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Financing a 5th Year - How do Stafford loans work and other fun questions!

how does the stafford loan work

thesituati0n Posts: 28 Registered User New Member

I'm currently entering my senior year. I'm now anticipating a super senior year due to a late major change. I have not had to take out any loans thus far due to my school's generous financial aid. However, my school expects all students to take out loans once they make it past the fourth year. So, a few questions:

1) Your Pell grant amount/eligibility does not change in the fifth year, correct?


Replies to: Financing a 5th Year - How do Stafford loans work and other fun questions!

Thanks for the input!

Additional questions:

For the Parent Plus loan, my parents can sign for loans that cover the entire cost of attendance or is there a limit depending on my parent's income?

Interest does not start accruing

on the unsubsidized Stafford loan, until 6 months after I graduate? Is that right?

What about for a Parent Plus loan? Do they immediately start charging interest on that the moment they disburse it to you or do they wait until after you graduate?

Also, I do not think I'm receiving any state aid, unless grants provided by my public university count as state aid, in which case I was planning on that not being a source for my fifth year.

I'm 99% sure that my financial package only consists of: 1) Pell grants, 2) institutional grants provided by my college, and 3) scholarships I got when I graduated high school. Financial aid sources 2+3 are no longer going to be provided once I enter my fifth year, so I'm going to have to take out loans to cover the gap.

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