Blue and Gold question

[bakemaster]

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@nick_scheu

I could be wrong, but as I understand it a subsidized loan doesn’t cost to anything while you’re a student. So if you take out the $5,500 and don’t spend it, you could pay back the exact same $5,500 after you graduate.

There are fees associated with direct loans, subsidized or unsubsidized. I believe origination fees have been phased out, but you would still have to pay a default fee of 1% which is taken from the disbursal amount rather than charged up-front. So if you take out a $2,000 direct loan, whether subsidized or unsubsidized, you will actually receive $1,980 after the 1% fee is deducted. Though it seems like this doesn’t cost you any money, the principal owed on your loan will still be $2,000. So if you paid back exactly what you received you would still be $20 short. Still a heck of a good deal either way, but there’s no reason to borrow more than you think you will spend, plus a little room for error.

@munaluna

I’m trying to figure out if you really need the full $30,000. … I have no idea if I should get the loans or not. Are you allowed to get them half-way through the semester?

At most schools, the answer is yes—you can choose to take out a direct loan at any time during the school year. I can’t say it’s true of every school because it’s the school’s right to make their own deadlines, but the direct loan program allows it in general, and I haven’t come across a school yet that doesn’t allow it. It’s also something incredibly simple to check—just call up the school’s financial aid office and ask if there is a deadline for taking out a direct loan during the school year.</p>

<p>“Cost of Attendance” is only an estimate. The “cost” (estimated) of room and board will change depending on whether you’re living on-campus, off-campus staying with your parents, or off-campus not staying with your parents (this is something you reported on the FAFSA, and if it changes, you should submit FAFSA corrections or tell your financial aid office directly). Some people will spend more than the estimate and some people will spend less. It’s a very good idea to make a budget of your own and use that to decide whether to take out loans at the beginning of the semester, and if so, how much to take. The financial aid office should be able to give you some guidance in creating your budget, and don’t worry about losing any financial aid if you tell them you’re planning to spend less than their estimate. They’ll just say, good for you!</p>