How does the student loan process work?

Question

Can I take out a larger loan than what school costs? Can I pay it back before I graduate to avoid interests?

Answer 1

The amount you qualify for will depend on your grade level and other financial factors from your FAFSA. This is a preset amount that cannot change. You can however, apply for a private loan, see Wachovia and Citibank (NO FEES). But you cant borrow more that the total cost of attendance as determined by the school. BORROW WISELY!!!!!!!! The industry has changed a GREAT deal in the last few months and will continue to change. In the past, paying early was not a penalty, HOWEVER, some lenders such as NELNET will charge a penalty for paying off early. Pay VERY close attention to the borrow benefits, especially now. Many lenders are also in the process of making changes, such as Citibank, Well Fargo, and Nelnet. Good luck!

Answer 2

Yes you can take out more than you really need, but you do have to pay it back. As far as paying it back prior to graduation, I believe that you can. Once you graduate, interest does begin to accumulate, most loans do not require you to make a first payment until 6 months after you graduate and if you don't have a good enough job to begin paying, they will allow a deferment.

Answer 3

Well, when I went to the local community college, they gave me a certain amount. I paid for my classes, bought my books, and whatever was left over was mine to keep. I paid it back when I stopped going to the college. I didn't pay for X amount of years, I took out a loan by semester, because I did exactly what I thought I'd do. I left that school and went to a vocational school.

Hope that kind of helps/answers your question.