Question!

[GatorsWearJorts]

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Incoming MS1 here...


The financial aid counselor at my school informed me that Ive been approved for the maximum financial aid. I wont see my award letter for a few days when we have a "workshop" on campus. Basically, between federal loans, loans from the school, and a very very small scholarship I am getting 60,000 a year.

I asked her if Id be deciding on lenders at the workshop, and she said no because all my loans are direct. Im not quite sure what that means... Also, I think a majority of my loans are federal- is this a good idea to take this, what is the interest rate?
Thanks a lot!

 

[edubbs5]

Yes - federal student loans are the best loan to take out at this time - even though the interest rate is currently 6.8% - especially going into the medical field - you are going to want to the benefits that student loans offer (i.e. grace periods, deferment, and lenient forbearances).

When your director says that you are will have all "direct loan" - that means they are a direct lending school - and work in conjuction with the Federal gvmt program that gives loan, though as a borrower you should be allowed to choose any lender you want. Ask to find out if that is the process - and how to go about it.

 

[okbye]

There's nothing wrong with Direct loans as long as you are planning to consolidate when you graduate - their repayment incentives are almost nil - but you should still have the choice. It's a federal law that you have the right to choose your lender and while I can't guarantee the federal government isn't exempt from their own law I can't see how they would be.

 

[mshheaddoc]

If you are approved for max loans of $60K, you are only eligible for max of staffords of $40,500 a year. The rest you should apply for PLUS loans which would be a better interest rate than private loans. I'm sure they will explain in your workshop. After your workshop if you still have questions, feel free to ask.