i dont understand how it works. all i know is, my dad got approved for a $20,000 loan. he will have to pay $800 a month. and i will have to pay him back. should i do this?
can someone explain the other aid to me please?
loans for college
by tsunami_rid3r 7 Replies latest jw friends
-
tsunami_rid3r
-
Es
hey there, Here in Australia we have things called hex fees where the student can pay off his college fees over many years. My partner has just finished paying his uni fees last year after completing uni bout 5 years ago. Do you guys have something like that? Maybe be better than borrowing money off folks especially if things are the best between you hope this helps es
-
Oroborus21
Tsunami, go to www.collegeboard.com
and and google college loans. Do a little research.
Most schools offer a financial aid package that includes a mix of the following:
1. Grants - money in various sums to be used for your education and that doesn't have to be repaid (the best!)
2. Federal Work Study - a sum of money that you basically "earn" by working. What it really is is a way of supplementing your wages for an employer. Many jobs on campus are work-study positions.
3. Scholarships - these are merit based or given out for some reason. they usually require an application. these are not repaid but getting them is harder and competition is fierce.
4. Loans - two types, subsidized and unsubsidized, which refers to the interest on the loan. subsidized the gov pays the interest and unsub you do.
Are you already accepted to college, have you not gotten any info from the financial aid office? I would contact the financial aid office of your intended college and visit their website for more info.
The loan you described seems kind of steep at a repayment of $800 a month. Also most educational loans do not enter repayment until after you leave school.
good luck,
Eduardo
-
JAVA
There are many ways to borrow money for college. As already suggested, doing a Google search is a good start. After doing that, go any accredited college and set up a meeting with someone in their financial aid department. They deal with this all day long, and can answer your questions. It's important to deal with an accredited college. Do a Google search about that, too.
My best to you! -
under74
Go to fafsa.org or even look up the colleges financial aid website to get more information.
It all depends on who the lender is. If it's through a bank the payments will be higher. If it's a private or federal PLUS loan rather than a federal Stafford loan the payments will be higher. $800 a month seems rather high but your father can get the payments lowered through different payment plans. And if you're not going to need ALL that money then you can get it lowered to the amount you need.
Also if you manage to get yourself declared an "independent" at some point you'll be able to take out the loans for yourself.
When I entered undergrad my mom had to take out a loan for me because I was under 24 and I didn't attempt to declare myself independent. The payments were in her name but I made them for her. They usually amounted to no more than $40-$70 a month and if I had problems I'd call the servicer/lender and tell them I was paying for it and they were really good about helping me get the problems taken care of ---like lowering payments and such.
under74 (up to her ears in all kinds of college loans) -
Euphemism
800 a month... is that a home refinance? I agree with Eduardo, that is incredibly steep. I had a total of about $10,000 in loans and I pay $135 a month; plus I didn't have to make any payments--even interest--until I finished college. Those were Federal Subsidized loans.
You should fill out a Federal Application for Student Aid (FAFSA) several months before you plan to start college. That will ensure your eligibility for various forms of Federal and State aid, which usually has the best terms. You can do that at http://www.fafsa.ed.gov/
And talk to your School Counselor. This sort of stuff is their bread and butter.
-
La Capra
We told you in an earlier thread
Where scholarships fall short, get financial aid (if you haven't completed the FAFSA yet, what are you waiting for), and where that falls short, borrow. You do not have to pay back student loans until you finish college.
There is lots of free money for college, and FAFSA (or your local state equivalent) is your first step. It is essentially an application for financial aid (grants and GSLs), which you and your parents must complete before you can get any federal (or state) aid.
Guaranteed Student Loans are loans you take out and you have to pay back. Repayment is deferred until you are out of school. But you are responsible for it.
It sounds like the loan your parents are thinking of is not one of these loans. In fact $20K with repayment at $800 a month sounds like a five year loan with a pretty steep interest rate. If your parents are willing to take responsibility, then you should accept it, but carefully consider the repayment terms they want. It may be unlikely you could live up to their expectations ($800 a month is A LOT) in the time frame they are expecting.
The nice thing about GSLs is that even after you graduate, if you can't make the payments, you can take a few courses at a local community college and extend deferment on the repayment. And the other nice thing is that you have no obligation (financial, or other strings) to your parents.
You really must go talk to your guidance counselor at your school about this. Park your rear outside her office door if necessary. The longer you wait, the less money there is (filing date for FAFSA opens on March 1 each year, I think).
Hope you like Top Ramen (that's how I made my student loans last, and got them paid off quick after college).
Good Luck, and get cracking.
Shoshana
-
under74
One more thing I forgot to add in my last post---don't stress too much about it. It seems like a really big step and resposibility taking out these loans for school but as soon as you get into college you'll realize it's not that scary.