Answers:
If you borrow $3,500, you lose 1.5%, or $52.50 due to the origination fee, leaving you with $3,447.50
You repay the full $3,500 at 6.8% (or whatever the interest rate is due to the formula used to establish the interest rate). Your repayment period begins 6 months after you complete any form of education - bachelor's, graduate, post-graduate. You need to obtain a waiver indicating that you've continued your education to maintain the deferment status. Since your loan is subsidized, US Government / Sallie Mae pays the interest for you.
First year level Stafford loan in $3500 ( as you already know). Repayment begins 6 months after you graduate, withdraw, or drop below half time status. There are many lender that now pay the origination fee for you ( this is one of there borrower benefits. Sallie Mae is not the federal government, but a lender, who is making money off your student loans. I searching for a lender for your loan, I would try to find one that pays your origination fee ( meaning, you borrow $3500, $3500 get applied to your tuition).
When you go into repayment , interest will start to accrue, so you will end up owing more than he $3500 ( unless you pay the loan in full before you go into repayment).
The 6.8% interest rate if for the life of your loan unless you consoldate your loans at time of repayment and lock in a different interest rate or you take advatage of your back end ( at the end of the loan) benifits. Alot of lenders offer interest rate reductions after makng a cetain number of payments or making automatic payments. I would try Citizens Bank or EdAmerica. They currently pay origination fees for loasn for the 0708 aid year.
Wth a sub stafford there is no interest. It is with unsub you collect interest on top of your loan amount.
Contact your financial aid office to determine which lenders are paying all fees. The majority due because of competition. The currently interest is fixed at 6.8% as mentioned early. When you go into repayment you will pay your original loan amount plus interest. You should be able to get a repayment chart from your school or online.
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