Another question about loans! (fun, fun, fun!)

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To give you guys some background...

I just finished up 4 years at Georgia State University in a BA Anthropology program and added on a Nursing major. I begin my pre-reqs this fall and will graduate in 2 1/2 - 3 years with both a BA and BSN. I go to Georgia State University and am fortunate enough (it definitely wasn't easy!!!) to keep the HOPE scholarship all 4 years. This means I went to school basically tuition-free, aside from the $4,000 in loans I had to take out my first year to stay in on-campus housing. Ridiculously costly here. Beyond that, though, I haven't taken out any loans. I have one more semester on the HOPE scholarship, during which I'll be starting my pre-reqs. However, in the spring, I will be out of HOPE and begin paying in-state tuitions.

1.) Since I have to accept loans at the beginning of fall semester, should I go ahead and accept subsidized loans for spring? I'm eligible.

2.) Since I don't know how much in federal direct subsidized loans I'll be offered next year, should I go ahead and accept the full amount this year to use next year as well? I don't want to take out unsubsidized loans at all.

3.) Can I begin paying off my loans monthly while also taking out new loans? I have savings from working full-time throughout school, but not enough to pay for a whole semester. Does it make sense to start paying off the $4k in loans now, while taking out more loans? Sounds silly, but I also believe it's important to have some money in savings in case of emergency. I don't have health insurance and there may come a time when a few thousand reeeeally comes in handy, so I'd feel more comfortable paying a few hundred per month right now.

This is the first time I've really had to worry about this, since I kept HOPE all four years. GSU generally runs about $7,000 per year in-state (this is rising). I've calculated my cost to be about $20,500 + the $4,000 I've already taken out if I stay on track. This means three semesters of pre-reqs and about two years in NS. Is this accurate? I'm really the first person in my family to pay her own way through school completely... it's beyond stressful.

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Hello! Fellow GSU grad here. I wish i was this detailed in thinking about my loans when i was in school. I had HOPE all 4.5 years and still took out loans even though i didn't need them...and add that i lived on campus for free for 3 years....didn't know any better (now i'm going back to school as a second career student and it will cost me at least 30K in loans minus living expenses in addition to my current loans)

I would use some the money you saved towards your tuition and save some of it for rainy days vs trying to pay off the loans you've already taken out. Kinda doesn't make sense if you go the route you are thinking originally.

only take out the minimum amount of loans that you need...i.e offered $5K, you have $3K saved, pay $2k towards tuition and save $1K. might sound simple but a lot of students didn't grasp that concept...(including me)

I would go ahead and accept the subsidized loan for the spring semester too because you do not want the hassle of dealing with GSU's financial aid office.

I don't know much about unsubsidized loans so i can't speak on it

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Yeah, I've heard that I should stay far, far away from unsubsidized if I have the option, haha! I guess that, for now, I'll take out loans for spring, then use my savings for future years. I certainly won't be going out quite as much once I start taking pre-reqs.

But you're right..... anything to avoid GSU's finaid office. What a nightmare!

Thanks for the help :-)

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Bumping for more input!

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Specializes in Public Health.

ps your cap for subsidized loans for each semester is like $4500 i believe so in order to pay the full tuition amount for fall you should probably get unsubsidized loan to avoid having to get a private loan...oh god don't do that!

unsubsidized is just a govt loan with interest...just like any other loan except they don't use your credit as a factor in deciding whether or not you get a loan.

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Specializes in Complex pedi to LTC/SA & now a manager.

I believe the subsidized loan the government pays your interest while you are at least a part time student, during the grace period,(the first 6 months post graduation or separation from school), and during deferrments. In an unsubsidized federal loan your interest starts accruing from the day of disbursement. Both have a set interest rate and can be consolidated later on if needed.

PRIVATE loans are what you want to stay away from. These are loans without the protection of federal financial aid regulations, have no cap on interest rate or interest rate changes, require a credit check and possibly cosigners, the rules about payment plan adjustment & forbearance do not apply to private loans. You cannot consolidate private loans with stafford loans.

Ultimately take as little as possible as you can in loans whether subsidized or unsubsidized. The less you take out, the less you need to pay back later.

For reference: (source: http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp)

"Direct Stafford Loans include the following types of loans:

  • Direct Subsidized Loans—Direct Subsidized Loans are for students with financial need. Your school will review the results of your Free Application for Federal Student Aid (FAFSASM) and determine the amount you can borrow. You are not charged interest while you’re in school at least half-time and during grace periods and deferment periods.

  • Direct Unsubsidized Loans—You are not required to demonstrate financial need to receive a Direct Unsubsidized Loan. Like subsidized loans, your school will determine the amount you can borrow. Interest accrues (accumulates) on an unsubsidized loan from the time it’s first paid out. You can pay the interest while you are in school and during grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized (that is, added to the principal amount of your loan). If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay because you will be charged interest on a higher principal amount."

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Thanks, guys!

I'm putting an email together for my finaid department, because I'm at 122 hours right now (due to my other major) and am worried about the loan cap I keep reading about in other posts. Apparently, this happens at 160 hours for some people? I'm not sure what to ask exactly in the email, but I want to be certain that I'll be offered enough in the future. If not, I need to take out the loans now, since they won't even be offered to me after 160 hours. I'll be over 200 hours by the time I graduate with both degrees.

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