receiving more in loans than i need?

<p>Including tuition, room and board, and fees, i've determined the school i'll be going to will cost me roughly $19,864 for the fall and spring semester combined.</p>

<p>Viewing my financial aid award letter...including grants, a scholarship, and loans, they gave me $21,864 (it says $24,039, but I subtracted the projected work study money since that will probably be money I will try to save but most likely end up spending on groceries/supplies ill need throughout the year, assuming I get a position)</p>

<p>I got three different types of loans, $6000 in stafford unsub, $3500 in stafford sub, and $1100 in perkins loans. I know these three loans are all different types of loans... so it makes it really confusing for me, in that sense that there's $2000 I probably won't be needing. I don't know which of these three loans won't go into effect for the money that I don't need... and also, would they just give me the money back that I don't need?</p>

<p>Sorry if that sounds confusing haha</p>

<p>Your financial aid award is based on the school’s COA which includes tuition and fees, books, room and board and also allowances for travel and personal expenses. Once any direct expenses (expenses the school charges directly) have been covered then you will get any excess aid paid to you to cover your indirect expenses. </p>

<p>That is quite a lot in loans. If you accept the full amounts then that is what will be paid out to the school (hald per each semester assuming you are on the semester system) and the balance remaining after direct expenses will be “refunded” to you. If you feel you do not need all the loans you can accept only the amount of loans you need. The best one to get rid of are the Unsubsidized Stafford loans. They have the highest interest rate (6.8%) and interest starts accruing as soon as the loan is disbursed to you.</p>

<p>So the extra $2,000 must be for travel/books, and I don’t need loan money to cover that, in fact I’ve already purchased my books for this semester.</p>

<p>Well yeah it’s a lot in loans, but it could be worse. It’s not like I have much of a choice; my family isn’t made of money (EFC is in the 300’s I believe). Also, i’m saving money from work so that I may not have to take any loans next year, not to mention I basically just need the loans for room & board and fees, so the option to commute is always there as well. I’m still a bit confused, but thanks for the reply.</p>

<p>$2,000 in excess isn’t much and you will only be a freshman; in all likelihood you’ll need that money anyway. If you’ve got some money saved up already and you work hard next summer then maybe you won’t even have to take out loans next year. People act like taking out loans is a death sentence, and sure, you could’ve went to a CC, but CC’s can also be fairly unattractive, not to mention your scenario isn’t THAT bad. Could be a lot worse.</p>

<p>Hopefully you’re majoring in a good field, just focus on studying hard in school, interning, and you should be fine, a good rule of thumb: your first year salary upon graduation should be more than or equal to your student loans. Never less.</p>

<p>-Josh</p>

<p>The thing is, MusicJosh, if he needs the loans later he can always take them out then instead of keeping them now if he’s sure he won’t use them.</p>

<p>Well for this year i’ll be needing all but about $1900 in loans i’ve been offered… and chances are i’ll be needing that money at least some point in the next four years anyway.</p>

<p>But i’ve got a couple thousand dollars saved up at this moment, and plan on making more in the summer so that I won’t have to take out any for next year too. Furthermore, I may end up commuting my last 2 years, and that would save me quite a few thousand as well.</p>

<p>If all goes as planned, I shouldn’t have to take out much more than around $20,000 in loans for my education… but we’ll see how it goes. Lots of factors including rising tuition, whether or not i’ll commute, get a place with some roommates, etc.</p>