Last night, the high school where the Princess attends put on a Financial Aid and Scholarship Information program. I must say my head is absolutely spinning with the amount of information we received. There are SO many things to take into consideration. The maximum amount of allowed subsidized loans. The interest rates of subsidized vs. unsubsidized. Estimate Family Contributions. PLUS loans.
I think the biggest eye opener for me was the amount of interest you end up paying if you defer the interest payments until 6 months after the student graduates. The interest accrued during the 4 years then folds into the loan and so you end up paying interest on those four years of interest, which can eventually lead to the student paying back twice the original loan amount. THAT is frightening. SO much to think about!!!!
I've requested a meeting next week with the college counselor at the High School -- because of course I came up with a jillion questions after the program. For now though, my brain is still reeling!
Make sure you're writing all of those questions down for the meeting. Hope it all becomes clear!
ReplyDeleteThe interest shouldn't accrue on the subsidized loans, only the unsubsidized. (DH had unsubsidized at 8.5% interest and boy did they compound, I had subsidized at 2% interest that didn't accrue while deferred. I love my parents. We rice and beaned until his loans were GONE.) It's great you're looking into this!
ReplyDeleteAnd this was even MORE confusing before the Obama administration took the advice of economists and hugely simplified the FAFSA. Things have to be a lot more clear than they did 4 years ago so you have a better idea what you're getting into.
Good luck with this!
ReplyDeleteGet your info together and get your FAFSA done asap. and make sure your daughter applies for any and all scholarships you can find.
Nicoleandmaggie is correct....subsidized don't accrue interest until AFTER they leave school.
Email me privately, if you have any questions....I've been through this twice now(and STILL going through it).lol