FAFSA vs. Private Student Loans: When do loan payments actually start?

Private student loans are completely different from federal loans you get through FAFSA. With most private loans, you typically have three repayment options: 1. Full payments immediately while in school 2. Interest-only payments while in school 3. Deferred payments until after graduation (similar to federal loans) The catch is that options 2 and 3 usually have higher interest rates. Also, private loans don't offer income-driven repayment plans or forgiveness options like federal loans do. Before going the private route, make sure you've exhausted all federal options - have you looked into Parent PLUS loans? Those have better protections than private loans.

i got privateloans last yr and the intrest is CRAZY. like 11%!! my roomate got federal and only pays like 5%. wish i just filled my fafsa out better lol

Before you commit to private loans, double-check your SAI calculation. I thought mine was final too, but it turned out there was an error in how I reported my parent's retirement contributions. After filing a correction, my SAI dropped by $4,500 and I qualified for more aid. If your SAI is correct, compare different private lenders carefully. Some offer much better terms for students with good credit or a cosigner. Sallie Mae, Discover, and SoFi have different repayment options including full deferment until 6 months after graduation (similar to federal loans), but their interest rates are usually 2-4% higher than federal loans.

I've been dealing with the FAFSA system for years now (both as a student and now helping my younger sister). Have you tried calling the Federal Student Aid office directly to see if there are other federal options before going private? Their number is hard to reach though - I was on hold for 3+ hours last week and got disconnected twice. I recently discovered a service called Claimyr (claimyr.com) that helped me finally get through to an actual person at FSA. They have a video demo showing how it works: https://youtu.be/TbC8dZQWYNQ The agent I spoke with found additional grant options I had no idea about, which meant I didn't need private loans at all. Worth checking before committing to those higher interest rates!

BE CAREFUL WITH PRIVATE LOANS!!! I signed up for one my sophomore year thinking I could defer payments like with federal loans. BIG MISTAKE!! My lender only offered interest-only payments while in school (about $75/month) or full payments right away. When I couldn't make the interest payments during a tough semester, they reported me to credit bureaus and my score TANKED. Still trying to recover 2 years later. Private loans should be your ABSOLUTE LAST RESORT. Have you applied for external scholarships? Work-study? Payment plans through your school? ANYTHING is better than private loans!

have u talked to ur schools financial aid office yet? mine helped me appeal my SAI when my dad lost his job and i got way more money. worth a try before private loans

To answer your initial question more directly - with private loans, when payments start depends entirely on the specific lender and loan terms you choose. Here's what to look for: 1. Full deferment option: No payments until 6 months after graduation (similar to federal loans) 2. Interest-only option: Only pay the interest while in school (typically $50-100/month per $10,000 borrowed) 3. Immediate repayment: Full payments start right away (usually offers lowest interest rate) 4. Fixed vs. variable interest: Variable starts lower but can increase over time Also, most private loans require a cosigner unless you have established credit and income. The better your cosigner's credit, the better your loan terms will be. As others have suggested, explore all federal options first. There's still time to appeal your SAI if you have special circumstances not reflected in your FAFSA.

i heard if u take a private loan ur not eligble for fafsa anymore is that true??

Just wanted to add one more important consideration - make sure you understand the total borrowing limits before mixing federal and private loans. Federal undergraduate loans have annual limits ($5,500-$12,500 depending on your year in school), but private loans can sometimes let you borrow up to the full cost of attendance. It's tempting to borrow more with private loans since they're often easier to get approved for larger amounts, but remember you'll have to pay it ALL back with interest. I've seen classmates get in over their heads because private lenders didn't have the same borrowing safeguards as federal loans. Also, if you do end up needing private loans, definitely shop around. Interest rates can vary by 3-4% between different lenders, which adds up to thousands over the life of the loan. Good luck with your financial aid office appointment!

One more tip that saved me thousands - if you do end up with private loans, look into autopay discounts! Most lenders offer 0.25-0.5% interest rate reductions if you set up automatic payments from your bank account. It might not sound like much, but over a 10-year repayment period, that can save you hundreds or even over a thousand dollars depending on your loan amount. Also, some private lenders offer rate reductions after you make a certain number of on-time payments (usually 12-24 months). Wells Fargo and Citizens Bank both have programs like this. Just make sure you read all the fine print before signing - some of these benefits disappear if you're ever late on a payment or need to modify your loan terms later. Hope your meeting with financial aid goes well and you can avoid private loans altogether!

As someone who went through this exact situation last year, I wanted to share what I learned the hard way. Private loans are definitely more complicated than federal ones when it comes to repayment timing. Most private lenders offer these repayment options while you're in school: - Immediate full payments (lowest interest rate but obviously hardest to manage) - Interest-only payments (usually $40-80/month per $10k borrowed) - Full deferment until after graduation (highest interest rate) The key thing everyone's mentioned but I want to emphasize - exhaust ALL federal options first! I thought I had done this, but my school's financial aid counselor found an additional $3,000 in federal aid I had missed. Also, definitely appeal your SAI if there's been any change in your family's financial situation since you filed. If you do need private loans, get quotes from at least 3-4 lenders. I was shocked at how much rates varied - from 7% to 13% for the same loan amount! And make sure any cosigner understands they're 100% responsible for the debt if something happens to you. Good luck with your financial aid appointment - hopefully you won't need private loans at all!