Question on Stafford Loans

Paying for College
1

<p>My daughter received her Financial Aid Award letter today and the aid offered was just about what we expected with one exception: the Stafford Loan.</p>

<p>Based on our EFC (almost $30k) I never expected to get any subsidized loan, yet they offered her $3500 in Subsidized and $2000 in Unsubsidized. I was pleasantly surprised to see the subsidy for over half the total loan amount.</p>

<p>Just what determines how much is subsidized and unsubsidized?</p>

2

<p>The maximum total Stafford for a freshman is $5500 of which up to $3500 can be subsidized. Subsidized is need based (presumably based on the COA being higher than the EFC and the need not met with other aid). So the breakdown of the maximum $5500 can range anywhere from $3500 subsidized (if there is need) and $2000 unsub, to $0 sub and $5500 unsub.</p>

3

<p>Thanks, swimcatsmom. So much to still learn as I navigate this first year.</p>