Subsidized Loans
Thu, 04/22/2010 - 21:41
by cassidy9Hi everyone. Can you tell me the difference between an unsubsidized loan and one that is subsidized? I heard it had something to do with how you pay it back, but I just don't know what the truth is about them
If anyone has a sotry about their student loans, please share. I need to get a loan this year, and I have many offers from different banks. I know it is a big deal, and I do not want to make the wrong decision.
Thank you for your help everyone!
cass
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Are student loans really that bad?
I'm going to be borrowing about $28,000 - 30,000 by the time I get out with a masters. It would be closer to $60,000 if I didn't have scholarships and may be less than $28,000 if I get into the work-study program *crosses fingers*. I'll have about $5,000 that I know of that will be interest-subsidized. I'm planning to finance them over 20-30 years.
I'll have a masters in Physician Assistant Studies so I should have a good salary when I get out.
Anyone have experience with them? I've talked to all my high school teachers that don't get paid jack squat and they tell me put everything on loans. What do you think?
I have already filled FAFSA out about 3 times. This will be my first year.
The first two years I paid everything out of pocket and with scholarships. I will have no debt from the first two years. It's the next 4 years that I must borrow for.
I'm getting Stafford loans for 4500 per year. Roughly 2500 are subsidized, the rest is unsubsidized, being based on my financial need. I don't know whether to accept these (9%, variable) interest or wait for the Federal Perkins which is strictly based on need that has a fixed rate of 5%.
I'll see. I talked to financial aid office and they said that all financial aid should be set up for me to choose from before classes begin and before I must pay.
Thank you for all your insight I truely appreciate it :)
I said "this will be my first year" I actually mean "this will be my third year in college".
Sometimes we need help paying for our education and a loan can be that assistance. Things you may want to consider (sounds like you have):
Will your salary allow you to pay more than minimum required?
What is the lowest amount of loan you can get by with? (avoid the temptation to use the loan cover your non-educational expenses while in college).
Can you get the same quality of education at another college for a better price?
Ultimately, I don't think there's anything at all wrong with getting loans as long as there's a commitment to complete your curriculum. You'll probably borrow more from your credit card lenders throughout your life for things you don't need. An investment in your education is almost always a good call. I had to borrow $15,000 during my college years. I graduated in 02 and now only owe $2200, I'll have my loans completely payed off by this fall. I used Sallie Mae and have been very pleased with their services. No regrets!I have 50k in student loans. Are there better interest rates out there?
I just started paying these off. The interest rates seem high compared to everyone else I've talked to.
I have 4 loans total:
$2600 federal subsidized (6.8% int)
$4400 federal subsidized (6.8% int)
$17,700 sallie mae private loan unsub. (8.625%!!!)
$24,500 sallie mae private loan unsub. (8.375%)
The private loans have some pretty massive interest rates. I don't know how to find out if they are adjustable, but at one point the interest rate was only 8% on one of those two. I would appreciate any help on how to pay these off at a lower overall cost.
Thank you for any help!
That seems to be about the going rate on these loans right now. The federal loans are at a fixed interest rate - when did you take out the federal loans? If they're subsidized, the interest rate depends on the date you had the loan. The government has changed them every year for the past few years. Once you take the loan, that interest rate is locked in for the life of the loan.
For the Sallie Mae loans, private loans are generally variable rate. Private education loans usually have higher rates than other types of loans (car, house, etc) because there's no collateral, and because they're a lot more risky. They're made to young people with no job and little or no credit, so even with a cosigner, they will have higher interest rates than most loans.
You could look into a private consolidation loan somewhere - I know Wells Fargo has one right now - but I'm not sure you'll get much better interest rates. As always, the faster you pay them off the better, so make extra payments whenever possible to make more headway on the principle.What rights do Students have if the Terms and Conditions of their loans have been broken by the Government?
Student Loans are supposed to have an interest rate equal to the RPI Rate of inflation. This means that students pay back the same value of money that they have borrowed. This is clear in all the documentation about student loans and has been followed by the Government until this year!
On the student loans website it says:
"Student loans are not like commercial loans. They are subsidised by Government and attract a low cost interest rate. This interest rate is based on the annual March Retail Price Index (RPI) or the highest base rate of a number of major banks plus 1%; whichever is lower." - http://www.slc.co.uk/statistics/facts_figures.html
Well in March RPI Inflation was -0.4%. - http://www.statistics.gov.uk/cci/nugget.asp?ID=19
But the Government is putting the interest of student loans this year at 0%. That sounds great, but in reality, it means that they are charging us 0.4% above the rate of inflation and making a profit!
