<p>I'd like to know how the determination is made between the two- who gets subsidised and who gets unsubsidised- what is the cut off or borderline between the two- is it based on your expected family contribution? Ours is about $16,800. Thanks in advance for your help and advice.</p>
<p>Anyone have the answer to this question? I thought I would bump it up, b/c I would like to know.</p>
<p>Anyone? Help.</p>
<p>School's. But not 100% sure. maybe scotta can help.</p>
<p>There are two types of Federal Stafford Loans:</p>
<pre><code>* Subsidized Stafford Loans are awarded to students with demonstrated financial need. (The federal government pays the interest while the student is in school and during any deferment period.)
* Unsubsidized Stafford Loans may be awarded to students who do not have demonstrated financial need and therefore do not qualify for a subsidized loan, or to students who need additional funds. (Interest on the loan accrues while the student is in school and during any deferment.)
</code></pre>
<p>Just curious about how the determination is made, b/c it does not seem so straight forward to me.</p>
<p>It is detemined by your efc and at the discretion of the school. Your EFC would qualify you for the loan, but the school has the decision on which one you get (sub or unsub). A school could also choose to give you a mixture of both.</p>
<p>There is no real stright foward awnser. One school could give you all sub loans and another might give you none.</p>
<p>In our personal experience-the state school gave him subsidized stafford loans equal to our need and unsubsidized loans for the rest. Our EFC per FASFA was about $700 less than the cost of attendance for the state school and that was the amount of his subsidized stafford. The private schools offered all subsidized stafford because our need was greater since the cost of attendance was greater.
momoffive</p>
<p>My experience with this has been more haphazard as to unsubsidized vs. subsidized, or a blend of both being offered. S even was even offered a small perkins loan at one school, but that school only wanted to load him up with loans! This was a safety school too! I am just glad that he does not need to attend that school.</p>
<p>Alhambra - If your EFC is 16500 , your stafford will not be subsidized .</p>
<p>however our EFC is $15,000 and not only was the stafford subsidized but a Perkins loan which is generally for low income was part of package-
of course according to other incomes & EFC that I have been reading of- our EFC is fairly high considering before tax income</p>
<p>I have 2 in college. EFC for each came out to about $17,000 and we have received sub. loans for both. Our middle son will always be in college with a sibling and has always gotten the sub. loan. The youngest one who will be starting in the fall also was awarded a small Perkins from one of his schools and a larger Perkins from another.</p>
<p>You can't make a correlation between EFC and whether or not you will get sub. loans or not because it is a combination of EFC AND cost of attendance. If you have a relatively high EFC but the school you want to attend is very expensive, you are more likely to qualify for the sub. loan. Alternatively, if the school is less expensive such as a state school with in state tuition, the same person will not likely qualify for a sub. loan.</p>
<p>I didn't realize that staffords were subsidized up to a higher EFC ( I am glad it is !) .</p>
<p>They are, and looking at our results with this, I agree with the poster, deathsadvocate. It seems to be at the discretion of the school, and not necessarily the cost of attendance. We did not necessarily qualify for "subsidized" or even "partially subsidized" at all schools where our out of pocket costs were greater. I really found the results to be without a rationale that I could understand, so I was curious as to how this decision is made.</p>
<p>Thanks everyone, it's a bit clearer</p>