School loans or regular loans?

F

FluerVanderloo

New Member
I'm going to the University of Maryland, Baltimore County this fall, and I got information about how much my parents and I can take out for loans. Theirs runs on two separate systems, where I take out and they take out. The offer a variable interest rate with a cap at 9% until after I graduate.

What I'm unsure of is if I should take out a loan through the school, or just have it all come out of one place, one loan from a bank or something. Anyone savvy with this college crap?
 
Here student loans through the government are the best...but they also don't charge interest until graduation...so...unless you have something like that available I'm not much help...sorry...
 
There are subsidized and unsubsidized student loans. Get what you can subsidized. What that means is that the govt will pay the interest on those loans until you graduate, or until you don't attend school for a six month period. at that point the interest starts and you are expected to start making payments. I believe most banks can issue either of these, so you don't have to go through the school. Actually, going through the school can cost you in some cases, as they take handling fees and such, however, schools usually require you to pay up front, unless you have the loans through them. That isn't a problem if you've got a good bank that will issue you checks the day you need them, but if they need proof you're attending first, it's up to the bank.

edit: unsubsidized loans means that the interest accumulates while you are in school. Not that you have to start paying them back, but interest can add a few thousand to the amount you owe by the time you get out of school.
 
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