<p>I've already received 2 $1000 each scholarships from private sectors and I reported one of them to the college that I might be attending. I also received $3500 in subsidized stafford loans from this college and my parents efc is around $6000. After I have informed the college about my scholarship, they deducted $1000 from my stafford loan cuz the scholarship is considered part of my resources. My parents don't want to get a loan and the most they will pay for me is around $3000.<br>
I was kind of upset when they cut into my stafford loan but then I told them about my parents inability to pay that much money and so they decided to give me a $3000 unsubsidized stafford loan. My question is: If I tell them about the other $1000 scholarship or any other scholarships that I might get, will they deduct it from the subsidized or unsubsidized loans? I was hoping to use any outside scholarships that I might get on the EFC but I didn't realize that they actually deduct your financial aid the minute you get outside scholarships. Thus it begs the question, is outside scholarship worth it?</p>
<p>Wait, your mad because you are taking $1000 less in loans because it is now paid for? Why would you want more loans and less scholarship money?</p>
<p>If this is not the case, then I have no idea what you asking.</p>
<p>Outside scholarships reduce your need, so reducing your subsidized loan would be correct but it could also reduce your need for the parent plus loan or out of pocket expense. Any time that loan funding is replaced by a grant or scholarship, it is a GOOD thing.</p>
<p>I know its a good thing but I was hoping that any outside scholarships that I receive will be considered as PART OF MY EFC. Thusly, reducing my parents contribution. That’s my first priority. (I think my parents has done a wonderful job catering to my needs for the past 18 years. Its my turn now.)<br>
Any other balances that I have from the scholarships, I want to apply it to my loans next. I prefer the subsidized loan to the unsubsidized ones and I was mad cuz they reduced my subsidized.
I know I will get more scholarships, its just a feeling, but I was hoping that I have a say as to where I want the money to go to first instead of them deciding it for me.</p>
<p>Nothing will reduce your EFC. You are reducing the amount of loans they need to take out and therefore are reducing what they are contributing. You can choose to use that to reduce the amount that they contribute by 1000, but nothing will reduce their EFC.</p>
<p>For real? meh… So lets say, I might get another $2500, will they apply it to the subsidized or unsubsidized loan first?</p>
<p>p/s - thank you romanigypsyeyes and NikkiIL for your input.</p>
<p>Yes. If you feel that strongly though, you can always perhaps borrow from your parents or take out a private loan. </p>
<p>Also, everyone can borrow up to 5500 in unsubsidized Stafford loans regardless of need.</p>
<p>When outside aid is awarded, it is added to all regular aid (Pell, institutional aid, other outside aid, SEOG, Perkins, etc). This total is subtracted from the total Cost of Attendance. Then your EFC is subtracted from the balance. This new balance (COA-Total other aid-EFC) determines if you have eligibility for the subsidized loan. If the total of the EFC and other aid is equal to or greater than the cost of attendance, there is no subsidized loan eligibility.</p>
<p>For example:</p>
<p>COA = $25,000
Other Aid = $8,000
EFC = $6,000</p>
<p>Total need = $11,000</p>
<p>You would have eligibility for the subsidized loan.</p>
<p>However:</p>
<p>COA = $25,000
Other Aid = $18,000
EFC = $6,000</p>
<p>Total need = $1,000</p>
<p>The maximum you could receive in subsidized loans is $1000.00. If another scholarship came in for $1000.00, you would have no sub loan eligibility.</p>
<p>These are federal regulations and the school has no authority to override the way the calculation is performed. Once your eligibility for sub has been reduced to zero, they can start reducing your PLUS loan and then the unsub loan…</p>
<p>However,</p>
<p>Some schools will reduce institutional aid before they begin reducing loans.</p>