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Author Topic: Random Fin Aid Question  (Read 1810 times)

jbshane

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Random Fin Aid Question
« on: June 02, 2004, 10:17:55 PM »
I received my fin aid package from Hastings and I'm trying to dig my way through all of my options.

My question is this: in trying to calculate how much I will eventually pay out to my lenders once I have completely paid off my loans, I need to know how often the interest compounds on Stafford and Perkins loans.  Is it daily, weekly, monthly or annually (I'm assuming either monthly or annually)?

Anyone have any idea?

ruskiegirl

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Re: Random Fin Aid Question
« Reply #1 on: June 03, 2004, 12:39:08 AM »
I haven't had a math class since my freshman year in college.  That sounds like more math than my brain can handle.   I'm just gonna let my daddy's accountant look at the loan offers I have and give me the numbers I will actually understand.

Cherry

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Re: Random Fin Aid Question
« Reply #2 on: June 03, 2004, 01:16:33 AM »

jbshane

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Re: Random Fin Aid Question
« Reply #3 on: June 03, 2004, 10:06:02 AM »
thanks for the help cherry.  i've got all the info on interest rates, but still searching for when and how they are compounded.

anyone out there know? - i've scoured the internet and can't seem to find a thing.

jbshane

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Re: Random Fin Aid Question
« Reply #4 on: June 03, 2004, 10:07:36 AM »
I haven't had a math class since my freshman year in college.  That sounds like more math than my brain can handle.   I'm just gonna let my daddy's accountant look at the loan offers I have and give me the numbers I will actually understand.

some of us don't have this luxury...

jgruber

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Re: Random Fin Aid Question
« Reply #5 on: June 03, 2004, 10:08:42 AM »
Random Fin Aid Answer:  Maybe

Cherry

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Re: Random Fin Aid Question
« Reply #6 on: June 03, 2004, 10:19:26 AM »
I got really curious about this myself since you brought up the question.  I too feel like I have looked up down and sideways on the Internet, I hate to say this but you may need to just call the department of education directly.

Sorry I could be more helpful.

P.S. When you do find out could you post it, I am darn curious myself.

jgruber

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Re: Random Fin Aid Question
« Reply #7 on: June 03, 2004, 10:22:20 AM »
This not certain, but I believe it is monthly.  You can ask a bank that handles those loans.  They could tell you.

Also keep in mind that they get to charge various fees and the last time I looked they get  some of the interest up front.  Frankly, I think these loans are more gravy for banks than help for students.  This is coming from a father who has paid off five PLUS loans.


I received my fin aid package from Hastings and I'm trying to dig my way through all of my options.

My question is this: in trying to calculate how much I will eventually pay out to my lenders once I have completely paid off my loans, I need to know how often the interest compounds on Stafford and Perkins loans.  Is it daily, weekly, monthly or annually (I'm assuming either monthly or annually)?

Anyone have any idea?

jbshane

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Re: Random Fin Aid Question
« Reply #8 on: June 03, 2004, 10:33:19 AM »
cherry - i'll be sure to post if/when i found out.  i was on the phone with both bank of america and citibank last night, and i forgot to ask this question.  by the time i remembered, their customer service line was closed for the night.

jeffjoe - i think you're right that it's monthly, but i just need to confirm.  you're also right about these loans being great for the banks - they wouldn't do it if they didn't make money off of it.  unfortunately, i have no other route to go, because working during the school year is, plain and simple, not an option for me.  i guess the best thing i can do is work to pay them off as quickly as possible, so as to give the bank as little extra money as possible...

jbshane

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Re: Random Fin Aid Question
« Reply #9 on: June 03, 2004, 10:34:55 AM »
one more thing - i know that bank of america charges a 3% origination fee up front, but not sure what citibank charges.