In the terms and conditions with the loans this year it clearly says:
"However, to make sure that all borrowers pay back
the same amount that they borrowed, the
Government has to keep the value of what is owed
in line with the general rate of inflation. They do
this by working out the rate of inflation each year
as defined by the Retail Prices Index (RPI) and
fixing the interest charged to that rate. The aim is
to maintain the value, in real terms, of the amount
of the loan you actually owe. This means that
however long it takes you to repay your loan, you
will repay no more, in real terms, than you actually
borrowed." – Page 5 of the Terms and Conditions, under “What interest will I pay on the loan?”, Paragraph 2.
So they are breaking their own Terms and Conditions, making a profit of students and telling the students that you only pay back the real value of money!
What rights do Students legally have? Does this class as Fraud?
If you think this is wrong and want to help please sign this petition:
http://petitions.number10.gov.uk/Loansofstudents/
The idea of charging at RPI Inflation is to make it so you pay back the same amount of money as you have borrowed in real terms. If RPI is -0.4% then that means the same amount of money is worth more. So they should be REMOVING 0.4% from the sum of money students owe them.
Say the rate of RPI inflation fell to -5% and they charged us 0% interest, that is the same as RPI Inflation being 0% and them charging us 5% interest! It's not the same value of money at all!
u could talk to the lawyer, but good luck going against the gov'tAm I eligible for a Stafford Loan?
You must have submitted a FAFSA to be eligible for a Stafford loan.
For subsidized Stafford loans, you must have financial need as determined by your school.
You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.
HI ,my names is Mrs Gina Wills.i saw your question in yahoo answer .thats why am referring you to this God fearing man because i have been SCAMMED twice by this fake lenders.when i have bad credit is this man that gave me{ $80,000] .you can get to him via Email: wetlandloans@financier.com
tell him Gina referred you to him who he gave a loan some days ago .
Goodluck
thanks,UK Student loans: Why are Uni students so greedy and selfish?
You want me to pay for you to have the best education that money can buy so that you can go on to have the high-flying, high-earning career of your dreams? I have a better idea, how about YOU pay ME to go to University!
How does that sound? I'll sit in a nice warm classroom and you go outside at 6am in the rain and unclog the drains. Why should I give you a penny if I don't get something out of the deal?
If students go on to work as doctors and nurses in the NHS then of course they should have a subsidized education because their work directly contributes to British society, but what about all those people who go on to make a fortune working as cosmetics chemists or marketing executives? Why should I be paying them to get rich?
The student loan repayment scheme has always been more than fair but even when loans were interest-free with no obligation to repay until the student was in well-paid full-time work, still they complained! Why? Why in the World do they think they have a right to a free lunch at my expense?
I never had an education, I barely even had a secondary-school education and I've been working in dead-end jobs for the last twenty years. How is that fair?
Are people keeping up the news? My question is about the campaign for free University education and the backlash against proposals to raise interest rates on student loans.
It's not a free lunch. The country would grind to a halt without students going to university - you need a degree to do a lot of things these days that you never had to before, that's just how it is. Don't assume that a degree gets you a lot of money. My daughter is a teacher. After 5 years of studying she earned just over £20k and had to make loan payments. As soon as she left to have time out to have a baby, the interest added to the loan then wiped out the payments she had made. They can never afford a bigger house with one salary and two lots of student debt. It's not a bed of roses - but they are trying their best. Don't be so bitter - if you feel so hard done by, get out there and get yourself an education, the Open University is right there waiting for you.
Oh, and 20 years ago you could have had it for nothing - like I did. So you really, really have absolutely nothing to complain about.How to set up a recycle company in UK ?
I want to set up a recycle company, is there any special licence to apply ? If Yes, where and how to apply ? Is there any assistance from the UK Govt ? i.e. Low tax, loans or any other subsidise ?
Depends on what your recycling, you need permits for some and certificates for others and liscences for most which all costs money from the begining
I tried responding to your guestbook but you wont allow it so i replied in mine if you want the responseCan some give a rational explanation please?
If you cross the North Korean border illegally, you get 12 years hard labour.
If you cross the Iranian border illegally, you are detained indefinitely.
If you cross the Afghan border illegally, you get shot.
If you cross the Saudi Arabian border illegally, you will be jailed.
If you cross the Chinese border illegally, you may never be heard from again.
