John asks…
Do I really have to fill out a Direct Loan Exit Interview?
Hi, I used to go to Long Island University Brooklyn Campus and I took out Direct Loans but then I transferred out to CUNY City Tech. Now LIU wants me to fill out an exit interview which means I’d have to start repaying my loans. How can this be when I’m STILL in school?
Nagesh answers:
First dont panic. You dont have to pay back the loans if you will be attending elsewhere. It is common practice that if you leave a school for any reason, even if you go to another one, to complete an exit interview. LIUB is just following regs since you will no longer will be attending there. They really dont know where or what you will be doing. So complete the form and send it where they want to you. The direct loan program will see you are attending the new school and you will retain your deferment status. Trust me you will be fine.
Sandy asks…
Can I get a Federal Direct Loan or a Federal Stafford Loan if I have a credit Card?
I am 18 years old. I have a job, but would like to get a credit card in case there is an emergency with my car. Is it possible for me in the state of New Jersey to get a federal direct loan or a federal Stafford loan for college if I have credit card debt? I herd somewhere its impossible, but cant find anything. Please post where you got your information. Thank you!
Nagesh answers:
Federal loans are not credit based so it doesn’t matter if you have a credit card or not. Bad credit, no credit, or amazing credit – all are fine for federal loans.
Avoid credit cards in college unless you have a job and are able to pay the card off each month. Bad credit is very quick to get, and very hard to get over.
Daniel asks…
How exactly do Parent Direct Plus Loans work?
I am planning on taking out a $2,200 loan for summer school. How does the interest work? The interest rate is 7.9%. Does the 7.9% affect only the $2,200 loan or the total sum? I plan on taking out a Stafford loan in the Fall Quarter in order to pay off the Direct Loan because I am worried about the accruing interest. Help?
Nagesh answers:
Whoa, wait a minute.
Are you the parent or the student? A parent plus loan is when a PARENT takes out a loan for the student. Not the student takes out a loan for themselves from the parent.
If you are the student, you have to talk to your parents or legal guadian to see if they are willing to take out a loan to pay for you education. Those are some of the higher interest rates, and you should take out a stafford loan in your name to save your parents money.
Lisa asks…
Can I pay my FAFSA direct loan while I am at school?
Is it true that once you start paying your fafsa direct loan while you are at school, you have to keep making payments? Or can you pay certain amount of money when you get some? Lets say I have 5000 loan dept and i am a third year student. By chance I managed to make 3000. Can I go head and pay the 3000 to my dept? Or if i start paying back my loan, i have to keep it up untill i am done.
Nagesh answers:
Maybe this will help….
Chris asks…
What happens when you only use a portion of a subsidized direct student loan?
Ok so i got a subsidized direct loan for 1750 but I am only using 918 of it toward the rest of my tuition and fees I already paid for my books prior to getting the financial aid. What happens to the remainder of the loan? Do i get that money back or is it paid back to the loan?
Nagesh answers:
You keep it
its in your best interest to ALWAYS borrow the max you can borrow, especially subsidized since its free money until the interest/payments start (6 months after you graduate)
so if you have ANY debt, take out AS MUCH subsidized (and even unsubbed since its only 6%) as you can and refinance your other debt with it
if you dont have any other debt, keep the interest free subsidized money in a CD account and earn interest on it until it starts accruing interest (when you graduate) and pay it back, keeping the interest you earned
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