<p>I'm confused a bit about sub vs. unsub Stafford loans. If we have some need as defined by the FAFSA, but that need is fully met by grants from the school, can my daughter take out a Stafford Loan to help meet the expected family contribution? Would those have to be unsubsidized loans since our need was met? And those accrue interest all along but don't have to be repaid until six months after graduation?</p>
<p>Student</a> Aid on the Web</p>
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<blockquote> <p>can my daughter take out a Stafford Loan to help meet the expected family contribution>></p> </blockquote>
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<p>If your daughter's need was met, any Stafford Loan would be unsubsidized (no need...no subsidy). RE: using the Stafford to meet the EFC...hmm...I'm not sure about that one.</p>
<p>Here is how you determine Stafford eligibility:</p>
<p>Cost of Attendance (COA) - Expected Family Contribution (EFC) - all grants/scholarships/other aid school awards before Stafford loans (such as Perkins loans & work study) = "need" used to determine subsidized Stafford eligibility</p>
<p>COA - all grants/scholarships/other aid school awards before Stafford loans - subsidized Stafford loan award = eligibility for unsubsidized Stafford loan. (Notice this is same as above, WITHOUT EFC and including any sub Stafford awarded).</p>
<p>COA is the school's financial aid budget (found on f/a website), which includes tuition, room, board, fees. miscellaneous.</p>
<p>EFC is the FAFSA EFC (even a Profile school must use FAFSA EFC for determining subsidized Stafford eligibility).</p>
<p>"Need" for subsidized Stafford can exceed the maximum subsidized Stafford amount for year in school ($3500 freshman, $4500 sophomore, $5500 junior/senior). Student cannot receive more in a subsidized Stafford than the maximum allowed for year in school, though, even if the need is greater.</p>
<p>Eligiblity for unsubsidized Stafford also can only be awarded up to a maximum for year in school, even if the eligibility is greater than the maximum for the year in school. In this case, you use a maximum Stafford loan amount that includes any Stafford loan (sub and/or unsub): $5500 freshman, $6500 sophomore, $7500 junior/senior. If there is no subsidized Stafford awarded, the entire maximum can come from unsubsidized - but if a subsidized Stafford has been awarded, the unsubsidized amount can only be maximum Stafford loan minus subsidized Stafford awarded.</p>
<p>To answer the OP's question: If your child's ENTIRE COA has been covered by your EFC plus grants, there is no remaining need. In this case, your child will still be eligible to borrow the maximum Stafford amount for year in school. Let's say she is a freshman. If COA is met between EFC and grants, she can borrow $5500 unsub. </p>
<p>HOWEVER ... ALL grants & scholarships must be taken into consideration. So ... let's assume there is no eligibility for any Title IV federal need based aid. Your child's COA is $20,000. She will be eligible only for an unsub Stafford loan of $5500. However, the total of her grants and scholarships is $17,000 (lucky kid!). In her case, she will only be eligible for an unsubsidized Stafford of $3000 ... because $20,000-17000=$3000. The unsub loan is not need based, BUT it cannot be combined with other aid in excess of COA.</p>