<p>I wrote the OP and I guess my main question was how late do merit scholarships come in…when can we assume all the “cards ($$)” has been offered for his freshman year so we can know what we are facing financially? He’s accepted, he committed, the housing is set and all deposits are paid (all of this has been done with another college with almost a full ride waiting to hear from him because I want to make SURE that he is SURE before he turns their offer down). I’d say he’s 99.99% if not 100% sure he’s made up his mind. Now it comes down to paying. He says he doesn’t want a “subsidized” loan, but I’m not really sure what that is. We are in the dark about the best kind of loan. We could probably struggle and pay what he doesn’t get in merit and guaranteed offers out of out pockets, but I feel that he will work harder if there is something on the line for him to keep the grades up.</p>
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But subsidized loans are the best kind. A subsidized loan means the government pays the interest while he is in college and for a grace period after that. There are 2 types of subsidized loans. The Perkins loan which has a 5% interest rate, no origination fee and the govt pays the interest until he finishes school or drops below 1/2 time + for a 9 month grace period. The subsidized Stafford (there are also unsubsidized Staffords) which may have origination fees depending on the lender, the interest rate for 2009-2010 loans is 5.4%, and the grace period is 6 months. Subsidized loans are need based so there must be ‘need’. If he is offered subsidized loans then he should take them. They are interest free money for 4 years. And I agree he should have some financial ‘skin in the game’.</p>
<p>^^^ Thanks Laf…I was not specifically asking about Ivies, I know they are only need-based or bring in your own outside scholly/loan situations for most. I was more interested in understanding merit awards at public Ivies/top tier other schools which do have merit aid. Thanks for all advice!</p>
<p>swimcat…I just picked the paper up again, and it is UNsubsidized…I don’t know where the figure is coming from but it is the same on both colleges that have sent him any type of financial expectations. He only applied to two colleges and got accepted at both. He didn’t finish all the paperwork to Vanderbilt because that was mostly my idea, but there were all indications that they were very interested. He pretty much had his mind made up before the applications started and once his #1 accepted him, #2 fell way behind even though he did interview and they offered 80%. </p>
<p>I’ll have to study the unsubsidized aspects. With S1, loans didn’t come into play. He got full tuition, but he went to a much smaller school.</p>