Does paying down a loan, hurt future aid?

<p>Thank you everyone. I’m thinking he should wait to reduce his loans after rethinking the situations. Senior graduation expenses, an unknown tuition increase senior year, am estimated reduction in the Pell Grant means he will most likely need the funding to finish school. It is crazy that the harder one works to minimize loans, it often means that the increased earnings reduce or eliminate the grant aid leaving an even larger gap.</p>