<p>D was offered unsubsidized Stafford loans and merit aid-- it seems she has to accept both to get the merit aid. Has anyone heard of this? </p>
<p>On the face of it I'd rather not take the Stafford loans, but of course the merit aid is important. I'm at sea about this but don't feel quite comfortable speaking to the FA office until I understand a little better-- is it worth accepting an unsubsidized Stafford loan if you can manage without debt?</p>
<p>I’ve not heard of this before.
If it’s true that you must accept the unsub Stafford to obtain the merit $$$$$, I’d do it even if I didn’t “need” that loan. The loan can be paid back early/at any time.</p>
<p>Can’t you accept the loan and then immediately use those same funds to repay it? But I have heard of schools requiring acceptance of self help aid to get the whole need based package but never as a condition for merit aid. Unless maybe it’s need based merit.</p>
<p>I would call the FA office. That doesn’t sound right.</p>
<p>I have never heard of anyone having to accept a loan in order to get merit aid. We certainly did not have to. Why do you think this is the case at your D’s school?</p>
<p>I have never heard of this practice either. I am just guessing here off the top of my head—could it be that at this school the policy is that you have to be on financial aid in order to get a certain merit award, and by taking the Stafford loan, your student is making herself eligible for that award?</p>
<p>I know schools often are stuck about giving certain scholarships that have stipulations. I also know that at some schools if you have ANY need, you are then qualified for merit awards that can be far higher than that need, but if you don’t meet that dollar of need criterion, you can’t get those awards because need is an essential component.</p>
<p>If indeed you have to accept the loan to get merit aid, you may not have to accept the full amount of the loan that is offered. If that’s the case just accept a token amount, say $500.</p>
<p>Please let us know how this turns out.</p>
<p>There is a difference between having to file the FAFSA to get merit aid and having to take the offered loans. Definitely clarify this with the FA office.</p>
<p>Thank you all-- I will call and report back. I’m guessing I have it wrong somehow.</p>
<p>I hope that there was just some miscommunication. But, if this school has some screwy rule (for no sane reason), then follow the recommendation above and borrow the minimum…which may be $500. And then pay it back immediately. </p>
<p>There really isn’t any rational reason since fed loans are not tied to merit scholarships in any way.</p>
<p>It actually does not matter how much you borrow. As long as you pay it back within certain period of time which I believe is 3 months, the origination fee is fully refund. The unsubsidized part will accrue interest while the subsidized part will be interest free money for 3 months.</p>
<p>Another thing to note, is that the school, (or at least the school that I had dealt with), actually knows or have access to the outstanding balance of loan. So I do not know if the school will have a fit if you pay it back right away to get the merit money.</p>
<p>^^^</p>
<p>Frankly a school that is that “up in your business” is not a school I’d want my kids associated with. I can’t imagine any school expecting/requiring you to take out loans…heck, tell it’s against your religion. ;)</p>
<p>I am betting this is a misunderstanding. A school cannot make a student accept a loan in order to get a merit award. How is the acceptance done … online, through the student portal? There is probably a place to “accept my award,” and another way to accept just parts of the award. I really, really do not think the OP’s understanding is correct.</p>
<p>You were right, all! Got confirmation this morning that the Stafford is not a requirement. They don’t do anything online and our FA was revised so it got confusing. Thank you!</p>
<p>Yay. It does get confusing. Thanks for the update.</p>