Financial Aid for Community College?

Hi, I was wondering if you are able to get the Stafford loan for community college. It’s not that I can’t pay for it myself, because it’s only around 3k with textbooks for one year. I just want to maximize my savings as much as possible before going to a university next year. Thank you

Usually, yes. You need to check with the school to see if it participates with the federal loan program. Does it have a school number on the FAFSA site?

@twoinanddone Yeah, I already applied for the FAFSA, it’s under review right now. I was just curious if you actually recieve aid or not, because the cost of attendance is so low. Thank you!

Yes, you can receive aid to attend a community college. I don’t believe you can get need based aid exceeding the actual cost of attendance…except the Pell Grant…which is an entitlement.

Financial need is a combination of your asset/income situation and your cost of attendance. When the cost of attendance is very low, you need a lower EFC to qualify for anything except for the unsubsidized loan.

If you can qualify for a subsidized loan or a Pell grant for community college, that would help you save some money towards your four year school. An unsubsidized loan will accrue interest charges faster than your savings account can grow.

You need to ask the CC. A number of CCs are NO LONGER awarding student loans because they’ve been punished by having students default too much. Call your CC and ask.

@mom2collegekids I already know the CC gives financial aid and loans, and i’ve already applied for the FAFSA. I probably should have phrased better- I meant, am I likely to recieve aid if the COA is so low and is something I can easily afford.

Many students do. What is your EFC? What is the COA of the school?

But, really, avoid taking any loans unless they’re subsidized loans and you can BANK them/SAVE the money to use towards your last two years.

@mom2collegekids My EFC is around 17k and the COA for my situation would be around 3k.

However, on their website the COA is closer to 10k- but this is because they factor in the cost of housing/food/extras which my parents will be providing, I will only be responsible for tuition and books.

Which would you say is a better plan? Becuase I will inevitably have to take out loans for the last 2 years. Should I pay for CC out of pocket and not take out any loans at all? Or should I use loans and try and maximize my savings for the last 2 years? Thank you

Your EFC is above the cost to attend this college. The school cannot give you need based aid when your EFC is bove the cost to attend.

I’m not sure you are even able to take the Direct Loan.

@kelsmom?

@thumper1 Well my EFC was above the cost to attend a few of the other colleges I applied to and I still got aid. It’s not that I can’t afford it, i’m just trying to financially plan out my next few years. I could pay for the CC out of pocket if I needed too

What kind of aid did you get at a few other colleges?

@thumper1 I got the 5500 for the Stafford Loan, and the rest was just Parent Plus loans. I also got 5k-7k scholarships from most of the colleges. I applied for some scholarships at the CC.

What do you think the best plan of action would be for financing my education? My original plan was to take out the loans for CC and try and focus on saving as much as I can for university, or do you think I should pay out of pocket for CC and rely on loans for university? I only have a year at the CC so i’m trying to figure everything out sooner than later

Scholarships are merit aid. They are NOT based on need.

Parent Plus Loans are PARENT loans. They are not student financial aid. And your parents can ONLY take. PLUS loan up to the cost of attendance.

If you don’t have to take out loans…don’t. It is highly unlikely that your loans will be subsidized which means interest will start accruing the day they are disbursed.

Will you need extra money once you transfer to a four year college? The ONLY reason I can see for taking the loan this coming year would be to completely bank it so you would have it for your four year school when you transfer.

The following numbers assume you put 5500 in the bank from an unsubsidized loan.

You have to pay one year of interest and fees about 4.8% = 264 dollars not available for college expenses
then maybe half your savings will be assessed on your next FAFSA, resulting in reduced financial aid = about 2750 less financial aid

You end up about 2500 ahead of where you started, but you have to pay back a 5500 loan (and the interest keeps accruing until you pay it off).

Of course, this assumes the university you transfer to would have met your need. If it won’t give you any additional aid for a lower level of assets, you can ignore the second part of the above, and it may make more sense to get the loan.

@BelknapPoint

If this student takes college loans…and banks them…are they considered assets for fafsa purposes?

@thumper1 What does banking loans mean?

It means putting the money you get from your loans in the bank…and leaving it there…u til you need it to pay four year college bills.

In my opinion, no. The answer to the FAFSA student asset question should not include student financial aid, and student loans are a type of financial aid.

That’s what I thought…money received as student financial aid is NOT considered an asset.