Subsidized Loans - please shed some light?

[lailanni]

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I was going through my fin aid report today (it just got processed).

I got the $8,500 in subsidized Staffords.

What other subsidized loans can I get? How do I apply/become eligible for them?

What's the max subsidized loans/year you can get?

Is the Health Professions loan subsidized?

Thanks for the help, my financially savvy friends. I have already called my FinAid office and with a 20 min hold time I was able to talk to 2 clueless people. Any help is appreciated! 🙂

 

[VAgirl]

I'm pretty sure the only subsidized loans out there are the $8,500 of sub staffords and the HPSL. Not all schools have HPSL and there are extra hoops to jump through for them. You needed to provide parental info on your FAFSA. Did you? If so, and your school has them, I think you would already have been awarded them if you qualified. If you didn't provide parental info, I don't know if you still can even do so for this year. All HPSL funds might be allocated to other folks. But worth asking for sure.

If you hear about any other sub loans other than these, please share the info, because I am unaware of them!

Edit: I seem to remeber the max for HPSL is $10K per year, but I could be wrong on that...I haven't looked into them much, as UCD doesn't have them anymore. 🙁

 

[NoleDevil]

I'm not sure if all vet schools award the same loans (probably the same federal ones), but here are the subsidized loans I'm getting after submitting my FAFSA:

- Federal Direct Stafford/Ford Loan
- Health Professions Loan

I also don't know if there's more options for subsidized loans through FAFSA. I know my bf got a subsidized loan back in undergrad through Wachovia Bank.

Of course, the bulk of my aid is being awarded through unsubsidized loans. 🙄

 

[LVT2DVM]

Not to pawn you off to another website, but these helped me out when I was trying to work out my loans for SMU. (of course that didnt work out but the info was very helpful)

http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp

http://www.teri.org/loan-center/loan-programs/health-professionals/health-professionals.asp

I interpreted this info as this. Based on your financial earnings, you are awarded Stafford Subsidized Loans. If you're a graduate or professional degree student, you can borrow up to $20,500 per academic year. No more than $8,500 of this amount may be in subsidized loans. Subsidized simply means that during the time your attending school or residency the government pays the accruing interest on your loan. Then when you graduate, you being paying the interest from that date. Unsubsidized loans accrue interest from day one. When you graduate, the accrued interest is added to the principle. Stafford just means the government which basically gives you loans based on need not your credit history.

The Health profession loans are not subsidized. This is a fancy name for a private bank loan that allows for increased loan amounts due to the cost of a health education. To qualify/obtain these loans you must apply through a private loan institution (bank or credit union). Usually your school will have a preferred lender that gives you a better interest rate, but you dont have to use them. Your credit history and/or you co-signers credit history will be used to determine whether you will qualify, what your borrowing limits will be and what the interest rates on the loan will be. Typically the limits are up to 65,000 per academic year with an aggregate limit of $120, 000 for veterinary professionals.

While everyone would love to finance their education with just subsidized loans, this just isnt feasible since the govt. cuts you off at 8,500 per year and then theres the aggregate limit of $65,500. Perhaps if you had some money saved it could be done. But if you have previous UG loans, chances would be slim. My best advice, keep your credit as clean as possible. Never know when you might need to use it. Hope this helps.