pguard wrote:
if your unsubisidized portion is only $20,500, where do you go for the remainder of the funds?
Have any of the international students identified resourses for loans yet? All the schools say they're confident the loans will be available but I haven't seen any programs yet.
The way I understand it these are the loan options, in order of most to least attractive:
1. subsidized Stafford - subsidized (interest doesn't accrue until you graduate), low interest rate, max amount of $8,500
2. unsubsidized Stafford - unsubsidized, low interest rate, max amount of $20,500
3. federal Grad PLUS loans - higher interest rate, no maximum amount. See the following:
https://www.salliemae.com/get_student_lo ... grad_plus/4. Miscellaneous - some schools offer other funding options. For example, Kellogg allows you to apply for Northwestern student loans. I don't think everyone qualifies, but I don't know much about that though.
5. Outside sources - private lenders that you find on your own.
I don't think you have to start paying on any of these options until you graduate.
You don't have to start paying on the loans, but for some of them (unsubsidized Stafford) the 6.8% interest is accrued day 1 and is capitalized (added to your principal). My question is, can anyone get unsubsidized Stafford loans? regardless of savings?
"You might be able to borrow loan funds beyond your subsidized loan amount even if you don't have demonstrated financial need. In that case, you'd receive an unsubsidized loan. Your school will subtract the total amount of your other financial aid from your cost of attendance to determine whether you're eligible for an unsubsidized loan. Unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized loan is disbursed until it's paid in full. You can choose to pay the interest or allow it to accrue (accumulate) and be capitalized (that is, added to the principal amount of your loan). Capitalizing the interest will increase the amount you have to repay."