DoraBora Posted July 15, 2020 Share Posted July 15, 2020 DD will graduate next month and immediately begin graduate school. Dh and I are paying for room and board, but we wanted her to figure out student loans to pay tuition/fees/books, which we told her about a year ago. (We hope to be able to help her pay off any loans she takes out, but we can't front the money right now.) She has not pursued her options very well, which is frustrating. She only filled out her FAFSA a couple of weeks ago after some prodding from me. Anyway, her school is offering Unsubsidized Stafford Loans and I don't really understand how they work. They will release enough money to pay her fall tuition and fees, and what's left over should be enough to pay for textbooks and a parking pass. I'm trying to learn about these loans because I want to guide her if she continues to struggle. Does anyone know how repayment works for an unsubsidized Stafford loan? I can't plug numbers into an online calculator because I don't know the term of the loan. I have suggested that she email the financial aid office and ask about repayment and how interest accrues, etc., but I'd love to hear anything you've learned that you're willing to share. Quote Link to comment Share on other sites More sharing options...
elegantlion Posted July 16, 2020 Share Posted July 16, 2020 Unsubsidized loans begin incurring interest upon disbursement, even though no payment is due until she is out of school or drops below 1/2 time enrollement. I don't know what the interest rate will be this year, but graduate interest rates are always higher than undergraduate. I would suggest you look through this site for information on how those loans work. https://studentaid.gov/ 1 Quote Link to comment Share on other sites More sharing options...
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