Understanding the financial aid

Paying for College
1

<p>I need assistance in understanding the financial aid process</p>

<p>Here goes my story:</p>

<p>I was born in US. At the age of 3, my parents got divorced. I moved to India with my father and retained my US citizenship. I have done my entire schooling in India and now I am again moving back to US for higher studies along with my father who wants to make his living there.</p>

<p>I have been accepted to Georgia Tech and I need assistance in filling the financial aid form. Being a US citizen, I am eligible to file FAFSA.</p>

<p>Can you please explain me the difference between the following loans :

  1. Institutional Loans
  2. Federal Subsidized Stafford Student Loan
  3. Federal Unsubsidized Stafford Student Loan
  4. Federal Plus Loan - Parent Loan</p>

<p>My father does not want to apply for the parent loan since he has the notion that interest is too high. I dont know how true it is.</p>

<p>So , I would be grateful if anyone can explain the difference btw these loans
and advise me to apply for which loans.</p>

<p>Thank You</p>

<p>Ravi</p>

2

<p>

</p>

<p><a href=“http://www.finaid.com%5B/url%5D”>www.finaid.com</a>
I imagine institutional loans are offered by your college, no?</p>

3

<p>yes, institutional loans are provided by georgia tech…</p>

<p>but they have three types of loans under that category:

  1. 7% interest rate
  2. 7.5%
  3. interest free</p>

<p>So, what do you advise? For which loans should I go for? </p>

<p>I can demonstrate financial need since my father lost his job two years ago and his only source of income is the interest income from his savings ~3000$p.a.</p>

4

<p>Note that you do not have to make a decision about what loans to take until after you learn your financial aid package from a college. Process is usually: file a FAFSA and have it sent to schools (can be done on-line), after or at the same time you are admitted, college will provide you with the financial aid package it has determined for you which could include grants, work study and loans (for those GTech institutional loans it will decide which ones to offer in your financial aid package). You then decide which parts of the aid package you will accept.</p>

5

<p>So, that means georgia tech will first provide me with financial aid package and then I have to fill their financial aid form?</p>

<p>Reply quick as I am confused…</p>

6

<p><a href=“Blow the Whistle! (404 error: page not found) | Financial Aid”>Blow the Whistle! (404 error: page not found) | Financial Aid;
You apply for aid with the FAFSA form and by completing Georgia techs form ( online)</p>

<p><a href=“Blow the Whistle! (404 error: page not found) | Financial Aid”>Blow the Whistle! (404 error: page not found) | Financial Aid;

7

<p>But pls. advise me for which loans should I apply on the georgia tech online form?</p>

<p>There are four choices as previously mentioned:

  1. Institutional Loans
  2. Federal Subsidized Stafford Student Loan
  3. Federal Unsubsidized Stafford Student Loan
  4. Federal Plus Loan - Parent Loan</p>
8

<p>I mean what will be the best combination for me?</p>

<p>Also, what is the current rate of interest for parent loans?</p>

9

<p>Grants are preferable to subsidized loans
Subsidized loans are preferable to unsubsidized loans
But all govt backed loans have fairly low interest rates, look at the link.</p>