If you cross the Venezuelan border illegally, you will be branded a spy and your fate will be sealed.
If you cross the Cuban border illegally, you will be thrown into political prison to rot.
However, if you cross the BRITISH border illegally, you get a job, a driver's licence, a social security card, welfare benefits, food stamps, credit cards, subsidized rent or a loan to buy a new house, free education, free health care, a lobbyist in LONDON, a legal right to criticise and berate not only our Christianity but all of our Western ideals and principals and, in many instances, you can VOTE.
Yes, I know it is so .....but would someone please me tell why !!!!!!
It's 'Adieu' to British London!
With nearly one million illegal immigrants who have chronically failed to be kicked out
despite having the biggest recession in history with well over two million unemployed
and rising.
Just by entering our country illegally they have committed a crime and what do we do?
Reward them!
Once their big toe is on British soil they can automatically claim asylum.
Where as if this was stopped at the French ports they would be refused entry.
Well, the French don't want them, so much so that they have even stopped British search teams from using X-ray machines in lorry searches on the grounds of health & safety!
You ask why!
No love for our country
No patriotism
No feeling of belonging, of being a nation
If you should take away football for example, there would be a massive outcry.
Take away our country and barely a voice is heard
And one more thing:-
Get rid of this bl**dy so called BRITISH Government!
* I AM talking of ILLEGAL immigrants and NOT of genuine asylum seekers or other people who have a right to be here through EU laws.Why isn't Post-Graduate education subsidised by the government like Undergraduate education is?
In the UK.
You can't get a student loan like you did for your undergraduate studies, so it's much more expensive. Why isn't at least the 'in demand' post-grad degrees subsidised, like the sciences and engineering?
Because the tax payers are fed up of paying out for Mickey Mouse degrees for permanent students.Why Does America continue to fund Israeli Destruction?
Israel has recently bombed and destroyed much of the infrastructure of its southern province of Gaza, where the indigenous population lives.
In addition 1303 lives were lost.
America basically subsidised Israel and helped to bring about this destruction by way of loans and aid packages and is now about to pay again for the rebuilding of the southern province. The EU and everyone else is suppose to chip in too.
What is the point of this expenditure?
For them to do it all over again?
Gaza is an occupied southern province of Israel in that is controls all but one of the land boundaries, everything that goes in and out, its air and sea space, water, electricity -- it is in total control - though loathed to admit it for fear of having to take responsibility for Gaza and its origins.
It is trying to shuffle off the occupied status
a) to Hamas / the Palestinian Authority
and
b) to Egypt if it can get away with it.
PS only in the USA is "liberal" considered and insult - most other places it is just an ordinary word, with no such negative connotations.
Israel's wall has effectively produced a "green zone" in which those of the jewish faith can live. Bit like the Vatican only better armed and bigger.
I cannot understand America's thinking. As you say America gives Israel $billions a year to buy bombs from them and with the other hand spends millions repairing the damage these very bombs have caused and when,if ever, its all rebuilt whats to stop from Israel doing the very same thing all over again .? And Americans wonder why they are in a recession.?uni uk-bursary,loans,fee's etc?
Hi
i live with my nan who is on a state pension. would i be able to have subsidised rates for uni fee's and accomodation? how much on adverage would i need? any information about uni and money would be very helpfull thanks in advance. x
the fact that you are living with your grandparents will not affect how much you have to pay or how much money you get. it all depends on ur parents/step parents/adoptive parents income.
If you have no contact with your parents (u will need to prove with a letter from a 3rd party such as a lawyer, teacher, police officer confirming your situation)
or they have passed away (wil need to send a death certificate in)
then you wil be considered an dependent student which means the loan wil be based on your income.
cass,
unsub loans are not as good as sub loans. unsub loans have to be paid back with interest after you finish your school. the interest will start to be collected right after you get the loan, but you wont have to pay it back until you have finished your school.
Sub loans offer more benfits and easier terms. If you can get a sub loan, get it. Unsub loans often have higher interest rates as well.
I have an unsub loan, because that is all i could get. I have a decent interest rate of 9%, but I wish I could pay it off more quickly you know?
Any one have tips on how to pay off this loan more quickly?
Thanks for this good post. It is good to discuss.
jeff
I also have a subsidized loan which I plan to pay off in as little time as possible. It's one thing going through all the stresses of getting a qualification, but to have the added stress of paying off a huge loan once you have finished... that's not a worry I would like to have! So, until the day that a good education is free, be wise with your loan agreements!