<p>How is it different than a normal one you get at a bank?</p>
<p>My dad was wondering about this and although I assumed he knew what it was, he doesn't even know where to get one because we'll definitely need to pay some money out of our pockets for my university. Thanks for the help - and yes, I did try looking up FAQs and none of em have quite answered my Q.</p>
<p>Depending on your financial aid package, some student loans are federally subsidized. If your FA package shows a subsidized Stafford Loan, you will not pay interest on the loan until you graduate. If your FA shows an unsubsidized loan you will pay interest but generally you can start paying the principal and interest after you graduate.<br>
A normal loan from your bank will not have these options...however if your parents have home equity available and take a home equity loan any interest paid may be tax deductible. I am not a professional account or FA person..this is just my impression. There are lots of student loan companies out there...read the fine print carefully for each to determine the best rate and package for you.</p>
<p>Interest paid on Stafford Loans, whether still in school or at graduation, is also tax deductible. In regards to Stafford Loans, the interest rate is determined by the Federal Government and is the same...at least while a student is in school. The biggest difference between home equity loans and Stafford Loans is the long-term repayment plan. Generally, students can take 10+ years to repay their loans...and lenders offer income-sensitive repayment plans to aid students while they are getting on their feet after graduation. Stafford Loans can also be placed back into deferment should you decide to enter into a Graduate Program...Home equity lines cannot.</p>
<p>Currently, the interest rate on student Stafford Loans is 6.80%...but rumor from Congress is that it may be reduced to 3.40%....now keep in mind...this is just a rumor and has NOT been approved as of today.</p>
<p>Ok, so I get the offers after I get my FAFSA package?</p>
<p>Thing is, we put our salary as 250,000 a year, and probably won't get squat out of the FAFSA. So you still recieve Stafford stuff, right? I looked around online and their sites are really hard to understand. </p>
<p>If there are many student loan companies out there, how do you find them? Just online?</p>
<p>If your salary is $250000 then you will likely get an unsubsidized Stafford loan and I do not think at your income level the interest will be deductible. And the student cannot deduct it while he is your dependent. Once he graduates and is paying it back I believe it would be deductible then.</p>
<p>actually if ur EFC is greater than the cost of ur university u will get absolutely nothing, u have to take out private loans, u have to seek these out urself.</p>
<p>Please help me to understand the unsubsidized loans taken out by parents. The payments begin on those immediately? If you have to borrow the same amount each year, does the payment amount then double, triple, ect?</p>
<p>"actually if ur EFC is greater than the cost of ur university u will get absolutely nothing, u have to take out private loans, u have to seek these out urself"</p>
<p>bqwe04, I don't think that is correct. Our EFC was higher than cost of attendance and we received $3,500 in unsubsidized stafford loans.</p>
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Please help me to understand the unsubsidized loans taken out by parents. The payments begin on those immediately? If you have to borrow the same amount each year, does the payment amount then double, triple, ect?
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<p>check out <a href="http://www.federalstudentaid.ed.gov%5B/url%5D">www.federalstudentaid.ed.gov</a></p>
<p>Plus loans have no deferment period. Interest accrues immediately upon disbursement, and repayment begins within 60 days. Interest and principal. You may take up to between 10 to 25 years, depending on your repayment plan. Grad and professional students getting a Plus loan "may" get a deferment while still in school at least half time.</p>
<p>Do you understand loan repayment schedules? Get yourself educated.</p>
<p>RatedPG, you are correct there. We also received unsubsidized Stafford loans with the same situation. By the way, if you do receive the unsubsidized Staffords you can tell the FA office you are declining them if you choose not to take out those loans.<br>
The above poster is spot on. Get on the internet and read some of the nitty gritty about repayment schedules, interest, and the PLUS loans.</p>