<p>Can I choose to accept a subsidized loan offered to me in my financial aid package but later decide not to use that loan as a way to pay? I've been offered a moderate sum in terms of a subsidized loan. I plan to work while in college and would really prefer to take out as little loans as possible as a way to pay, but should it happen to be that I can not make enough money to pay the full amount, I want to have the subsidized load to fall back on. In other words can I accept the load but later decide that I don't want to borrow any money from it?</p>
<p>The Federal government pays the interest on the subsidized loan while you are at least half-time student. So accept the loan now; and if you have enough money later on the year, you can always repay the loan. You don’t have to wait after graduation to start paying.</p>
<p>You can also wait until you need it to accept it. There is no reason to take it out until if & when you need it. Even though your school might say you have to accept it now, you really do not have to accept early for Direct Loans … that applies more to funds that can be redistributed if you turn them down, like Perkins Loans, SEOG, work study, and institutional grants. As long as you accept the loan, do the Master Promissory Note, and complete entrance counseling while you are still enrolled in classes at least half time, you will be able to get the loan later if you need it. Of course, if it’s a subsidized loan, there is no interest while you are still in school … so you could take it out & repay if you don’t need it.</p>