I’m curious whether anyone knows the degree of relative neediness among work study, Perkins loans, and Direct Subsidized loans. In other words, if one of these was to be lost because of decreased need, which would go first?
Perkins loans usually go to the neediest students, those who are also receiving Pell grants, but it really depends on the school and how much that school has to offer. Many students who qualify for work study are above the Pell limits, but still need to have some need. If you don’t get work study, you can still get a job. Whether the loan is subsidized or not has to do with the COA and your EFC. If there is a gap between EFC and COA that isn’t filled with other grants, you’ll get a subsidized loan. Last year one of my kids qualified and one didn’t, and they both had similar EFCs, but different grants and COAs.
So are you saying the Perkins loan would be the first to be scrapped @twoinanddone ?
Students who are Pell eligible can likely qualify for work-study and Perkins (depending on your school’s resources). If income rises and is over the threshold for Pell eligibility, a student would likely lose federal work study and Perkins as well.
Colleges have a very limited amount of Perkins loan money to lend out, based on what that college’s students have repaid on prior Perkins loans. It is usually packaged for especially needy students.Work study is more often packaged much more widely. I’ve seen students with $40K EFC’s get $2K or so in work-study funds at quite a few more expensive colleges.
Every answer is different. Work Study first, Perkins first, etc.
A lot depends on the school…except for Pell which is a federal entitlement grant.
Perkins Loans and Federal Work Study Funds are given to the college’s who decide who will receive these awards. Both have limited finding per college campus. A student would need to have financial need for THEIR college to be eligible for these.
Perkins Loans are given to lower income accepted students at the college. The college decides that low income threshold. It is not tied to the Pell Grant eligibility at all. Students need to be lower income for their college…meaning they might not be very low income in the general sense. My kid received a Perkins Loan for two years…and we are not low income…but we must have been lower income in the applicant pool at the kid’s expensive private college.
Federal Work Study is also given to students with financial need. It is not tied to Pell eligibility either. Again, the college’s award this money.
Since Perkins Loans, and federal work study have limited funding, they are awarded on a first come first served basis in most cases.
Federal SEOG is another need based federal grant. This one usually is awarded to Pell eligible students. Not all colleges participate, and there is no guarantee a student will receive this grant.