Should I accept federal loans with interest if I didn't qualify for FAFSA grants?
Just got my financial aid package and I'm really disappointed - no Pell Grant or anything I don't have to pay back. My SAI came in higher than expected even though we're definitely not rich. They're offering me Direct Subsidized and Unsubsidized loans, but I'm nervous about taking on debt. My parents can't help much financially, and I need about $13,500 per semester to cover tuition and housing. Is it worth accepting these federal loans? Or should I just work full-time and take fewer classes each semester? Are there downsides to rejecting the loans now but maybe accepting them later? So stressed about this decision!
13 comments
Join the conversation
StormChaser
if u dont take the subsidized loans ur making a huge mistake. subsidized = govt pays interest while ur in school. unsubsidized starts accumulating interest immediately. take the subsidized 100%. the unsubsidized is ur call but fed loans have wayyyy better terms than private
0 coins
Sofia Gomez
•That helps to know about the subsidized ones! Do most students end up taking both types? How much is too much loan debt?
0 coins
Dmitry Petrov
Federal student loans are generally a better option than private loans or credit cards, especially the subsidized ones. The interest rates are fixed (currently 5.5% for undergrads), you get income-driven repayment options after graduation, loan forgiveness possibilities, and deferment options during hardship. Consider your expected salary in your chosen field - the old rule was to not borrow more than your expected first-year salary TOTAL for your entire degree. Have you appealed your financial aid decision? Sometimes you can get more aid if you explain special circumstances.
0 coins
Ava Williams
•Gotta disagree somewhat. While federal loans are better than private, they're still DEBT. I graduated with $47,000 in "good" federal loans and I'm drowning six years later. That income-based repayment sounds great until you realize you're not touching the principal AT ALL. My balance is now $52,300 despite paying $320 EVERY MONTH for years!!!!!
0 coins
Miguel Castro
When I was in your spot, I took the subsidized loans only and worked part time. Then sophomore year I needed the unsubsidized too because rent went up. Dont feel bad, almost everyone has loans. Just be smart about how much u take.
0 coins
Zainab Ibrahim
One thing to consider is appealing your financial aid package before making loan decisions. My daughter's SAI was calculated incorrectly because of a one-time retirement account withdrawal that made our income look artificially high. We submitted an appeal letter with documentation, and they adjusted her aid package significantly, reducing the loan amount needed. Different schools have different appeal processes, but it's worth exploring before committing to loans.
0 coins
Sofia Gomez
•I didn't know appealing was even an option! Who do I contact about that - the financial aid office directly? My parents did have some unusual medical expenses this year that weren't factored in.
0 coins
Zainab Ibrahim
•Yes, contact your school's financial aid office directly! Medical expenses are exactly the kind of special circumstance that can justify an appeal. Ask specifically about their "professional judgment" or "special circumstances" process. Bring documentation of those medical expenses. The worst they can say is no, but many schools have discretionary funds they can allocate after the initial packages go out.
0 coins
Connor O'Neill
I've been trying to call the Federal Student Aid helpline for WEEKS to ask about appealing my SAI and other loan questions!! Always busy or disconnected after waiting forever. So frustrating when you're trying to make such important financial decisions!!! Anyone know how to actually get through to a real person there?
0 coins
LunarEclipse
•I was in the same boat last month - so many disconnected calls! I finally used a service called Claimyr that got me through to an actual FSA agent in about 20 minutes instead of hours. They basically hold your place in line and call you when they get an agent. Super helpful for sorting out my loan questions. Their website is claimyr.com and they have a video showing how it works: https://youtu.be/TbC8dZQWYNQ. Made a huge difference in getting my loan questions answered before I had to make decisions.
0 coins
Yara Khalil
i took out both types of loans and honestly its fine. yeah interest sucks but my brother didnt take loans and took 6 years to graduate cause he was working so much. i graduated in 4 years and started making real $ faster. ended up better off financially even with the loans
0 coins
Dmitry Petrov
One more consideration: if you're planning to work in public service (government, non-profits, teaching, etc.), you might qualify for Public Service Loan Forgiveness after 10 years of payments. This can make federal loans an even better option. Also, look into whether your school offers any payment plans that might reduce how much you need to borrow each semester. Some schools let you spread payments over the term instead of paying all at once, which can help if you're working part-time.
0 coins
Sofia Gomez
•Thank you! I actually am considering teaching after graduation, so that's really good to know about the loan forgiveness. I'll definitely look into the payment plans too.
0 coins