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$20,000 Financial Aid Hole

Tetris

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$20,000 Financial Aid Hole
« on: March 05, 2008, 12:19:31 PM »
Financial Aid Question (hopefully some of you current students can help me out here)

I got my award today and with grants and federal stafford loans I still have $20,000 missing. It looks like I'll have to take out an alternative loan or make the money myself. I assume this is normal-- what do students usually do? Do they take out the Federal Grad PLUS loan? It looks like the easiest to qualify-- only qualification is no default. Will this cover the other $20,000? If not what is the recommended course of action? What do people usually do to make up this money?

(I cross posted this in the Michigan thread but the traffic is lower than the general 1L board so I'm reposting it in a new thread)

Re: $20,000 Financial Aid Hole
« Reply #1 on: March 05, 2008, 04:01:29 PM »
Financial Aid Question (hopefully some of you current students can help me out here)

I got my award today and with grants and federal stafford loans I still have $20,000 missing. It looks like I'll have to take out an alternative loan or make the money myself. I assume this is normal-- what do students usually do? Do they take out the Federal Grad PLUS loan? It looks like the easiest to qualify-- only qualification is no default. Will this cover the other $20,000? If not what is the recommended course of action? What do people usually do to make up this money?

(I cross posted this in the Michigan thread but the traffic is lower than the general 1L board so I'm reposting it in a new thread)

ya...i think for 1L i was supposed to take out 26k in private loans, 13k per semester.  but it worked out that CLS gave me extra money from other sources so I only needed 13K.

but generally, you will take out private loans to make up the difference

zardoz

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Re: $20,000 Financial Aid Hole
« Reply #2 on: March 05, 2008, 05:22:56 PM »
Yeah, typically you are stuck with covering the difference in whatever way you want.  Ask the financial aid office at the school though because they may have some ideas for you (or preferred lenders).

One of the nice things about the GradPLUS loans is that you can consolidate them with your Stafford loans so that you only have one payment.  So, at least if you have to do it, you are not stuck with lots of payments to remember. 

Re: $20,000 Financial Aid Hole
« Reply #3 on: March 05, 2008, 06:05:36 PM »
From what I've gathered, most schools will recommend the gradPLUS loan over any private loans (that should especially hold true now). Apparently, there is also no limit as to how much the gradPLUS will cover, thus enabling students to avoid private lenders altogether.

Tetris

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Re: $20,000 Financial Aid Hole
« Reply #4 on: March 05, 2008, 06:35:42 PM »
Will gradplus really cover anyone as long as they haven't defaulted on a loan?? That will be such a HUGE relief for me since I won't have to worry about my sub-700 credit score.

Re: $20,000 Financial Aid Hole
« Reply #5 on: March 05, 2008, 06:53:35 PM »
If I go to BU, I will become very familiar with Grad PLUS loans (100K+ familiar).

Tulane on the other hand, I'll only be dealing with the Stafford & Perkins firm (whom I still owe for services rendered).


Hopefully I'll hear back from the rest of my schools soon.

Re: $20,000 Financial Aid Hole
« Reply #6 on: March 06, 2008, 07:45:30 AM »
Will gradplus really cover anyone as long as they haven't defaulted on a loan?? That will be such a HUGE relief for me since I won't have to worry about my sub-700 credit score.

I think default is the only critical factor. The interest rate may vary depending on your credit history (that's history, not score).

rtqw

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Re: $20,000 Financial Aid Hole
« Reply #7 on: March 06, 2008, 10:11:52 AM »
The interest rate may vary depending on your credit history (that's history, not score).

For GradPLUS, I don't think that is the case.

Re: $20,000 Financial Aid Hole
« Reply #8 on: March 06, 2008, 11:17:07 AM »
The interest rate may vary depending on your credit history (that's history, not score).

For GradPLUS, I don't think that is the case.

http://www.gradloans.com/graduate-plus-loan/