I am eligible for a SUBSIDIZED Stafford Loan but am confused about certain things. Does being eligible for this type of loan mean that I need only repay what they give me (e.g. they give me $3500, I give them back exactly $3500) or will I need to pay them more? What is this about the 1.5% federal origination fee, and the 6.8% fixed interest rate?
2007-07-17 15:41:50 · 5 answers · asked by kokis0394 2 in Education & Reference ➔ Financial Aid
If you borrow $3,500, you lose 1.5%, or $52.50 due to the origination fee, leaving you with $3,447.50
You repay the full $3,500 at 6.8% (or whatever the interest rate is due to the formula used to establish the interest rate). Your repayment period begins 6 months after you complete any form of education - bachelor's, graduate, post-graduate. You need to obtain a waiver indicating that you've continued your education to maintain the deferment status. Since your loan is subsidized, US Government / Sallie Mae pays the interest for you.
2007-07-17 16:04:12 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Contact your financial aid office to determine which lenders are paying all fees. The majority due because of competition. The currently interest is fixed at 6.8% as mentioned early. When you go into repayment you will pay your original loan amount plus interest. You should be able to get a repayment chart from your school or online.
2007-07-21 14:28:00 · answer #2 · answered by John 3 · 0⤊ 0⤋
First year level Stafford loan in $3500 ( as you already know). Repayment begins 6 months after you graduate, withdraw, or drop below half time status. There are many lender that now pay the origination fee for you ( this is one of there borrower benefits. Sallie Mae is not the federal government, but a lender, who is making money off your student loans. I searching for a lender for your loan, I would try to find one that pays your origination fee ( meaning, you borrow $3500, $3500 get applied to your tuition).
When you go into repayment , interest will start to accrue, so you will end up owing more than he $3500 ( unless you pay the loan in full before you go into repayment).
The 6.8% interest rate if for the life of your loan unless you consoldate your loans at time of repayment and lock in a different interest rate or you take advatage of your back end ( at the end of the loan) benifits. Alot of lenders offer interest rate reductions after makng a cetain number of payments or making automatic payments. I would try Citizens Bank or EdAmerica. They currently pay origination fees for loasn for the 0708 aid year.
2007-07-17 16:36:04 · answer #3 · answered by Cobalt 2 · 0⤊ 1⤋
Some subsidized loans can have hidden fees attached that you may not know. Kindly follow the link below to know more . thanks for using yahoo answers.
2016-05-21 14:17:59 · answer #4 · answered by margo 3 · 0⤊ 0⤋
Wth a sub stafford there is no interest. It is with unsub you collect interest on top of your loan amount.
2007-07-18 04:38:32 · answer #5 · answered by Anonymous · 0⤊ 0⤋