<p>I'm kind of confused about my fin aid letter</p>
<p>So the letter says tuition, room, and board cost 49,000 a year(I'm rounding)
and Finaid, grants, and etc = 47900 a year</p>
<p>so 49000 minus 47900 = 1100</p>
<p>but they want me to take a Perkins Loan thats $2500
this is the part that confuses me...if the difference between tuition and aid is 1100 why is it a loan of 2500? why isnt it a loan of 1100?</p>
<p>and if it really is just 1100 should i just pay it off myself without the loan? </p>
<p>also
is it true that if you dont loan some money, they will give you less financial aid?
someone told me that if you dont loan money, the colleges will think since you dont need to take a loan, you dont need as much financial aid
is this true ???</p>
<p>The COA, on which financial aid is based, usually includes allowances for costs such as books, personal expenses, travel etc in addition to tuition and fees and room and board. That is why the loan is larger than the difference between your tuition/room and board and other financial aid.</p>
<p>You do not have to take the Perkins loan if you do not want to. However it is the best student loan out there. The interest rate is 5% but is paid by the government until you graduate or drop below 1/2 time plus a grace period of 9 months. Also it has no origination fee. If there is a chance you will need the money you will not find a better loan. My suggestion would be to take it in case you do need it. If you find you are managing without you can always repay it. Just don’t fritter it away.</p>
<p>I have never heard of a school reducing your aid because you do not take a loan.</p>
<p>^ sorry but whats a COA ?
and what do you mean by allowances for books, travel, and personal expenses?
does that mean the extra $1400 in the loan is given back to you for buying textbooks and travel?</p>
<p>COA is the Cost Of Attendance. At my kids schools any excess money after direct school costs have been covered are given to them to pay for other expenses such as books (assuming they do not buy them at the school - my daughter does not as she can find them cheaper elsewhere) personal expenses. Though the money may not always be in hand in time to buy books elsewhere before classes start. </p>
<p>This is pretty much the norm for many schools but when and how may vary (for instance at my daughter’s school she gets the money about 2 1/2 weeks after the semester starts, at my sons it it closer to 5 weeks). The information should be available somewhere on your school website.</p>