I am just asking this mainly out of curiosity, since I am perfectly happy with the financial aid package my undergrad school of choice has given me. What is the minimum amount of money that is awarded via Stafford loans? I got one that was like 100-200 dollars, which I found slightly curious.
That might have been the amount of financial aid needed to meet his payments. He should be able to take the entire amount (unless his aid was right up to the COA).
There is no minimum, but the hassle of doing the pre-loan online course, filling in the master promissory note, and getting the money is the same if you borrow $100 or the full $5500.
Stafford loan fees are based on a percentage (slightly more than 1%). So, other than hassle, it really isn’t a better deal for a large loan amount vs a small loan amount. However, the hassle factor is a consideration. My child received a direct Stafford loan of $2,848. I wouldn’t say this money is critical for my child to attend college, but it doesn’t hurt. However, not sure it’s really worth the hassle. I plan to pay it off as soon as the interest starts. We probably will use it just to have some extra breathing room.
You don’t have to take the loan if you don’t need it.
The school might have included the loan in the FA award so that all costs of the COA are covered.
But the COA includes direct costs that are billed by the school, like tuition, fees, room and board (if living on campus).
And also indirect costs that you might incur, but don’t get paid to the college, like travel expenses, books, personal expenses. The college estimates might be higher than the actual costs.
So when the college sends the bill it will have half of the yearly costs for tuition, mandatory fees, room and meal plan, plus extra course fees depending on classes registered for, listed and then half of scholarships or grants awarded.
The difference is due from you a few weeks before the first semester.
If you can pay direct costs minus aid without a student loan, good, if not the student can accept the amount needed.
If the student doesn’t take the loan in the fall, they can still get it later, as far as I know.
Ok I see. I guess it won’t be worth the hassle to take out a 100 dollar loan then
My kids both had the federally funded loans…and they were absolutely NO “hassle” at all.
What are you talking about?
There are the loan documents and ‘training’ (pre loan and exit) to complete online. There are the documents that arrive in the mail (I just sorted out a bunch that were mixed in with tax documents) about the loans over the years. If you child leaves school for a semester, more documents come in (BTDT because the grace period starts. I received a bunch of those last June/Sept as my daughter took the spring off and her grace period expired. Hassle.
That is more ‘hassle’ than just not taking the loans, and the amount of work for taking a $100 loan or a $5500 loan is the same.
Agree with thumper. It was no hassle. Just have to do a simple entrance counseling (or whatever it’s called). Takes but a few minutes. No big deal.
I would NOT take out a $100 loan. Get a few babysitting or lawn mowing jobs and earn that $100.
Like I said the loan might not be necessary. Summer job can pay for some expenses.
What is tuition, fees, room, board
minus grants or scholarships (free aid)
What is the net price ? (don’t include loans or work study)
@thumper1 I have more than that saved up from tutoring. Cost isn’t the issue, I just found the $100 loan curious.
@mommdc $72k is the gross cost, net price without loans, work study, or my external scholarship comes out to just under 45k. With my scholarship applied, I actually have more than enough grant money to cover all fees not covered by the scholarship. Again, I’m not worried about cost, just curious whether or not the $100 loan was a hitch.
Did you tell the college about your external scholarship? If you got need based aid from the college, it might be reduced due to the scholarship.
The loan was offered. You don’t have to take it. Period.
@mommdc Yup. My aid was calculated with the scholarship in mind.
@thumper1 I agree it’s not that big a deal. My daughter is a junior. She transferred schools. In her freshman year we took out the $5,500 unsubsidized loan. When she transferred to a cheaper school, I decided that we should just pay off that loan. I don’t remember the details, but it wasn’t a trivial thing to just payoff the loan. Nothing crazy, but it took alot more effort (typical poor customer service things, etc) than it needed to be.