<p>Lets say this is the amount of money you get:</p>
<p>Cal Grant: 10,302
Pell Grant: 5,500</p>
<p>Doesn't the blue and gold opportunity cover the system wide fees, which is usually 11,000. So why take out loans when some housing only cost 5,000 a academic school year. Plus books can be purchased online for really cheap. Id on't really get why people need to take out loans.</p>
<p>I think you mean Subsidized Stafford Loan, not Pell Grant.</p>
<p>Blue and Gold covers systemwide tuition, roughly $11k. UC knows that there are other expenses involved, including room and board, transportation, etc, so they account for that and provide you a way to finance it.</p>
<p>I could be wrong, but as I understand it a subsidized loan doesn’t cost to anything while you’re a student. So if you take out the $5,500 and don’t spend it, you could pay back the exact same $5,500 after you graduate. It would just be a nice, free buffer for unexpected expenses.</p>
<p>Your larger question is “Why take out loans you don’t really need?” I agree: that’s dumb, unless it’s free money for emergencies only (like above). Thats why you’re able to decline loans.</p>
<p>I’m trying to figure out if you really need the full $30,000. My CC says cost of attendance there is $10,000 and I never spend more than $200 a semester (I do have a fee waiver). But I usually know where to get my books for like $20 and my car is half full with $20, etc. I’m not a heavy spender and I’m quite frugal. I understand needing money to pay enrollment fees, dorms, etc. But all that other stuff added on is usually unnecessary since I never spend that much.</p>
<p>I have no idea if I should get the loans or not. Are you allowed to get them half-way through the semester?</p>
<p>If you’re more than enough to cover the firm expenses (tuition, and room and board) with grants alone, I’d take only the subsidized loans. You have nothing to lose.</p>
<p>
There are fees associated with direct loans, subsidized or unsubsidized. I believe origination fees have been phased out, but you would still have to pay a default fee of 1% which is taken from the disbursal amount rather than charged up-front. So if you take out a $2,000 direct loan, whether subsidized or unsubsidized, you will actually receive $1,980 after the 1% fee is deducted. Though it seems like this doesn’t cost you any money, the principal owed on your loan will still be $2,000. So if you paid back exactly what you received you would still be $20 short. Still a heck of a good deal either way, but there’s no reason to borrow more than you think you will spend, plus a little room for error.
At most schools, the answer is yesyou can choose to take out a direct loan at any time during the school year. I can’t say it’s true of every school because it’s the school’s right to make their own deadlines, but the direct loan program allows it in general, and I haven’t come across a school yet that doesn’t allow it. It’s also something incredibly simple to checkjust call up the school’s financial aid office and ask if there is a deadline for taking out a direct loan during the school year.</p>
<p>“Cost of Attendance” is only an estimate. The “cost” (estimated) of room and board will change depending on whether you’re living on-campus, off-campus staying with your parents, or off-campus not staying with your parents (this is something you reported on the FAFSA, and if it changes, you should submit FAFSA corrections or tell your financial aid office directly). Some people will spend more than the estimate and some people will spend less. It’s a very good idea to make a budget of your own and use that to decide whether to take out loans at the beginning of the semester, and if so, how much to take. The financial aid office should be able to give you some guidance in creating your budget, and don’t worry about losing any financial aid if you tell them you’re planning to spend less than their estimate. They’ll just say, good for you!</p>
<p>I’m not sure if I should take out a loan, like 5K. I’ll receive Blue + Gold, Pell grants, and scholarships, and depending on how much my housing costs that should be enough? If I do take out a loan which one would be best, Subsidized stafford loan?</p>
<p>If you qualify for a Perkins loan, that’s usually the best choice because you don’t have to pay the fees and your grace period after graduation is 9 months (vs. 6 months for Stafford). Otherwise, subsidized Stafford is the way to go. If you’re not sure, call your financial aid office and find out if there’s a deadline for taking the loan. You can probably wait on this until you know more about your expenses, but make sure you call to find out about any deadlines first.</p>
<p>I was wondering how blue and gold works if I am from out of state so I dont get the cal grant, yet I have gained residency</p>
<p>As long as you satisfy the requirements for residency for tuition purposes at UC, you qualify for blue and gold just like anyone else. You don’t need to qualify for a CAL Grant.</p>
<p>Bartoli - how long have you lived here?</p>
<p>thanks bakemaster, I will look into the perkins loan.
=)</p>
<p>You’ll either see the Perkins in your award package, or you won’t. If you don’t see it, either you don’t qualify or the institution doesn’t participate in the Perkins Loan Program.</p>