Once a few FA packages came in, we did a little negotiating and got our D 2K more merit aid at one of her schools. I just noticed that they lowered her loans from 5500 to 4500. I’m all for less loans, but wondering if that’s normal? Every school so far she has the 5500 in the package, as was this school until they increased the merit.
Her subsidized loan amount is based on finanical need. If Op has an increase in merit aid, their financial need has also decreased hence the decrease in loans.
To be clear, the amount of any subsidized part of the loan may have decreased because of a decrease in need, but the full amount of the Stafford direct loan ($5,500 for a first year student) should still be available.
The same thing applied to my D’s need met school too. For each dollar she got from additional scholarships (internal or external), the loan/work study amount decreased accordingly. In 3 out of her 4 years in college, her grant got reduced too as there were no more loan or work study to offset.
Some colleges explicitly state that merit scholarships will first replace student loan and/or student work that is assumed in the need-based financial aid package. Examples:
https://financialaid.stanford.edu/aid/outside/
https://students.ucsd.edu/finances/financial-aid/types/scholarships/
It was my misunderstanding - I thought students always got the 5500, regardless of other ,money (unless the school doesn’t do loans at all), I didn’t notice it was “up to 5500”.
If you qualify for loans, you CAN take up to the $5500 even if it isn’t on your package. Some schools are ‘no loan’ schools’ which means they don’t consider loans as part of the package but the student can still take them, or the parents can take PLUS loans up to the COA-other financial aid. You have to request that the FA office put them back in the portal.
Did you negotiate as the parent with regards to merit aid or did your child? Thanks in advance.
I (parent) did it. In this case our D got a bit more from a comparable (same state, same tuition) school and was only 20 points (SAT) away from the “next tier” of automatic scholarship, so I just sent a simple email mentioning those two items and asked them if there was anything they could add to her package and they did.
Thank you so much!!