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Originally Posted by Bizzymammabee  No Financial Aid are govt grants to pay for school. The amount you can qualify for is dependent on your income. You don't have to repay that. You are thinking about Subsidized and Unsubsidized Student Loans. Those are guaranteed by the govt and with subsidized you don't accrue interest until you graduate. There is a cap to that amount. Once you hit the cap you venture into the unsubsidized loans, which the minute you take the loan the interest starts accruing. |
This is why I say every scenario is different. My kids qualify for NO grants due to our income. Financial Aid is not always a gov't grant. Financial Aid is a big picture term of the whole financial process of going to school. Loans are repaid, grants are not, scholarships are not. The only way my kids could get an education is if we (parents) pay for it or if they (student) pays for it. Due to our income, they figure their "need base" partially as their responsibility to repay, but mostly by our income. Therefore, each one of them qualified for both subsidized and unsubsidized loans right from the start. The unsubsidized loan portions do accrue interest right from the beginning. I am paying it quarterly for my daughters on their loan portions so when they get out of college they are not also repaying their interest accrued.