clarifcation on financial aid Forum

[lawschool5523]

What is the difference between Est Dir Grad PLUS loanes, Est Direct Sub Staff Loan, and an Est Direct Unsub staff loan? Is it more adventageous to use one over the other? I was granted money from all 3 types, with the majority being the Grad PLUS loan. Thanks for your help! I am new to financial aid!

[angioletto]

You should use them in this order:

Sub Stafford (subsidized government loan - interest does not accrue while in school, not credit based)
Unsub Stafford (unsubsidized government loan - interest does accrue while in school, not credit based)
Grad PLUS (more similar to a private loan than a government loan, interest does accrue while in school, credit based)

The stafford loan amounts are based on individual financial need but anyone with decent credit is able to take out the full amount of GradPLUS (based on your school's student budget).

[annapavlova]

Unless you make a million dollars a year, you'll get full Stafford (8500 sub, 12500 unsub).

You have no choice but to take them in sub, unsub, and gradplus order.

Enjoy our new debt!

[lawschool5523]

Thank you! This helps a lot!

[MoS]

Also, you should note that Grad Plus loans do have a credit check. Its to make sure you haven't/aren't defaulted on any loans or payments.

[zeth006]

Also, you should note that Grad Plus loans do have a credit check. Its to make sure you haven't/aren't defaulted on any loans or payments.

Is it possible to co-sign on Grad Plus loans for better interest rate negotiating power?

[MoS]

Also, you should note that Grad Plus loans do have a credit check. Its to make sure you haven't/aren't defaulted on any loans or payments.

Is it possible to co-sign on Grad Plus loans for better interest rate negotiating power?

No, the rate is fixed. Here is a good site for info on the loans http://www.finaid.org/loans/gradplus.phtml

[zeth006]

Also, you should note that Grad Plus loans do have a credit check. Its to make sure you haven't/aren't defaulted on any loans or payments.

Is it possible to co-sign on Grad Plus loans for better interest rate negotiating power?

No, the rate is fixed. Here is a good site for info on the loans http://www.finaid.org/loans/gradplus.phtml

Thanks. Clears things up, but the Grad Plus interest rate of 8.5% scares me. Guess I'll be living on the cheap for 3 years!!!

[wreckem]

Also, you should note that Grad Plus loans do have a credit check. Its to make sure you haven't/aren't defaulted on any loans or payments.

Is it possible to co-sign on Grad Plus loans for better interest rate negotiating power?

No, the rate is fixed. Here is a good site for info on the loans http://www.finaid.org/loans/gradplus.phtml

Thanks. Clears things up, but the Grad Plus interest rate of 8.5% scares me. Guess I'll be living on the cheap for 3 years!!!

As of July 1, when all Federal Loans are only offered as Direct Loans, GradPlus Loans will be 7.9%. They already are 7.9% if your school already went with Direct Loans.

[zeth006]

No, the rate is fixed. Here is a good site for info on the loans http://www.finaid.org/loans/gradplus.phtml

Thanks. Clears things up, but the Grad Plus interest rate of 8.5% scares me. Guess I'll be living on the cheap for 3 years!!!

As of July 1, when all Federal Loans are only offered as Direct Loans, GradPlus Loans will be 7.9%. They already are 7.9% if your school already went with Direct Loans.

Dang, all this info on loans I came across tonight is confusing to digest all at once. All this is coming from someone who's going to law school!


Okey dokes. Quick question. Here's a breakdown of my grants:


USD Law Grant
Federal Work Study
Fed Direct Subsidized Loan
Fed Direct Unsubsidized Loan
Fed Direct Grad PLUS Loan

I assume the "Fed Direct" loans signify that my school has already switched over and will offer the loans at the 7.9% rate mentioned? If so, that still won't alleviate my wide-eyed look!

[artexprt]

I know I won't get the Stafford loan $$ until a few days before classes start. Is there any way to get Direct Grad Plus loan $$ before the start of term?