Do you have to pay upfront for the Stafford Loan?

Question

My mom told me that one of her friends had to pay for the Stafford Loan first, then she was gradually paid back.....Im not understanding how this loan works...

and when do loans typically arrive??

Answer 1

Stafford loans are taken out by the student and the money is sent directly to the school. The student then starts repaying the loan 6mo after graduation.

PLUS loans are taken out by parents, and payment typically begins as soon as the loan is disbursed (sent to the school).

How long it takes varies depending on both the lender and the school. The school has to "certify" that the student is actually enrolled and that tuition costs as much as the student has asked for in the loan.

Hope that helps.

Answer 2

I recieved a stafford loan a coupole of years ago. I have never paid for a loan up front. In cases like that, when you have bruised credit or other pending student loans or loans in default, you may be required to pay up front because you are considered a risk to that particular lender. Then, gradually you may be paid back. Not in too many cases does this even happen. I've only heard of people being payed back was through the left over monies of initial loan and that would be considered the refund though. So to answer your question, I've never heard of having to pay the stafford up front. I most definitely didnt have to.

Answer 3

what ur mom said happened to her friend doesnt make any sense..if u had to pay the loan ppl upfront before u can even get the loan..u dont need the loan in the first place.

i took out a stafford loan last year for school i didnt have to pay them anything, i will have to start repaying the loan six months after i graduate.

if u apply for the loan now, you should get ur loan the week before or the week after school starts if u go to a university.. but thats if u apply in time. if u apply after school starts u may have to wait a couple of weeks.

if u go to a community college whatever financial aid money u receive you wont get until after school starts so u have to pay for registration fees and things upfront, and then u will get ur financial aid as reimbursement.. this happened to my friends here at a community college in my town.

Answer 4

You dont start paying back your student loans until 6 months after graduation or if you should leave school. You can begin making payments at anytime however. PLUS loans require payment typical months AFTER the final disbursement, however, your parent can file for a forbearance if making payments is currently difficult. Interest would still accure, but no payment will be due. Good luck! Contact you financial aid office.