<p>I've noticed that some colleges state that their FA does not include loans. When you use the NPC it shows that it is mostly grant and maybe work study but there is still a sizable EFC. Can a student still take out a Stafford Loan to help reduce the EFC?</p>
<p>Yes, in THAT case, you can take out a 5500 unsub loan to put towards EFC. </p>
<p>But, this is only if there aren’t already loans in the FA pkg.</p>
<p>(Very few colleges don’t put loans in FA pkgs.)</p>
<p>OK, what about some that I did the NPC and they gave $3500 in loans. Could I up that to $5500?</p>
<p>If a college does NOT use the Stafford loans as part of their aid package or uses only part of them, yes, you can use what is not used towards your Cost of attendance as long as your costs and aid numbers work out. That is, you cannot get more money than COA in most circumstances.</p>
<p>Thanks mom and cpt. That is what I was thinking but I couldn’t really find anywhere that actually said that.</p>
<p>OK, another question along the same lines.</p>
<p>If I was offered an FA that included $5500 in federal loans but they reduced it by $2000 because of an outside scholarship would I still be able to increase my federal loan back to $5500 which would reduce my family contribution?</p>
<p>Yes, you could, Mibsprincess. The federal unsubsidized loans are often used to reduce the my family contributon even for students who don’t qualify for ANY financial aid. One just has to be sure that the official COA for a school is not exceeded. In other words, if, for example, you do get outside awards and financial aid from the school that meets the official COA, you cannot take out any Stafford loans even if they are not included in your financial aid package. The maximum you and your parents can borrow is the COA minus any Merit awards and financial aid awards including loans and work study.</p>
<p>Thanks, cpt. I had noticed that colleges will state what gets reduced in you FA with outside awards. Usually it is loans and workstudy first. I was trying to figure out if it was worth trying to get many outside scholarships if it doesn’t actually reduce what you have to pay. But if it reduces the loan but you can still get it then that is the same as reducing what the family is expected to pay.</p>
<p>I have noticed that some places state that they reduce school grants first. That won’t help me at all.</p>
<p>Yes, schools differ widely on how they apply outside scholarships. Some let you keep them all and will only reduce what they have to according to federal/state law. Some have inhouse rules on maximums that you can have. Some take the money right up against the grants they give you which may not help you at all.</p>
<p>With Stafford loans, as long as the COA is not exceeded, you can take them, but on a non subsidized basis. The subsidized amounts ($3500 freshman year) are considered financial aid, whereas if you take the full amount unsubsidized ($5500 freshman year) you can use this to pay your EFC. Even someone with zero need, full pay, Trump or Rockefeller, can take out the Stafford on an unsubsidized basis to reduce what the family has to pay. But you can’t exceed COA of the college, though if you can live below the stated official COA, you can pocket what you have scrimped. There are exceptions with the way it works with PELL, federally, but most schools have their own policies that don’t permit that as an extra, though the federal governent regs do.</p>
<p>When Stafford loans and Workstudy are given as part of the College’s package to meet need, it puts a student in a hard place as they now cannot use the unsubsidized Stafford to pay some of the EFC and the time that they had hoped they would have to work to make some money towards the EFC is taken up by workstudy with the proceeds expected to go towards need not EFC.</p>