Student Loans?

KyleWPeterson

Can anyone here point me to a website that explains how loans work and whatnot? I start Master's next fall and will need to take one out.

ASimPerson

This may be a decent starting point: http://studentaid.ed.gov/PORTALSWebApp/students/english/gradstudent.jsp

At least for undergrads, though, there are generally two types of student loans. Subsidized student loans mean some outside entity (usually the government) pays interest on the loans. Which means that if you take out $1000 you'll pay back $1000. Generally, you must have a need for this type of loan. Unsubsidized is the opposite.

For both types, you must start paying after you receive your degree, generally in monthly installments like any other loan.

Hypatia

Try the Direct Loan government loan site thingy? It's located here and has info about Stafford and PLUS loans.

Moses555

To clarify the subsidized/unsubsidized thing:

The government pays the interest on subsidized loans while you are in school, but you do have to pay interest after finishing school. This is the best option, but not always available.

An unsubsidized loan accrues interest while you are in school, so that a $1000 loan when you start school, is a $1100 debt when you graduate.

Interest rates are relatively good these days, so you may want to try to get a loan with a fixed rate.

A Bear

Im in a similar boat as the OP--I've been green lighted for both a subsidized and unsubsidized amount of Stafford loans, my school says that:

You are not allowed to include a loan amount on the application for the Stafford loans. If you do not want the full amount, please email XXXXXXX@myuni.edu with the amount you wish to borrow.

All I want is the subsidized loan, do I just tell them that value? Will they give me that amount from the subsidized loan, or will they draw from the unsubsidized pool of money first?

Crashtard

One of the nice things about the subsidized gov loans is that if you take out the full amount and there's some left over you'll get a refund from the school which you can just apply back to the loan or use for living expenses. I chose the third option, squander it. It wasn't a good option, and I don't recommend it.