STAFFORD LOANS NOT SUBSIDIZED FOR US?

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
joetheplumber
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STAFFORD LOANS NOT SUBSIDIZED FOR US?

Postby joetheplumber » Sat Feb 04, 2012 4:52 am

Pell Grant funding was increased, but other financial aid was cut. Graduate and professional students were no longer eligible for interest subsidized loans.[8] Repayment incentives will also be done away with after July 1, 2012.[9]

http://en.wikipedia.org/wiki/Budget_Con ... ite_note-7

Holy shit, why now? Where are you guys taking loans out then if they aren't subisdized.... with a 6.8%

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vanwinkle
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Re: STAFFORD LOANS NOT SUBSIDIZED FOR US?

Postby vanwinkle » Sat Feb 04, 2012 5:10 am

joetheplumber wrote:Pell Grant funding was increased, but other financial aid was cut. Graduate and professional students were no longer eligible for interest subsidized loans.[8] Repayment incentives will also be done away with after July 1, 2012.[9]

http://en.wikipedia.org/wiki/Budget_Con ... ite_note-7

Holy shit, why now? Where are you guys taking loans out then if they aren't subisdized.... with a 6.8%

Stafford loans were only ever a small part of the law school budget anyway. The total amount of Stafford loans possible (subsidized and unsubsidized) is fixed at something like $20,500 per year. The rest is going to be GradPLUS loans with an even higher interest rate.

Why now? Because Republicans want to balance the budget, and they hate knowledgesubsidizing education with government dollars.

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Tiago Splitter
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Re: STAFFORD LOANS NOT SUBSIDIZED FOR US?

Postby Tiago Splitter » Sat Feb 04, 2012 12:41 pm

vanwinkle wrote:
joetheplumber wrote:Pell Grant funding was increased, but other financial aid was cut. Graduate and professional students were no longer eligible for interest subsidized loans.[8] Repayment incentives will also be done away with after July 1, 2012.[9]

http://en.wikipedia.org/wiki/Budget_Con ... ite_note-7

Holy shit, why now? Where are you guys taking loans out then if they aren't subisdized.... with a 6.8%

Stafford loans were only ever a small part of the law school budget anyway. The total amount of Stafford loans possible (subsidized and unsubsidized) is fixed at something like $20,500 per year. The rest is going to be GradPLUS loans with an even higher interest rate.

Why now? Because Republicans want to balance the budget, and they hate knowledgesubsidizing education with government dollars.


Thank God someone is trying to fix the problem. Next step, government out of student lending altogether.

OP, subsidized Stafford loans made up $8500 of the amount one could borrow each year.

joetheplumber
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Re: STAFFORD LOANS NOT SUBSIDIZED FOR US?

Postby joetheplumber » Sat Feb 04, 2012 4:17 pm

Tiago Splitter wrote:
vanwinkle wrote:
joetheplumber wrote:Pell Grant funding was increased, but other financial aid was cut. Graduate and professional students were no longer eligible for interest subsidized loans.[8] Repayment incentives will also be done away with after July 1, 2012.[9]

http://en.wikipedia.org/wiki/Budget_Con ... ite_note-7

Holy shit, why now? Where are you guys taking loans out then if they aren't subisdized.... with a 6.8%

Stafford loans were only ever a small part of the law school budget anyway. The total amount of Stafford loans possible (subsidized and unsubsidized) is fixed at something like $20,500 per year. The rest is going to be GradPLUS loans with an even higher interest rate.

Why now? Because Republicans want to balance the budget, and they hate knowledgesubsidizing education with government dollars.


Thank God someone is trying to fix the problem. Next step, government out of student lending altogether.

OP, subsidized Stafford loans made up $8500 of the amount one could borrow each year.




Are you sure about this, that 8,500 would be subsidized. Because while this is what is listed in the LSAC website and the stafford loan website, the new statute (Budget Act of 2011) hasn't come into effect yet. It comes into effect this July and I am afraid that these website have not been informed or have not updated their website. I do hope you are right though.

sidhesadie
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Re: STAFFORD LOANS NOT SUBSIDIZED FOR US?

Postby sidhesadie » Sat Feb 04, 2012 4:57 pm

$8500 WAS subsidized, going forward, there will be no subsidized stafford loans for law school, the entire stafford amount will be unsubsidized.

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dingbat
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Re: STAFFORD LOANS NOT SUBSIDIZED FOR US?

Postby dingbat » Sat Feb 04, 2012 5:09 pm

vanwinkle wrote:Why now? Because Republicans want to balance the budget, and they hate knowledgesubsidizing education with government dollars.


Which means that student loans are now quite possibly the worst loans on the planet. The only loans with a higher interest rate a normal person is likely to get is a credit card (I'm ignoring payday loans) - which will be discharged in bankruptcy.

Hell, it already exceeds usury laws in several states (AR, DE, IO, KT, MI - but might not be up-to-date)
Note: usury laws are some of the most neutered laws states have and do not apply to the vast majority of loans.

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dingbat
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Re: STAFFORD LOANS NOT SUBSIDIZED FOR US?

Postby dingbat » Sat Feb 04, 2012 5:15 pm

sidhesadie wrote:$8500 WAS subsidized, going forward, there will be no subsidized stafford loans for law school, the entire stafford amount will be unsubsidized.


For a typical law student, this means that upon graduation, their lown balance will be $1,981 higher than it would have been previously (assuming maximum $8500 subsidized stafford loan taken out at start of each academic year at 6.8% and 12 month period since L3 start date and loan repayment)

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sach1282
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Re: STAFFORD LOANS NOT SUBSIDIZED FOR US?

Postby sach1282 » Mon Feb 06, 2012 8:16 pm

So I'm in at the University of Toronto law school. You know what it's like up there? PRIVATE LENDERS give out loans to law students at prime +.5%. Canadian prime is 3% right now. Unfortunately, they won't lend to international students without a Canadian co-signer. God I wish I had Canadian citizenship...




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