I'm going to be starting grad school in the next year and have no experience with the student loans I'll probably end up taking out. I've searched for details via several student loan websites, and perhaps no one mentions it because it's taken for granted that interest accumulates immediately, but are there any loans available that begin accruing their interest after the student graduates school? Or is this "pay six months after you graduate" just a phenomenon with when the required payments begin? If there are loans that do not accrue interest during school, do they have fines for early payment?

Thanks for your help answering (probably obvious) questions for a student-loan newbie!

Many student loans, especially private student loans, start accumulating interest as soon as you take them out.

If you want to get a student loan that you don't have to pay interest for then you should apply for a Federal Perkins Loan or a Subsidized Stafford Loan, which are both federal government student loans.

Here are the steps you need to take to get them:

1) Fill out the FAFSA. This will determine if you are eligible for financial aid. Go here:

http://www.fafsa.ed.gov/

2) The best loan to get is a Federal Perkins Loan. These have low interest rates and the government will help you pay it back as long as you stay enrolled in school. You also don't need a cosigner or good credit for it. For more info go here:

http://www.studentfinancedomain.com/student_loans/perkins_student_loans.aspx

3) The next best loan to get is a Subsidized Stafford Loan. This has many of the same benefits as a Perkins Loan. Learn more here:

http://www.studentfinancedomain.com/student_loans/subsidized_stafford_loan.aspx

Also, have you thought of grants or scholarships? These are free money that you don't have to pay back. Here are some good sites to check out:

http://www.fedmoney.org/

http://apps.collegeboard.com/cbsearch_ss/welcome.jsp

http://www.freegovmoney.net/

http://www.educationplanner.com/education_planner/paying_article.asp?sponsor=2859&articleName=Grants_and_Scholarships

http://www.studentawards.com/

http://www.college-scholarships.com/

Good luck!

3 Responses

1. hillbilly Says:
   December 29th, 2008 at 1:09 am

   Colleges usually have a "Student Affairs" type office and maybe could answer your questions. Good luck.
   References :

2. ndnquah Says:
   December 29th, 2008 at 1:55 am

   I took out a student loan in 1990 for a little over $3,000, and it now is $18,000. The interest and penalties are very high. Check into it first. The school I went to left in the middle of the night and was not an accredited school.
   References :

3. recentgradtrish Says:
   December 29th, 2008 at 2:39 am

   Many student loans, especially private student loans, start accumulating interest as soon as you take them out.

   If you want to get a student loan that you don't have to pay interest for then you should apply for a Federal Perkins Loan or a Subsidized Stafford Loan, which are both federal government student loans.

   Here are the steps you need to take to get them:

   1) Fill out the FAFSA. This will determine if you are eligible for financial aid. Go here:
   http://www.fafsa.ed.gov/

   2) The best loan to get is a Federal Perkins Loan. These have low interest rates and the government will help you pay it back as long as you stay enrolled in school. You also don't need a cosigner or good credit for it. For more info go here:
   http://www.studentfinancedomain.com/student_loans/perkins_student_loans.aspx

   3) The next best loan to get is a Subsidized Stafford Loan. This has many of the same benefits as a Perkins Loan. Learn more here:
   http://www.studentfinancedomain.com/student_loans/subsidized_stafford_loan.aspx

   Also, have you thought of grants or scholarships? These are free money that you don't have to pay back. Here are some good sites to check out:
   http://www.fedmoney.org/
   http://apps.collegeboard.com/cbsearch_ss/welcome.jsp
   http://www.freegovmoney.net/
   http://www.educationplanner.com/education_planner/paying_article.asp?sponsor=2859&articleName=Grants_and_Scholarships
   http://www.studentawards.com/
   http://www.college-scholarships.com/

   Good luck!
   References :
   http://www.studentfinancedomain.com

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