Pearl Said:

Does the ARMY's College Loan Repayment Program cover federal parent PLUS if the employee is the beneficiary?

We Answered:

According to this article, they do.

http://usmilitary.about.com/cs/joiningup…

Keep in mind that when the loans are cancelled, the amount cancelled is income to you. If your tax bracket is 25%, you will pay 25% of the total in taxes (still a really good deal).

Chad Said:

Can I get a private loan to pay for one college and federal loans to pay for another?

We Answered:

Yes! You can only get federal funding for one school at a time. How you pay for the other one is totally up to you. I pay for one class a semester with cash and two in the summer, but I am just gathering gen eds. To get a whole separate degree having a private loan to pay for it is just fine.

Nellie Said:

What is an unsubsidized federal loan for a college student?

We Answered:

Virtually all students enrolled at least half-time may borrow a Federal Stafford or Direct Loan. The Stafford/Direct and PLUS Loan programs are by far the largest of all the aid programs, making up over 55% of the total $90 billion annual aid portfolio. There are two different versions of the Stafford/Direct Loan: subsidized and unsubsidized. If you borrow, you will want to try to obtain the subsidized Stafford Loan, if possible though it is based on your demonstrated financial need.


A subsidized Stafford Loan means there are no payments required until six months after the student ceases to be at least a half-time student though there are no pre-payment penalties on any federal loan. The federal government pays the interest as long as the student is in school at least "half-time" (usually six units per term for undergraduates and four units for graduate students). Interest does not accrue and payments do not begin until a six-month "grace" period transpires after the student leaves school. In order to qualify for a subsidized Stafford Loan, you must demonstrate financial need for the funds by filing the FAFSA application each year.

Patricia Said:

Is consolidating federal college loans a good idea?

We Answered:

you have a 1 time shot at this. yes in most cases if you still send the $80 saved every month you can retire the same debt years sooner

Maurice Said:

I recieved a lot of grants and federal loan for college and my parents file me as their dependent?

We Answered:

federal loan has no effect on your parents taxes. What will affect it would be the grant. What your parents accountant will do will compare the tuition cost to the grant amount. If the tuition cost is more than the grant than you will have education expenses which your parents could potentially deduct (depending on income leve) on their tax return as Hope Credit (first two years of college for you) or Tuition and Fees Deduction, or if you're beyond first two years of college it would be Lifetime Learning Credit instead of Hope Credit.

$1,000 per child tax credit ends the year the child turns 17.

Sara Said:

When applying for a federal loan for college is there a limit on how much one can borrow?

We Answered:

Yes, there is a limit on each "type" of loan depending on your grade level and dependency status.

Federal Stafford loans have a max of 5,500 for dependent freshman.

IF you qualify for a Perkins loan ( you have to have a very low EFC to get this one), you can get more than the 5,500 (in Stafford) if your schools cost of attendance is more.

Your parents can borrow more for you as well... again up to the Cost-of-Attendance of your school.

Look at the table on page 21 for a really good breakdown of limits for both dependent and independent students.... as you can see, independent students have a higher loan limit for Stafford loans.