<p>So, recently my FA package was updated and I'm not really sure everything that changed (I no longer have Parent Plus loans like I used to BUT my parents never applied for one so it's not as though they applied and were denied), but my U is now giving me $6314 in Stafford subsidized loans and $1607 in unsub ($7921 total, over the $7500 max for a senior) with the option of taking out another $421 in additional Stafford loans as long as I am counselled as to the effect that would have on my future loans. </p>
<p>My FA package for fall is:
FED College Work Study $1,500.00<br>
FED Direct Subsidized Ln $2,564.00<br>
FED Direct Unsub Loan $1,607.00<br>
FED Pell Grant $2,775.00
FED Perkins Loan $390.00<br>
Student Aid Grant $2,900.00
FED Supp Ed Opp Grant $175.00<br>
TOTAL $11,911.00</p>
<p>Spring:
Additional Student Loan $421.00
FED College Work Study $1,500.00
FED Direct Subsidized Ln $3,750.00
FED Pell Grant $2,775.00
FED Perkins Loan $390.00
Student Aid Grant $2,900.00
FED Supp Ed Opp Grant $175.00
TOTAL $11,911.00 </p>
<p>I am a dependent third year, but a senior. My first year I took out $4643 in subsidized loans (started as a sophomore, finished the year as a junior), my second year I took out $5580 in subsidized loans (started the year as a junior, finished as a senior). Is it because I haven't taken out my maximum loans during the last few years that they are giving me more than the maximum Stafford loans?</p>
<p>And yes, I know it says "Direct Subsidized Loan" but it is the Stafford loans. When you go to accept them, they are called the Stafford loans and when you click on the link for more info it takes you here: Stafford</a> Loan | Office of Financial Aid | Michigan State University . For my "additional loan" it takes you here: Additional</a> Loan Eligibility| Office of Financial Aid | Michigan State University . </p>
<p>I'm just a little confused and looking for some clarification :). It just updated on Saturday so the FA office hasn't been open for me to call them.</p>
<p>
They are the same thing. It used to be that you get them either as a direct loan through the school or a Stafford from an outside lender (for schools that did not participate in the direct loan program). Now they are all direct loans as all schools are required to do them that way. But the names are interchangeable.</p>
<p>As to your question. I did not think you could get more than the maximum for a year. I am surprised to see that, its the first time I have heard of it. I would be curious to see the outcome.</p>
<p>The link about the additional eligibility seems to me to refer to the additional eligibility you get if your status changes mid year to one with an additional loan limit. (for instance if you start the year as a freshman and change to a sophomore then you would be able to get the additional $1000 a sophomore is eligible for). </p>
<p>
Well that surprises me as well. The max subsidized for a junior or senior is $5500 - I don’t quite understand how they gave you $5580.</p>
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<p>I actually never noticed that. I took out $2144 for fall, $500 for spring, and $2936 for summer. That is what they offered me.</p>
<p>MSU does use Borrower Based Academic Year (BBAY) at times. This allows a student to borrow more when she is going to school year round. I am guessing this is what happened in your case.</p>
<p>Call tomorrow to find out for sure if your awards are correct. I am betting they are, and the reason is because MSU awarded your loans as BBAY loans.</p>
<p>I’ve often wondered why a student who didn’t take the max amounts for Direct Loans (not Perkins) - say frosh and soph year - wouldn’t be allowed to borrow more for junior and senior year…as long as the max doesn’t exceed $27,000 by the time the student ends 4th year of education.</p>
<p>example.</p>
<p>frosh 3500
soph 3500
jr 10,000
sr 10,000</p>
<p>Why can’t this happen? It seems like a sensible thing to do.</p>
<p>I am, indeed, going to school year round- but are they allowed to give me more than the federal limit without informing me that I am going over? I am just curious. I will call tomorrow and see what the deal is. </p>
<p>Also, with this- they are giving me more in the fall and spring than the limit. If I am not going to school next summer (and therefore not year round for their FA purposes), are they still allowed to do the BBAY thing? (I have never heard of this so I am going to go look it up lol).</p>
<p>Another consideration … did you say Yes to any of the dependency questions this year? It is possible that if you did, you may have been incorrectly awarded as an independent student. That still does not explain the extra sub, which is why I suspect BBAY for your loan period. However, it might explain the absence of a PLUS offer (or you may just be awarded up to COA without needing the PLUS offer).</p>
<p>BBAY can assist students who are going year round because it allows them to finance the summer term when they otherwise would not have any loan eligibility. It is standard for some schools to award that way, and it is definitely within the regulations. Because I don’t work with it, I find it confusing. I have a wonderful coworker who awarded using BBAY at a previous school, so she always helps me unravel remaining annual eligibility! My concern with BBAY is that a student can get to her limit quickly … but in cases like yours, where you are progressing quickly through your program, it can make sense as it allows you to afford the extra classes you are taking.</p>
<p>Well, originally I WAS awarded a PLUS offer and then when it got changed, the PLUS offer went away. I’m going to go check my FAFSA right now to ensure that it was filed correctly. But I am most definitely dependent for FA purposes.</p>
<p>Then it is probably just the BBAY loan period that makes your awards the way they are. But it is ALWAYS good to check, as you do know! ;)</p>
