<p>I was offered a very generous financial aid package from University of South Florida. From the grants and scholarships that I will be receiving, it seems that I won't have to take out any loans for my first year. My question is if I decline all my loans (fed sub loan) for this year, will they still offer me the same amount of loans of next year just in case something happens and I have to take out some loans?</p>
<p>Declining loans will not affect future loan eligibility. Never borrow if you don’t have to! :)</p>
<p>Because our income is mostly unpredictable year-to-year, we’re accepting the subsidized loans and banking the equivalent amount. If we need it in subsequent years, it’s there; if not, we’ll pay off the loan at graduation.</p>
<p>Thanks, I was thinking of just accepting the subsidized loan and putting it in the bank and having it there just for emergency or if there is problem with my financial aid in the near future. I’ll just pay back all the loans after graduation. Subsidized loans interest does not accumulate while I’m still enrolled in school right? Do you think this is the best route to take or no?</p>
<p>That is my understanding - although you can’t “accept the student loan and put it in the bank,” since it is (normally) paid directly to the school. What you can do is take the money you would otherwise have paid to the school to cover the expenses paid by the loan and put that in the bank.</p>
<p>As to whether or not that is the best route for you, I would not presume to advise you. It’s clearly the best route for my family.</p>
<p>My understanding is that even if the school and not the student receives the money, it will eventually refund the difference to the student.</p>
<p>Yes, but the loan will decrease the balance owed because it is applied to charges. The effect is that the family will owe less … thus annasdad putting the money he WOULD have paid into the bank.</p>
<p>However that money in the bank then becomes an asset which is taken into account when calculating financial aid for future years, right?</p>