Financial Aid N00b

lowgpa123
Sat, 19 Apr 2008 22:23:39 +0000

Hi I’ve been getting different information and confused about loans. My teacher told me that when he went to school he had taken out a loan at an outrageously low interest rate (like .5%) that did not start adding interest until 6 months after graduation. My Financial Aid is roughly 15,000 broken up in Perkins, Stafford, and PLUS loans. These rates are much higher. Do they accumulate interest over the year or do they only gather interest after graduation. When do I need to pay these back (during school or after graduation?). Also, how is a private loan from a bank different from one from FAFSA. Wachovia offers a loan that does not need to be paid back 6 months after graduation, but does it accumulate interest until then.

Thanks in Advance, I am really confused on this…