<p>P.S. Are you in a SMART eligible major? This is the last semester it is available, so make sure it gets awarded if you are eligible for it.</p>
<p>Went and checked. Answered “no” to all the questions. I am only slightly worried because I am going to go the full 4 years and I don’t want to go over my lifetime limit :/. But I don’t think that should be a problem. It just doesn’t seem right that they can go over the limit without getting my permission first, even if it does help me (with more sub than unsub loans) in the longer run.</p>
<p>No, no SMART. BA in Arts & Humanities, BS in anthropology, and a minor in bioethics. Unfortunately, I don’t think those qualify me for anything lol.</p>
<p>ETA: I did some math too, and it might be a moot point. I am living off campus this year and I will probably NOT have to take out all of those loans (cheaper to live off campus than on- especially for a vegetarian who was forced to buy the full unlimited meal plan these last 2 years lol). I have been working like a crazy person this summer and will hopefully only need to take out a fraction of those loans.</p>
<p>Also thanks so much :).</p>
<p>It just doesn’t seem right that they can go over the limit without getting my permission first</p>
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<p>They did get your permission. You accepted the loans. I know that sounds kind of flip, but I mean that in all sincerity. If you didn’t need it, you wouldn’t accept it (as you wisely will not be doing this year, hopefully!).</p>
<p>^ That’s true. I guess I meant it just seems odd that they want to counsel me about the $421 before I can accept them, but they didn’t have any problem awarding the other overage amounts. </p>
<p>I haven’t accepted this year’s loan offers yet and won’t until I’m sure of exactly how it can affect my final year and I am absolutely sure of how much I will need.</p>
<p>Being a humanities major I wouldn’t expect to have a decent salary coming out of the program. Student loans will not discharge in bankruptcy so you will pay them back even if you are unemployed or underemployed. You don’t want to be the girl I know that graduated 50k in debt with a degree in music from a small private school. She defaulted and that amount is now much higher. Needless to say she will be living with her parents for the next decade until she pays off her debt. Just because you can max out loans that doesn’t mean you should.</p>
<p>If you had asked me what to do 2 years ago I would have told you to go to community college first and get real work experience part time while you go to community college. When I used to work retail while going to community college I knew 5 cashiers with bachelors degrees. One of them was a UC Berkeley graduate. Currently my fiance who doesn’t even have a BA degree is the supervisor of an individual that has a masters degree in education from berkeley.</p>
<p>That is one of my great fears, that my kid will come out of school with her Bachelors and end up working as a cashier in McDonalds and trying to pay her loans off. Fortunately her loans are not too high (around $20k), and no insult meant to anyone that works at McDs, but she didn’t need to go to college to do work there and paying even those loans for 10 years on that income would not be fun at all.</p>
<p>^^ Wait. What? I am graduating with about $20k-25k (at most- maybe not even that) in debt, NOT $50k like whatever girl you knew. And going to a CC would have done nothing for me considering I started with nearly as many transferable credits as I would have been able to bring in anyway. I am staying the four years because I studied abroad and have an internship lined up for my senior year. </p>
<p>You have no idea what career prospects I have. I have a few job offers already (after only 2 years in college) where I will be able to comfortably make my loan payments (I help run a nonprofit and quite a few people that are on the board with me want me to come work with them when I graduate). </p>
<p>Additionally, my loans will NOT be that high because I just realized that my yearly $5k scholarship is not included (I have no idea how I forgot about that and now I feel really dumb and oblivious). Therefore, I will probably be taking out about $4k (at MOST) in loans this year and will most likely graduate with less than $20k in debt. As long as I don’t take another trip or two to the ER, I shouldn’t have to take out any loans for this year. I would not have had to last year if my body wasn’t defective lol.</p>
<p>ValleyAccountant, OP is one of those students who definitely has considered loan debt & repayment and is borrowing responsibly. She has done due diligence since before she began school & is doing her best to keep her loans to a minimum.</p>
<p>Also </p>
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<p>I work three jobs part-time during the school year. One full time in the summer, one part time. WHILE going to a traditional 4 year university.</p>
<p>kelsmom and swim, thanks so much for helping me in this (as always, you’ve put my mind at ease :D). I can’t believe I forgot about my $5k KFC scholarship and how that will reduce my loans. I feel like a total dummy right now. Unfortunately the tornado that ripped through Michigan yesterday left my boyfriend’s house in shambles so I wasn’t thinking entirely clearly these last 24 hours. </p>
<p>I guess this thread is a good reference though for anyone in the future whose school does offer them more loans because they’re going full time and year round. I have been on this board for quite a while and have never heard of the BBAY. If schools practice it, I think it might be a good (if students are borrowing responsibly) or bad thing for students to know about. Could save them the confusion that I was under lol.</p>