<p>I have a family friend who JUST got accepted as a transfer student to a state school and just received her FA info a day or two ago (only an unsubsidized loan was offered). Classes start in about a week. Although eligible for FA (meaning low EFC), she was offered only an unsubsidized stafford loan, leaving a large gap. Was told to go online to apply for private loans. The family has no experience with this process and there is little time to do much research so I am hoping someone can point me in the right direction. </p>
<p>She was going for free to a county college through a merit scholarship program so has not gotten involved with loans yet. I know state schools don't offer much aid but I was hoping she would have received some grant $ and a subsidized loan. I am hoping the state school simply ran out of $ due to the mid-yr transfer and next year's FA pkg will improve as they indicated to her family. I also will have her follow up with NJ state programs like TAG but I fear she missed deadlines for this school year but want to ensure she's in the running for the 2012 school year.</p>
<p>And NO, I would not have encouraged this transfer until fall but there are extenuating circumstances where it's necessary to make this move now.</p>
<p>Does anyone know how long it takes to apply for/process/receive private loan $? Sallie Mae was suggested by the FA dept. Is that a reasonable option?</p>
<p>Assuming her family has a relationship with a bank/credit union, that is where I would start.</p>
<p>Did she file the FAFSA for 2011-2012 school year? She should be able to have that sent for the TAG. I don’t think she has missed the deadline for this spring
<a href=“http://www.fafsa.ed.gov/fotw1112/pdf/Deadlines.pdf[/url]”>http://www.fafsa.ed.gov/fotw1112/pdf/Deadlines.pdf</a></p>
<p>I don’t understand how she can be low EFC and only eligible for unsub loans. If EFC is low enough for Pell, she would get that (unless the last school awarded her summer Pell and fall Pell from 2011-12 award year). If she is low income, she should certainly be eligible for sub loans. Unless your definition of low income and mine are radically different …</p>
<p>Very often mid year transfer students receive significantly less aid…in terms of grants and the like.</p>
<p>HOWEVER, if she submitted her FAFSA to this school and is Pell eligible, she should have received that portion (unless as Kelsmom pointed out she already received this). Subsidized loans would be based on her need at this new school.</p>
<p>P.S. If the family really is LOW income…will they even qualify for a private loan?</p>
<p>First, the student needs to make sure she has all the Pell, sub, and unsub loans she should have been awarded. Sometimes it takes time for midyear transfers to be properly packaged with aid. Then her family should consider applying for PLUS rather than private loans if they need to borrow. It is generally easier to qualify for PLUS than for private loans, and the interest rate and terms are often better. If the family is turned down for the PLUS, the student can borrow an additional $4000/$5000, depending on her year in school at the new school.</p>
<p>If she has not borrowed this year at all, she will be eligible to borrow the full annual eligibility for her year in school during the spring term … up to the cost of attendance for the term. If the loans are less than the COA, she can borrow PLUS/private loan up to the difference. If the PLUS is denied, she can borrow up to $4000/$5000 or difference, whichever is less.</p>
<p>To the family…if they are really low income, why would they want to assume loans? Is this a large amount or just a few hundred dollars.</p>