Not taking Direct Loans

<p>My son got a nice merit award for the private university he will be attending, and also need-based grants. The package includes the usual $5,500 in Stafford loans, but no work study, and meets our full (substantial) need.</p>

<p>If he works PT, as he intends to do, and we make our EFC, it will not be necessary for him to take the unsubsidized loans (the subsidized ones will be enough).</p>

<p>If we don't take all the Federal loans, do you think that will cause the school to give him less grant aid next year? I understand that his income will affect our EFC (if it exceeds a certain amount), but what I am wondering is whether just the fact that we didn't take the unsub loan will cause the school to reduce aid in future years? I hate to pay the interest for money we don't need, on the other hand I don't want to throw away "free money".</p>

<p>We have been told that outside scholarships will not reduce his grant aid, so maybe I'm worrying needlessly? Seems that this school is pretty liberal with their aid.</p>

<p>First, i believe that many, if not all colleges let outside grants replace loans but not family and student contribution.</p>

<p>I don’t think you will get any reduction in need based aid. I’m sure you will get other comments.</p>