All of @Mwfan1921’s information is correct. And you are correct about being able to cancel the loan within 120 days. At the schools where I worked, the student could bring a check to the financial aid office for the amount that they wanted to return on the loan; we returned it for them. You would want to discuss the timing with the financial aid office. You’ll have to return the money in time so that the school can make the return before the 120 days. If you do that, any interest that accumulated to that point is cancelled, as well. Even if you don’t earn enough to cancel the whole amount, canceling as much as possible is helpful in the long run. Always cancel unsubsidized loans before subsidized.
It was also mentioned that you could borrow an additional $1,000 unsubsidized loan. This is important to know, in case you get into a bind. You’d just need to talk to your financial aid advisor to complete the request if you find yourself in need of additional funds at some point in the year. As long as long as you’re enrolled at least half time when the loan disburses, you can borrow that additional $1,000.
And to add to Kelsmom’s fine post (and the others) you can always ask the bursar’s office to work with you on the timing of when charges post to your account. They may say no- but they could say yes. We had luck with two colleges when we were in a bit of a cash flow crunch, and we found them very nice and accommodating. Some charges post and there is no flexibility (you don’t want to risk not being able to register for classes) but others have some swing built in (we found housing and meal plan to be those “swing” charges.)
Doesn’t the federal government pay the interest on the subsidized loans while the student is enrolled and for the first six months after graduation?
If so, wouldn’t that give the OP flexibility and they could pay off their first semester loan at any point before six months post-graduation and not have it “cost” them any more than if they paid it off immediately?
Yes, that’s correct. However, that’s more than four years away, and I honestly hesitate to say that this will still be the case in the future (while the first year would probably have the current rules, loans borrowed in future years may or may not). But yes, as of now, subsidized loans don’t accrue interest until six months after the date that the student graduates or drops below half time (this is the grace period). Paying in full before that point allows the student to have those loans interest free … but it’s important to get the payment in and documented in the loan servicer’s system prior to the end of the grace period.
So, @acidghost , based on what @kelsmom said above, I don’t think you have to scramble so hard for your December tuition payment because you can repay your first semester loan at any point without penalty or interest up until 6 months after you graduate. So that gives you a chance to accumulate some savings from your work study job . As noted above, that may change for future loans if the federal government decides to “revamp” the loan process as part of DOGE efforts.
Note that unsubsidized loans do accrue interest that is not paid for by the government, which is why they should be cancelled or paid off first. Carlton (and CPP and any other college) will give you a mix of subsidized and unsubsidized loans.
Also just checking — will your parents let you go to Carlton if the money works out?
And are you okay with either no engineering or the 3-2 engineering program at Carlton (I think they extend financial aid for this but it’s always good to check ).
I don’t know. They’re not very happy about me going to Minnesota, at the same time, I don’t think I can be productive academically at home. My twin’s getting his financial aid revised, I think if he gets a good package it’s more likely for me to go if both of us go.
Yes, but if my math is correct the interest is $5.41 a month on a $1,000 loan at the current 6.53% interest rate on federal student loans. ( @kelsmom or others — am I correct with that calculation?)
So one option could be that you pay the interest of $5.41 a month if you don’t want the interest to accrue. The government typically gives students 10 years to pay back their loans.
Hoping other posters with more information on paying back student loans can weigh in.
If your twin’s package is being revised, hopefully yours will be too😊.
Will your parents be okay with your going if your brother does too?
It sounds like Carlton is where you want to go — I’m just hoping you are comfortable with the engineering component of the decision making process. I think if you leave yourself open to the 3-2 engineering option at Carlton then it could be a win-win.
That would be correct (but it’s 6.53%), assuming that the loan is not accumulating any interest during school/grace period - interest would be $5.41 per month using 30 days between payments. It could be paid online, but you have to specify that it’s for interest rather than principal.
So it sounds like it is safe to say that the OP could pay $5.41 a month when they start school in order to save some of their work study money for the December tuition bill and then they could also pre-pay part or all of their loan at any point with any savings they accumulate, if they want to.
My twin got the same aid as me! I really want to go, but it seems like my parents are too helicopter-y to let me go lol. I’ve been online schooled the entirety of high school so they tell me I’ll struggle in such a big change of environment. I really hope I can change their mind soon.
For 3+2 programs, financial aid at the “2” school is determined by the “2” school. It may be better or worse than at the “3” school. Note also that it involves an extra year of costs (after financial aid).
They have some financial aid for the 3-2 program and merit scholarships. I think if the financial aid doesn’t come out good, I could always decide higher education for engineering.
Did your twin also do online high school and are they letting him go? Or did he go to an in-person school?
What are their specific concerns about the transition? Time management? Peer relationships? Academic rigor? Is there anything you can do to address their specific concerns either through your own self-knowledge or specific programs at Carlton that provide support?
Twin also was in an online high school, got into UCI and they seem a lot more comfortable with that since UCI is ~50 miles away. Specific concerns are peer pressure, weather change, and also they’re extremely religious, so there’s that too. Every time I talk to them, they kind of don’t even acknowledge Carleton as a choice. So far, the “plan” is to commit to CPP and wait for me to get off of the UCI waitlist, and they talk about it like it’s a certainty. So, maybe I’ll just hope my luck works and I’ll get off the WL.
Not knowing what their concerns are, maybe take a look at what’s available here and see what is available that might help address their concerns — maybe make a commitment to them that you will go to the skills center and attend faculty office hours regularly etc.