. Govt pays the interest till 6 months after graduating/dropping to less than 1/2 time - at which repayment also starts.</p>
<p>Student</a> Aid on the Web</p>
<p>For all Stafford loans first disbursed on or after July 1, 2006, the interest rate is fixed at 6.8 percent. This change from a variable to a fixed interest rate does not affect a borrower's variable interest rate on loans made before July 1, 2006.</p>
<p>the 6% rate is for stafford loans disbursed after July 1 2008</p>
<p>The rate for unsubsidized loans did not change from 6.8% - just for subsidized.</p>
<p>you are correct. I missed that, duh. I sure hope my son gets a subsidized stafford loan again for the next school year.</p>
<p>This sure is depressing! Do we have until May 1 to apply or can we apply after that? I saw that some lenders charge an origination fee and others don't. Can anyone recommend a lender that they were particularly happy with or is the origination fee the only thing that sets them apart?</p>
<p>D has an unsubsidized Stafford, because we felt she needed to have a stake in her education & unsubsidized was all we qualified for. However, we pay the interest quarterly to avoid her having to pay interest on interest.</p>
<p>You can apply for the loan now, but it isn't disbursed until the student actually pays (although I don't know how the 10 month payment plan thing works ... maybe first payment isn't due until July?). You'd get lower rate. </p>
<p>As for lenders, we use the state lender in D's school's state. There are plenty of good lenders. Look for no origination fee, rate breaks available following graduation, etc.</p>
<p>I keep getting letters from American Education Services to fill out a form called a Master promissory note. It is strange because it lists one of the schools that my son was accepted to on the paperwork, but he hasn't chosen to attend that school. </p>
<p>My question (and I do have one) is do I have to fill this out, or are they a lender or fee collector in disguise?</p>
<p>We had to fill out a MPN - but I think the school sent a note saying we had to do it. Her loans were done through the school though.</p>
<p>I think the govt site would be the place to sign the MPN. </p>
<p><a href="https://dlenote.ed.gov/empn/index.jsp%5B/url%5D">https://dlenote.ed.gov/empn/index.jsp</a></p>
<p>Copter,</p>
<p>You would need to contact the school at which your son is planning on attending. If they are a Direct Loan school, then the MPN can be signed at the government site swimcatsmom posted. If they are a FFELP school, then you would need to sign the MPN through their preferred method, which isn't typically directly through the lender or service, but through the guarantee agency they use. If you do the MPN through the wrong site, they will not receive the information they need to finalize the loan and you will be required to complete a new one, according to the schools standards.</p>
<p>Yay Nikkil. Good to hear from you. I guess you have been a bit busy with all that financial aid stuff.</p>
<p>All of my FA packages have included Stafford Loans. Can someone please tell me what the originators fee is? Thank you.</p>
<p>Lax,</p>
<p>The origination fee is going to vary based on the lender that you choose to use. Some lenders are still paying the origination fee. Others are paying a portion and some aren't paying any of it. You will need to check with the different lenders that are available and see which offers what....and that is changing almost daily!</p>