Now that all my Son’s decisions are in we are in the process of comparing financial aid offers. One of his school lists under “other aid” Federal Direct Loan $2500. It is my understanding that federal direct loans can either be subsidized or unsubsidized, correct? If so, why would the school not specify if the loan was subsidized or not? I will call or e-mail the school on Monday, but was curious about others experiences. One of his other schools has no loan component and the other is providing about 3100 subsidized and 400 unsubsidized.
That school may not know if your son will qualify for subsidized or unsubsidized just based on the information they have. It may be that your EFC is so close to the amount left to be covered by loans that it is hard to tell at this point whether the loans will be subsidized. Since the other school thinks $400 will be unsubsidized, I think you are very close to the EFC being covered.
However, it is a small amount either way. Yes, you’d rather have a subsidized loan but you are getting very close to full financial aid above your EFC. Of course the school with no loans at all might be the best deal.
@twoinanddone thanks for your reply. Very helpful information…and yes, we are lucky to have some great offers.