<p>well, maybe not insanely. But, if a school meets 100% of need and doesn't offer instiutuional or private lender loans, does that mean that the only loans in a FA package will be federal/state and that a student with an extremely low EFC get the max in federal and state loans?? (does anyone know what the max in fed loans is?) </p>
<p>Does this also mean that whatever federal or state loans do not cover up to your EFC will have to come in the form of grants (either federal, state, or institutional)? </p>
<p>I ask this because I want to apply ED, but only if the only kind of loans I get are federal or state.</p>
<p>If you’re talking about the schools that say there are no loans in their packages, they mean no loans at all. The package will be composed of grants and work study.</p>
<p>What is an “institutional loan”? Schools do not typically broker loans. If you have a balance between financial aid and what the school costs, you have to take a loan. There are federally funded loans (Stafford and Perkins). Everyone completing a FAFSA is eligible for a Stafford Loan. Perkins is given usually to very low income students and is also on a first come/first served basis. In both cases, the schools don’t broker the loans. You get them through a recommended lender.</p>
<p>Any other loans are loans that you (with a cosigner) or your parents would take. These include Plus Loans for parents. Again…schools don’t broker these loans.</p>
<p>What do you mean by “institutional loan”? Did you think schools are in the business of taking loan applications and loaning students money? I don’t believe they are.</p>
<p>Are you sure about the lender aspect? I pulled this from the Miami University website</p>
<p>“Eligible students filing the Free Application for Federal Student Aid (FAFSA) will be considered for a student William D. Ford Federal Direct Stafford Loan. The U.S. Department of Education is the lender.”</p>
<p>The U.S. Department of Education is NOT a college. And yes, they do broker loans. I didn’t say they didn’t. I said the COLLEGES don’t loan students money. What is an “institutional loan”?</p>
<p>Please explain the “institutional loan” thing to me. Are you saying that some colleges are in the loan dispersement business? Which colleges do this…offer loans to students directly from the college?</p>
<p>Thumper, here’s one example, but now that they have a no loan policy I have no idea what they do. From the Dartmouth FA handbook:</p>
<p>Dartmouth Educational Association (DEA) Loans are need-based loans from a fund supported
by Dartmouth alumni. Terms are as described for Perkins loans.
Dartmouth Educational Loan Corporation (DELC) provides need-based loans for
students whose self-help level is beyond that available from federal or other Dartmouth loan
funds. The variable interest rate is reset annually. In 2009-10 the rate is 6.5%. Loans are cosigned
by parents and students. Interest accrues from the date of borrowing, but payments of
principal will not begin until three months after students have left Dartmouth. A credit check is
required.
Foreign Student Loans are loans awarded to foreign students from Dartmouth College funds
and are based solely on need. The interest rate is 7%, and the repayment terms are comparable
to those for DEA loans.</p>
<p>Sorry if there was confusion on instutituional loans (sometimes called direct lender). I actually got the term from princeton review. </p>
<p>But my question basically is if I apply ED to a school that is needs blind, meets 100% of need and only offers government loans, can I expect a good financial aid package?</p>
<p>You can expect their typical aid package, some are better than others and all interpret need differently. Read the particular school’s FA handbook, run a calculator if they have one and call them with any questions.</p>
<p>Thanks so much hmom5, I just found answers to all of my question from their FA handbook. For whatever reason I decided not to look there before :)</p>
<p>Dartmouth will offer a Dartmouth Educational Loan Corporation (DELC) to students, to fund computers, health insurance, for study abroad (that may have changed with the recently) but not as part of the general FA package.</p>
<p>Just to add, schools that are 100% meets full need offer federal loans (except of course the very tiny number of no-loan schools.) I don’t believe there is a category of “state loans” that they would also include.</p>
<p>My experience is limited to the schools my kids have attended/currently attend or have researched/applied to.</p>
<p>Colgate is a 100% need school, and only included federal loans in the FA package. However, they only admit a limited number of students who require financial aid.</p>
<p>Columbia has removed all loans from their FA packages for lower income students. I am not sure how need factors in to the admissions process.</p>
<p>Right. that’s not included in a needs package at the “meets full need” schools. They might inform you of them in order to cover your EFC as an option, but that’s a different subject.</p>