Stafford, Perkins loans, Banks, Interest rates?!!! HELP!!!!!?
I got my award letter from the Uni. I applied to. I really just wanted grants,and scholarships but they gave me a Federal Sub. Stafford loan to,and my reaction was W.T.F.! I’ll looked everywhere to find out what I’m getting myself into if I accept the loan and to make a long story short it’s like I’m reading a foreign langauge. Someone Please explain to me in layman’s terms what are the pros and cons of a Stafford and Perkins loan,and out of these list of banks which lender is good.
AMS (A Sallie Mae Company)
BancorpSouth
Bank of America
Cadence Bank
Capital One Student Loans
Chase
Citibank
Citizens Bank of Philadelphia
Edamerica
Education Services Foundation
Sallie Mae Education Trust
Student Loan Xpress
The Student Loan People
Wells Fargo
The Stanford loan is for $5,500.00 although since I’ll transfering as a junior(went to a comm. college first and got a AA degree) I know I’m going to eventually need atlease 2 or 3 more semesters of loans.
OK, first off, somewhere you must have checked on your FASFA that you were interest in student loans or else there was a mix up somewhere. Usually, the Fin Aid office doesn’t just offer student loans; you have to ask for them. Secondly, just pick a bank. As stated before, you loan will likely be sold at least once before you finish paying for it. They all have to follow the same rules and regulations set down by the Fed Gov to provide Stafford Loans (Gov subsidized student loans). Thirdly, a sub loan means it will not accrue interest while you are in school or deferment. *Deferment is when you meet certain criteria to stop making payments temporary. Such as you go back to school or are unemployed.* As for accepting the loan, that is up to you. You can take the loan and use it to pay for any credits your grants don’t cover and buy books and send the rest back (you have 120 days to do this) with no penalties. Or you can open a high interest savings account and store the money in there while you are in school. If you need it, it’s there. If you don’t, well, you’ve just been given free money. The Gov is not charging you interest on the money, but it is earning somewhere around 3-4% while you are in school. When you are out, you take the money you borrowed and pay back a big part of your loan. Bottom line is, read everything they give you. What you don’t understand, ask about. If the Fin Aid office can’t give you an answer, call the lender. Talk to someone there, they are usually more up to date on the changes being handed down by the Gov anyway.
I Am CSLF