<p>D's school treats summer 2011 programs as an extension of the 2010-11 school year, but the costs can't be submitted until the program is finalized somewhere between Nov. and Feb. (this is a study-abroad program required for her degree.)</p>
<p>In addition to a merit scholarship (which won't be increased), D qualifies for a little bit of subsidized Stafford loan (aournd $1200) worth without the expense of the summer program. Any remaining loan amount is unsubsidized.</p>
<p>Since her need will go up when she files her summer program, can the school adjust her loan so that more of it is subsidized, even though part of the loan has already been disbursed? (She's not close to qualifying for Pell or any of the other federal grant programs.)</p>
<p>I guess this question might also apply to students whose need changes mid-year due to unexpected medical expenses or job losses.</p>
<p>Are there any specific steps we need to take or not take to optimize the subsidized portion?</p>
<p>Different schools handle summer session differently. Where I work, summer 11 is part of the 10-11 award year. Students can only borrow the maximum sub/unsub mix for their grade level … 5500 freshman, 6500 sophomore, 7500 junior/senior. If the student has already borrowed the max during the year, there is no remaining eligibility for summer. If the max has not yet been borrowed, we have a summer COA (budget) & award for the summer term. Budgets are not published until March, so summer packaging cannot be done before that.</p>
<p>I think what you’re asking is if the unsub loan can be changed to a sub loan once her summer budget is calculated, right? It would seem that if she has not already borrowed her full Stafford amount that this would be true…but having just been through a hair-tearing summer aid season with my D and her school (successfully resolved with a little encouragement and info from kelsmom, btw), I would definitely find someone in the FA office who deals with Stafford loans and pose the question directly. For some reason, summer aid seems to be a whole 'nother kettle of fish at some schools!</p>
<p>Would it make sense then to not take the unsubsidized Stafford part offered for Winter semester on the expectation that when they calculate the summer budget that she would then be eligible to use her remaining Stafford eligibility for the year as a subsidized loan?</p>