<p>So I'm going to be a senior next year and I'm starting to make the list of colleges I want to apply to. My family doesn't have a lot of money, so cost is a major issue. My mom and I did a practice fafsa, and it said we qualified for 2 subsidized loans and for work study because of financial need. So I just had a few questions. For subsidized loans, does that mean you don't have to pay interest? And can you start paying after you graduate? Is it a good idea to try to get by by only taking out these loans that I qualify for if I can? And for work study, that's just like getting a job on campus right? And do they pay you or does it just come off of your tutition? And do you get paid minimum wage, or does it depend on the college and your situation? Thanks for all the replies!!!!</p>
<p>For Subsidized loans the gov’t pays the interest while you are in school so there is no accumulated interest when you graduate and start having to pay it back. You will pay interest at that point. You should do your best to minimize all loans you take out. The other advantage of subsidized loans is they are at a fixed rate, under the rate of what is usually available. </p>
<p>Work study is work at school. Frequently you can arrange for that work to take place around your classes. They do pay you directly. I’m not sure about the rate.</p>
<p>The rate will vary but will be at least minimum wage. At my daughter’s school (a State U) the rates range from minimum wage to around $9.50 depending on the job. You have to apply for a WS job and WS earnings (number of hours worked times the hourly rate for the jobs) are paid to you in a paycheck (every 2 weeks at my daughters school). WS earnings are taxable for federal and state income tax purposes but you do not have to pay FICA on them. You will not have the money in hand at the beginning of the semester when tuition is due.</p>
<p>Thank you for your replies!!!</p>
<p>Income from work study jobs also does not count agaisnt next years income for FAFSA (I’m pretty certain). And your supervisor will know you are a student, and generally schedule accordingly. And you wont need a car. I think it generally offers better options than a non WS job.</p>
<p>If you do not have much summer income, you wont have much, if any income tax.</p>
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<p>I’m guessing this is from the Stafford and Perkins loan programs. If so, you should know now that not all schools will award you a Perkins loan. Some don’t participate and those that do generally have very limited funds. They award it according to their own FA policies.</p>
<p>^ok thank you for telling me that. I’ll have to look into that more.</p>