Carol asks…
When getting a USDA Direct loan, do you still have to pay for the inspection and put earnest money down?
My husband and I qualify for the direct loan. This loan comes directly from the USDA, but I am curious for those of you that have gotten a direct loan, since the loan is 102 percent of the homes value, do you have to pay for the earnest money and inspection?
Nagesh answers:
The USDA is out of money right now.
Buyers always pay for their inspections, there is no one else is going to pay for them.
Earnest money has nothing to do with USDA, it is money you offer the seller to show in good faith that you want to buy their home and they can take the home off of the market. Most sellers will not even look at offers without earnest money, you should at least offer 1,000.
Chris asks…
What does Federal Direct Loan Unsubsidized?
Some College I got accepted into is just giving me a federal direct loan-unsubsidized of $5500. So what can I do with that? How long could I take before I pay it back? Also I heard u could potientally keep all of it if u pay the tuition urself? And the $5500 is on a non-need base. So basically can anyone tell me everything I should know about this non-need base loan?
Nagesh answers:
Virtually everyone who completes and files the FAFSA–Free Application for Federal Student Aid–qualifies for a Federal Direct Loan, also sometimes listed as a Direct Stafford loan. These are in the amount of $5,500 for freshman year, $6,500 for sophomore year and $7,500 each for the junior and senior years.
“Unsubsidized” means that the loan’s interest amount (6.8% after July 1, 2012) will begin accumulating from the moment the loan is issued. “Subsidized,” the other option, means the loan’s interest is paid by the government, or deferred, until six months after graduation or when a student stops going to school. All Direct loans must begin to be repaid six months after graduation; an “unsubsidized” loan will be just a little more costly than a “subsidized” one.
“Unsubsidized” loans are generally awarded to students who’s FAFSA indicates no financial need.
Certainly, you could keep this loan and pay for your tuition by other means, but why would you? Loans have to be repaid.
Good luck.
Ken asks…
can i make payments on the principal if my direct loan is in reduced payment forbearance?
if my direct loan is in reduced payment forbearance and i make a very large payment, will the excess amount – what is left over after the accrued interest is paid off – be applied to the principal balance?
i will only be making one large payment. my very generous aunt and uncle gave me a large sum of money to be used on my student loans. i do not intend to pay large amounts every month – just one time.
Nagesh answers:
Yes but to ensure they apply it correctly, include a note to state you want the excess applied to the principal. Often times, if you have other loans that are earning interest, the Servicer will always try to apply the money to the interest first.
But don’t pay yourself out of your forbearance. Since you were approved for a reduced payment, if you pay more on a regular basis, the Servicer may notice and wonder why you were approved for a reduced payment to begin with. If you feel like you can pay more, I would not do it on a regular monthly basis because then it becomes a regular payment raising red flags. If you have one big payment you want to make, that should be fine.
Donna asks…
How do I apply for my pell grant and direct loan?
I’ve submitted my fasfa, but then it says you’re also eligible for the pell and direct loan. Will it automatically do it for me or do I have to apply??
Nagesh answers:
FAFSA will do it for you. You will receive a notice spelling out how it is divided and the amounts in each category.
Betty asks…
What is the major difference between Fed Direct Student Loans and Sallie Mae or Nelnet?
I am pursuing a graduate degree and the student loan landscape has changed quite a bit since undergrad. I had nelnet loans for undergrad and a small sallie mae loan, but it appears the dept of ed issues direct loans now? please advise because i am uncertain which is the best option and the major difference.
Nagesh answers:
Idk if this answers your question, but now a federal direct student loan is what the government is offering you, and you have to look to see if it’s unsubsidized or subsidized, because this determines your interest rates. Sallie Mae is their own funding program, and they loan options or paying monthly for your tuition based on the institution you are considering. For example if you want to pay 1000, using that program you tell them how much you want to pay, in how many months & they calculate your price and set up a program for you.
Powered by Yahoo! Answers