<p>I’m looking at my account online for my loans, and it shows some amounts of money under REBATE.
Rebate: “The amount of the up-front interest rebate given to Direct Subsidized Loan, Direct Unsubsidized Loan and Direct PLUS Loan borrowers. The rebate amount is equal to a percentage of the loan amount borrowed. You must make all of your first twelve required monthly payments on time or the rebate amount will be added back to the principal balance on their loans.”</p>
<p>Does this mean I have to make the monthly payments after the grace period AFTER my graduation in order to get these rebates?</p>
<p>Currently have $9000 in loans under my belt just from freshman year, roughly $3500 in SUB and $5500 in UNSUB. I’m looking at a possible $5000 loans in sub/unsub for the next each three years.
Is that too much in loans? (~$24k)</p>
<p>How do they decide when to give students subsidized loans and when to give unsubsidized loans?</p>
<p>Major: Business Economics at UCI</p>
<p>Yes, it means you have to make the payments WHEN THEY ARE DUE (which is 6 months after graduation, leaving school, or dropping below half time). </p>
<p>As for subsidized vs. unsubsidized, that has to do with “need.” Cost of attendance minus Expected Family Contribution minus all grants & scholarships minus any work study minus any Perkins loans equals eligibility for subsidized loans (which are only awarded up to the annual maximum for year in school). For unsubsidized loans, it’s COA-EFC-grants/scholarships-work study-Perkins loans-subsidized loans=eligibility for unsubsidized loans (up to the annual maximum for year in school).</p>
<p>Annual maximum for dependent students: freshmen=$5500 (of which UP TO 3500 CAN BE subsidized), sophomore=6500 (of which UP TO 4500 CAN BE subsidized), junior and senior=7500 (of which UP TO 5500 CAN BE subsidized). For independent students, it’s the same except freshmen & sophomores can get another $4000 unsubsidized & juniors and seniors can get another $5000 unsubsidized annually.</p>