<p>Sorry for the ignorance, but I have a misunderstanding about Stafford loans.</p>
<p>I do understand that the amount awarded as a Subsidized Stafford Loan is based on the EFC from filling out the FAFSA, but I am a bit confused about the way an Unsubsidized Stafford Loan is awarded.</p>
<p>Does the fact that I'm a junior (or will be in the fall) mean I'm automatically entitled to (up to) 5500 dollars in Unsubsidized Stafford Loan money, or does the EFC still play some role?</p>
<p>Also, when I contacted my financial aid office about this issue, I was told that no one receives an Unsubsidized Stafford Loan without their parents first being denied for a PLUS loan? Is this true?</p>
<p>Thanks for your help!</p>
<p>the amount you can borrow is not tied to your EFC for stafford loan. It is linked to your class standing. I</p>
<p>whether you get a subsidized loan or unsubsidized is linked to your need (but I honestly don't know how the exact determination is made) or the plus loan (I didn't take any plus loan and my son got a subsidized stafford loan)</p>
<p>They are actually going to raise the stafford limit by 2K per year
so your limit will be 7500 instead of 5500 for junior year</p>
<p>if your parents are denied a plus loan (and they are easing requirements for more people to qualify), you can get additional stafford loan FinAid</a> | Loans | Student Loans</p>
<p>The determination for subsidized and unsubsidized Stafford Loans is tied to your EFC and the Cost of Attendance. Basically, the school calculates your cost of attendance, subtracts out any outside aid, grants, reimbursement, etc, that you will receive. Then they subtract your EFC. The remaining figure tells them whether you have a "need". If there is a need, you become eligible for some subsidized loans. As a dependent Junior, the maximum you are eligible for is $5500, which can be either subsidized (if you have need), unsubsidized, or a combination of both. As sue said, if your parents are denied the PLUS loan, then you become eligible for an additional $5000 in loans, which would be Unsubsidized, regardless of need. (The federal maximum for the Subsidized Stafford Loan is $5500, even if the calculated need is higher than $5500.) <yes, i="" am="" still="" using="" 07-08="" figures="" until="" know="" with="" 100%="" certainity="" that="" the="" proposed="" legislation="" is="" going="" to="" be="" passed="" by="" congress.=""></yes,></p>
<p>thanks for the info on whether or not a student is offered a subsidized stafford. I'm pretty sure my son will get one again because with a COA at NYU (where my son goes) of 50K and even though he has a 30K scholarship and my EFC 12K he still has 'need'</p>
<p>I hope the president signs the bill</p>
<p>NikkiL, my son applied to 2 state schools 2 years ago. School A had a COA of 24000, and school B had a COA of 28000. My son was determined to have no need at school B, but had need at school A of $500, where he was awarded a partial subsidized Stafford. Why would my son have had need at a school with a COA that was $4,000 less at school A, but not at public school B where COA was 4,000 more? Both were OOS public Us.</p>
<p>So, if I'm understanding this correctly, I can take out whatever is needed up to the 5500/7500 number, regardless of EFC/need?</p>
<p>Just a little more info: My EFC is 15200, while my CoA is 18500; I am in Georgia and have HOPE scholarship (which amounts to roughly 3750 in tuition/fees for the year).</p>
<p>So the fact that my current Financial Aid (3750) plus my EFC (15200) is over my CoA doesn't preclude me from the Stafford Loan program?</p>
<p>We really don't have the money to meet the EFC, considering my parents filed for bankruptcy about 2 months ago. Also, if applying for a PLUS loan is a requirement, this can't happen, as they have been advised by the lawyers handling their bankruptcy to not apply for anything that may show up on a credit report for the next 6 months to 1 year. With this being the case, is it possible that my college could override the EFC or do something to allow me Stafford Loans?</p>
<p>Thanks so much for everyone's help!</p>
<p>northeastmom,</p>
<p>The only thing I can think if, without having all of the facts and figures is that, while the COA at school B was higher, yoiur son must have aid available at school B that wasn't available at school A. If the scholarships/grants were more at school B, then this could attribute for the need determination at school A but not B.</p>
<p>mbj, I would defer this to NikkiiL and others, but I think that by filing your fafsa, you would still qualify for the unsubsidized Staffords.</p>
<p>NikkiiL, actually at school B, my son did not get a dime offered either through merit or financial aid. Thanks anyway.</p>
<p>Northeastmom,</p>
<p>Then I really can't tell you what happened without seeing the information the school used to make that determination. Based on the training I have received, and based on many discussions with other schools, either something was done wrong (which is a possibility) or the methodolgy the school uses is flawed (which is also possible.)</p>
<p>mbj,</p>
<p>As long as the total aid disbursed (which includes loan funds) doesn't exceed the total cost of attendance, you should qualify for unsubsidized loans.</p>
<p>Northeastmom, sometimes the COA that the financial aid office uses to award aid differs from what you might think COA is. For example, School A may use tuition, room, most expensive board plan, travel (perhaps quite high from your area of the country), books, fees (including lab fees), miscellaneous (maybe quite high if in an urban area with a high cost of living). School B may use tuition, room, lower board plan, and basic student fees. That could possibly account for the difference (although your case is a pretty big difference). Just a guess, though. </p>
<p>For subsidized Stafford, a student is eligible to borrow (up to the maximum allowed for year in school) the amount of the gap (COA-EFC-grants/scholarships). Unsubsidized Staffords are available regardless of whether or not there is a gap, up to the maximum allowed for year in school. You have to fill out a FAFSA, though, to get an unsubsidized Stafford (even if you KNOW there is no gap).</p>
<p>NikkiL, thanks anyway. It doesn't matter any longer, but I was curious. </p>
<p>Kelsmom, thanks. The #s I was using came from the school. They were not my numbers. Oh, and at yet another school, we were actually offered a Perkins loan on top of the Stafford. I did not know that an upper middle class family would qualify for a Perkins Loan to meet need at a private college. This was because the school offered no grants, and needless to say, we turned that offer down.</p>
<p>Northeastmom, we were also offered a Perkins at one school & were very surprised. I don't know much about the Perkins, since it didn't exist back in the Jurassic period when I worked in financial aid (back when parents amended prior years' tax returns to make their kids independent for financial aid!). I checked out the Perkins info on the government website and it says that schools have "substantial flexibility in awarding" Perkins loans, as long as there is a need.</p>
<p>I am not sure exactly how the Perkins Loans work but some schools don't get any Perkins loan money and others get the money.
My oldest got Perkin's loans for 4 years.
My youngest - when I spoke with financial aid about her package, I asked about a Perkins Loan since it was not included. She told me they didn't get any money for Perkins this year at all, only a miniscule amount last year (enough for one student). I asked her what drove the criteria for a school to receive the Perkins money and she didn't know.</p>