Student loans Plans

[jymezg]

I thought I'd go ahead and through this in the Opt section to get current student replies:

Schools post tuition and living expenses costs online and if not you will surely get the information at acceptance. My question is if someone could post in their opinion the most responsible financial aid plan or just helpful tips in general!

With FAFSA, Sub/Unsubsidized Stafford loans, HPSL, and Perkins, in what order should these loans be taken out to be the least expensive in the long run?

( I didn't include work-study or scholarships because I was more interested in the total debt after graduation )

Thanks in advance!

---

Members don't see this ad.

 

[cunikki]

You should take out subsidized loans first- so sub stafford (8,500 right now), perkins (only like 2500 right now) and HPSL if you qualify (you need parental info for this one)... most students will need more than this to make it thru unless they can live off savings, live with family for free, etc... so try to decide exactly how much money you need to make it and take out the rest in unsubsidized stafford. one thing i think most people dont know is that you can take out less than the whole amount of that- or even the whole amount, and then bring your financial aid officer receipts if you need more money throughout the year- my roommate needed to get more money- so she brought plane tickets, car expenses, etc and got additional money.

in general i would just live the most frugally you can in school. this does not mean sitting at home while your friends go out, but it does mean dont go on huge shopping sprees ...every dollar you are taking out you will pay back doubled... so when you go shopping for new clothes, ask yourself if that outfit is really worth double what you are buying it for. i have a LOT of friends taking out the whole amount and spending it all- and i kinda wonder where it goes....
enjoy yourself in school and get to make friends and have fun... just remember that that is not a 4 dollar starbucks coffee... it is an 8 dollar cup of coffee

 

[JMU07]

Nikki is exactly right - get the subsidized loans first since they don't accrue interest during school and then get the absolute minimum amount of unsub loans you can since they accrue interest while you're in school. They send you a notice every semester telling you how much interest you owe and if you want you can pay it back while you're in school. Putting your parent's info on the FAFSA for the HPSL isn't a big deal, you are allowed to estimate their financial info so always err on the low side.

 

[eheaps]

Current students...any info on which lenders are the best in terms of the least amount of fees and best benefits??

 

[JMU07]

They recommend US Bank to the students at our school. There is a 1% origination fee (so if you want to take out a loan of $1000 they charge you $10 of it), although I know some lenders charge much more than that. Call the financial aid dept. at the school you're going to, they'll be able to give you some good advice!