Financial Aid Question

[dimab85]

Just got the financial aid package and im trying to figure all this stuff out, maybe you guys can help...

1.On the Stafford Loan application, line #8, I chose citibank, do I have to make any arrangement with them to recieve the loan? or do I just pick the lender and AUC will take care of the rest

2.Promissary note addendum, it say the max is 20,500...is that for a semester or for the whole year.

If thats the amount for the whole year, where should the rest of my loan come from?

Thanks guys

[georgelucas45]

1) I think the school takes care of it. I think you're supposed to send it the the financial aid office so they can verify your loan amount, then they send it off to citibank who should take care of the rest.

2) The $20,500 is a Stafford loan for two semesters. Obviously this will not cover everything you need. This is where the private loans come in. Pretty much your only choices are Sallie Mae or Citibank. So yea, every two semesters you're going to need to reapply for all this loan money.

[dimab85]

thanks for the answer

[dimab85]

Is the gradplus loan the private loan?

So if I get the 20,500 from the stafford, Id have to borrow the other ~$40,000 from the gradplus?

[gtownrds91]

gradplus is still a government loan, but thats what most people use...stafford, then gradplus, then if you need even more, private loans.

[HopefulMD21]

Is the gradplus loan the private loan?

So if I get the 20,500 from the stafford, Id have to borrow the other ~$40,000 from the gradplus?

That is correct.

[fortima]

sallie mae and citibank are not the only choices, there is wachovia, bank of america, nelnet...etc

Research it online (incentives offered?), one student's lender may not be the lender for you. Make sure you have the correct lender code in the paperwork and AUC should do the rest. As long as the lender will agree to work with AUC your set.

[dimab85]

So for the Grad Plus loan, when are we supposed to pay it back?

[SchoonerJay]

As I understand it (and I'm no expert) you might have to begin repaying GradPLUS loans immediately upon disbursement, although you can ask the lender to defer your payments to post-graduation.

Above posters are correct in that the lender you chose should be the one that offers you the best incentives. The financial aid folks at MEAS have been wonderful to me and I'm sure they'd be your best resource for financial aid questions and wading through all the paperwork. Good luck!

[HopefulMD21]

As I understand it (and I'm no expert) you might have to begin repaying GradPLUS loans immediately upon disbursement, although you can ask the lender to defer your payments to post-graduation.

Above posters are correct in that the lender you chose should be the one that offers you the best incentives. The financial aid folks at MEAS have been wonderful to me and I'm sure they'd be your best resource for financial aid questions and wading through all the paperwork. Good luck!

The way I understand it is that Grad PLUS must be paid back after the final disbursement has been made. However, for people continuing in school, repayment can be deferred until graduation. This is in contrast to a six month grace period following graduation before repayment of the Stafford loans must begin.

[DRDRWMD]

sallie mae and citibank are not the only choices, there is wachovia, bank of america, nelnet...etc

Research it online (incentives offered?), one student's lender may not be the lender for you. Make sure you have the correct lender code in the paperwork and AUC should do the rest. As long as the lender will agree to work with AUC your set.

I learned today that Wells Fargo is not approved for AUC student loans for either stafford or plus loans. back to the drawing board on next semester's loans.