Subsidized loan vs unsubsidized loan vs. private loan?
Ok, I am going to college at a private University in a different state. Tuition, room and board, and most of the extra fees come out to about $24,500 for a year.
I have $11,080 in scholarships and a workstudy but the rest is going to be in loans.
I have received/qualified for the following:
$3500 subsidized stafford loan
$2000 unsubsidized federal student loan
The difference from NextStudent or Citibank
I’m not sure which loan(s) to accept/not accept. I am in a bind because no one is willing to cosign with me (currently 17), however, when I turn 18 NextStudent can get me the loan without a cosigner.
Can anyone give me more information on these loans and what to do? It’s all very confusing and my parents are very much help at all.
Thanks.
Parents *ARE NOT* very much help at all.
Thought I’d clarify, sorry.
You won’t qualify for any private loan without a cosigner, even at 18 years old so I’d forget that. See where it says: “All loans are subject to credit approval”? http://www.nextstudent.com/private-loans/private-loans.asp
Since you are only 18 you have no credit and will not likely be approved. All legit private loans to you right now will require a cosigner. Also, remember 6.8% is a good interest rate for a student loan.
On your fin aid package. You should accept both the sub and unsub loans at 6.8% (they will have these rates).
3,500 + 2,000 + 11,080 = 16,580 total aid
(also be aware work study normally isn’t given to you up-front so it can’t be used to pay for your tuition. Work study is just an opportunity to get a job, you earn the money as you go just like a job.)
I’m not sure how much of the 11,080 this is work study but it would likely need to be added to the amount you will have to come up with up front to go to this school.
so….24,500 minus 16,580 in fin aid = 7,920 cash you will have to beg from somewhere. (again plus that work study amout)
You might consider a fall back school in-state. One that you can attend on the 5,500 in loans only. Don’t forget, if you are having a hard time coming up with the cash now, you’ll have to do this all over again next year.
Good luck… hope it helps. See if your parents will do a PLUS loan.
