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Hello guys, this is a wonderful site that I decided to register and hopefully I wont be belittled.
I asked somewhere else and they made me feel like an idiot :(.
OK so here goes, these are probably stupid questions:
I am a first generation college student and I was recently accepted to UCSD. I got financial aid grants that covers my first year tuition.
I also got offered $5500 in Federal Direct Loans Subsidized.
On their website regarding the fees for Federal Subsidized Direct loans it says, that ""Loan origination fee of 0.5%, which results from a 1.0% origination fee that has an up-front interest rebate of 0.5% fee. Effective for loans first disbursed on or after July 1, 2012 the loan origination fee will be 1.0%."
I understand that I'm getting a rebate of 0.5% fee which means the origination fee is 0.5%.
The part that is confusing to me is the end where it says " Effective for loans first disbursed on or after July 1, 2012 the loan origination fee will be 1.0%."
1. So is the actual origination fee 0.5% after the 0.5% rebate is applied to 1.0%? Or is it actually changed to 1.0% on or after July 1, 2012?
2. Secondly, if I were to accept $5500 for the direct loan, and I end up using only $2500 after I graduate, do I pay interest for $2500 or $5500?
3. What happens to the $3000 in my student account that I didnt use during my time at UCSD?
Sorry again for the stupid questions, the UCSD financial aid office didnt give me the responses I was looking for.