Difference between private student loans and awarded loans?

[sandooch]

I need help from those of you who've been through the college enrollment process or have children who've gone through it, especially applying for loans.

I was very happy to receive an envelope today from one of the colleges my daughter had been accepted to stating that she was awarded a merit scholarship and Cal Grant award that totaled $27,708 (yearly tuition is $34,228). Below these awards she has an option of choosing several student loans including the Federal Carl Perkins Loan and the Stafford Loan.

What I'd like to know is if there are any advantages to the loans offered on this letter compared to private student loans?

This is all new to me, so any help would be greatly appreciated.

[speedygirl]

I need help from those of you who've been through the college enrollment process or have children who've gone through it, especially applying for loans.

I was very happy to receive an envelope today from one of the colleges my daughter had been accepted to stating that she was awarded a merit scholarship and Cal Grant award that totaled $27,708 (yearly tuition is $34,228). Below these awards she has an option of choosing several student loans including the Federal Carl Perkins Loan and the Stafford Loan.

What I'd like to know is if there are any advantages to the loans offered on this letter compared to private student loans?

This is all new to me, so any help would be greatly appreciated.

We've been through it with both kids for undergrad and graduate school. DS and DD got full tuition scholarships to their universities but the dorm fees, board, fees, etc... average out to about $12,000 each per year that we had to pay out of pocket. Check to see what your state has. We took out MEFA loans which were lower interest. MEFA is MA based but it'll give you an idea of what I'm talking about. http://www.mefa.org/ If you've done your FAFSA forms you'll be able to find out which type of loan you're eligible for. there are different types of Staffords like subsidized and unsubsidized. The financial counselors at the school are really good at steering you in the right direction too.
We've been dealing with the FAFSA since 2001 and I'm happy to say this is the final year. DS is an adult on his own and is handling his own affairs with the doctoral program his in.
Good luck!

ETA...I forgot to add the most important thing, these loans have better interest rates then private loans and can be deferred until after graduation.

[pepperpot]

I also hear you can use these loans for IVF procedures.....



*sorry couldn't resist*;)

[speedygirl]

I also hear you can use these loans for IVF procedures.....



*sorry couldn't resist*;)

LMFAO, but oh so appropriate in light of what Nadya used hers for.

[sandooch]

Speedygirl, thank you so much for that info and congrats to your kids on getting full scholarships.

If my daughter does choose this college, it is right down the street from us, so she won't need to stay at a dorm. I also had a feeling that the loans she was awarded did give her a lower interest rate. That and the fact that they are subsidized is a big plus.

We will be going to the open house in a couple weeks, so we'll talk to a counselor then. I just didn't want to go in not knowing anything, ya know?

[speedygirl]

Speedygirl, thank you so much for that info and congrats to your kids on getting full scholarships.

If my daughter does choose this college, it is right down the street from us, so she won't need to stay at a dorm. I also had a feeling that the loans she was awarded did give her a lower interest rate. That and the fact that they are subsidized is a big plus.

We will be going to the open house in a couple weeks, so we'll talk to a counselor then. I just didn't want to go in not knowing anything, ya know?

You're very welcome and congrats to your DD. That's a really nice package they're giving her! If you need anymore info ever feel free to PM me. The whole process was mind numbing when we first started out. It's entirely different then when DH and I went to college.

[sheila_361]

I got both the Subsidized and unsubsidized Stafford loans for my loans for Culinary school, I have to re-apply again in June.

[jedmatters]

If my daughter does choose this college, it is right down the street from us, so she won't need to stay at a dorm.

Many colleges and universities are now requiring ALL incoming freshman to live on campus for the first year, even if you live in the same town. You may want to check into that.
My son got a full paid, full ride, with dorm fees and basic meal plan included. But he still applied with FAFSA for various other grants and scholarships, for extra money in his pocket. With all the grants and scholarships, he got handed an extra $9850 each semester this year, that he does not have to pay back.

Have her apply for any and every scholarship she has any qualification for. Many people by-pass scholarships for $250, or $500 for the higher values, so those lower ones have fewer people apply. Chances are better to get those: and a handful of low scholarships add up quickly. Apply for EVERYTHING.
Ask her high school counselor what scholarships the school knows about. Apply for them.

[sandooch]

Many colleges and universities are now requiring ALL incoming freshman to live on campus for the first year, even if you live in the same town. You may want to check into that.
My son got a full paid, full ride, with dorm fees and basic meal plan included. But he still applied with FAFSA for various other grants and scholarships, for extra money in his pocket. With all the grants and scholarships, he got handed an extra $9850 each semester this year, that he does not have to pay back.

Have her apply for any and every scholarship she has any qualification for. Many people by-pass scholarships for $250, or $500 for the higher values, so those lower ones have fewer people apply. Chances are better to get those: and a handful of low scholarships add up quickly. Apply for EVERYTHING.
Ask her high school counselor what scholarships the school knows about. Apply for them.

Thank you so much, and that is awesome news about your son. You must be so proud.