If a freshman dependent undergraduate student qualified for/ was granted a $5,500 subsidized Stafford Loan, my understanding is that $3,500 of this loan amount would be subsidized and $2,000 would be unsubsidized.
If on the other hand, the same student qualified/ was granted a $3,500 subsidized Stafford Loan, would the whole $3,500 loan be subsidized, or would at least $2,000 of this loan be required as unsubsidized?
With appreciation,
parentsofsboys
You have to qualify for subsidized portion of the loan. Not every student gets all or a portion of that $3500 subsidized.
If only $3500 was granted of the $5500 because that was all that was needed to meet the COA, yes, all $3500 can be subsidized. My daughter only took the subsidized part of the loan each year. She was awarded the entire amount, but on the FA page where you do the acceptances and declines, the subsidized loan and unsubsidized portions were listed separately.
twoinanddone:
That is exactly the information I was looking for. ie: one can elect to only borrow the subsidized portion.
Thank you so much - I am learning quickly…
parentsofsboys
Guessing this is a typo…because you can’t get $5500 in subsidized loans. The max is $3500 subsidized.
As noted, that full $3500 can be subsidized…if you have that much financial need unmet in other ways.
The other thing…your student could be awarded $3500 subsidized, and $2000 unsubsidized. Your kiddo can choose only to accept the subsidized portion. Of course…if you NEED that additional $2000, you will have to figure out where it’s going to come from!