Loans

==Loans...everyone's favorite topic! There several different loans they include the Federal Subsidized Loan, Federal Unsubsidized Loan, Parent Plus Loan, Graduate Plus Loan, Private Education Loans (a.k.a. Alternative Loans) and your College of choice loans (usually short term). ==

Let's break these down even further...
1.Federal Subsidized Loan: Offered through the US Department of Education Direct Lending program is 0% interest rate while in school and at least half-time enrollment status. After you have graduated the interest rate is currently at 6.8% fixed through the life of the loan for graduate students and varies for undergraduate students with the highest being 6.8% fixed to the lowest 3.4% (in 2012) Please consult your college of choice and Master Promissory Note for additional details. The interest doesn't start accruing until 6 months after you have graduated. It is not due until 6 months after you have graduated or you have dropped below half time (6 credits undergraduate / 5 credits graduate). If you go back to school you can put your loan into a in-school deferment (please speak to your college for additional information) and your interest rate will go back to 0%.

2.Federal Unsubsidized Loan: Offered through the US Department of Education Direct Lending program is currently at 6.8% fixed interest rate through the life of the loan. The interest accrues quarterly. It is not due until 6 months after you have graduated or you have dropped below half time (6 credits undergraduate / 5 credits graduate). If you go back to school you can put your loan into a in-school deferment (please speak to your college for additional information).

3.Parent Plus Loan: Offered through the US Department of Education Direct Lending program is currently at 7.9% fixed interest rate through the life of your loan. This loan is based on your parent's credit score and if you need to you can have an endorser (co-signer) this loan will only go up to your remaining cost of attendance. If your parent is still unable to get the parent plus loan please contact your college of choice Financial Aid office to discuss your options which may include additional unsubsidized loans. It is due 60 days after the loan has fully disbursed. At this time your parent can can request an in-school deferment (please speak to your college for additional information) so that you don't have to start paying until you have graduated. It can't be transferred to the student.

4.Graduate Plus Loan: Offered through the US Department of Education Direct Lending program is currently at 7.9% fixed interest rate through the life of your loan. This loan is based on your credit score and if you need to you can have an endorser (co-signer) this loan will only go up to your remaining cost of attendance. It is due 60 days after the loan has fully disbursed. At this time you can request an in-school deferment (please speak to your college for additional information) so that you don't have to start paying until you have graduated.

5.Private Education Loans (a.k.a. Alternative Loans): You may choose any lender from any bank or credit union. A few things to keep in mind when looking for alternative loans...ask you lender if they use LIBOR (London Inter Bank Offered Rate) to come up with the percentage of interest or is it Prime + 1 (i.e. 6% + 1%= 7%) or is it fixed like the federal loans, Do they compound interest (meaning daily on top of weekly on top of monthly on top of yearly), Are there incentive programs for paying early/on time/etcetera. Get all the facts and make sure you understand what you are signing up for.

6.College: You will want to contact your college of choice for specifics on the programs they offer.

Loan Amount Break Down by Grade: 1.Freshmen- $3,500 Subsidized $2,000 Unsubsidized Total $5,500 ($4,000 additional in unsubsidized if considered independent) 2.Sophomores- $4,500 Subsidized $2,000 Unsubsidized Total $6,500 ($4,000 additional unsubsidized if considered independent) 3.Juniors and Seniors- $5,500 Subsidized $2,000 Unsubsidized Total $7,500 ($5,000 additional unsubsidized if considered independent) 4.Graduate Students- $8,500 Subsidized $12,000 Unsubsidized Total $20,500

A few things to keep in mind that you will need to know... 1. Complete your MPN at [] <span style="font-family: Georgia,serif; font-size: 130%;">2. Complete your Entrance Counseling at <span style="font-family: Georgia,serif;">[] <span style="font-family: Georgia,serif; font-size: 130%;">3. Utilize the National Student Loan Database System (NSLDS) to keep track of your loans at <span style="font-family: Georgia,serif;">[]

== == <span style="font-family: Georgia,serif;"> <span style="font-family: Georgia,serif; font-size: 130%;">﻿﻿Let's look at a couple of Financial Aid package Examples  ==

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