Financial Aid N00b

swimcatsmom
Sat, 19 Apr 2008 22:35:43 +0000

No .5% interest rates out there now.

Perkins loan: 5% interest rate. The Govt pays the interest while you are in college at least 1/2 time and for a 9 month grace period afterwards. Then you start paying the interest and repaying the loan.

**Stafford loan:**Can be either
***subsidized:***6% interest rate for 2008-2009 school year. (is droppping gradually over the next few days) Govt pays the interest till 6 months after you finish school or drop below 1/2 time. Then you are responsible for the interest and start repaying the loan and the interest.
***unsubsidized:***6.8% interest rate. You are responsible for interest from day 1. Interest can be capitalized (is added to the loan amount and you will pay interest on the loan plus the interest). Repayment of loan starts months after finishing school/dropping below 1/2 time.

finaid.org has more information on loans here
[FinAid | Student Loans](http://www.finaid.org/loans/)