Sub/Unsub Loan Question

<p>My daugther is a Junior at Penn - this is the first time she has had to apply for a loan. She needs $2000 for this semester and none for next so she applied for $2000 for this semester - they approved but they are paying her half now and half next semester. She needs it now.</p>

<p>They also approved $1900 sub and $100 unsub. What is the difference between sub and unsub? </p>

<p>I guess my question is - if she needs $2000 now, should she have applied for $4000?</p>

<p>She is writing Financial aid - she can't call - she's on study abroad - which is why she needs $$$ - she can't work and they don't have a dining plan so she needs $$$ to buy food.</p>

<p>Thanks for your help.</p>

<p>Yes, you get it half and half. You can pay back the half you don’t need for the following term. Subsidized means that no interest accrues while she is in school and when the interest starts accruing, the rate is far less. She has gotten her maximum subsidized amount as that amount depends on need. Anything more she gets will be unsubsidized.</p>

<p>Thank you cpt. That being the case would you have her apply for another $2000? Or could she wait maybe a month to make sure she will need it and then apply for another $2000 (the goal being to get an additional $1000 for this semester)?</p>

<p>I would apply for the extra now. She should explain the situation to the fin aid officer. However, the rules are set up so that when you ask for funds first term you only get half, but when you ask in the second term, you’ll get the whole amount. Crazy, but that’s the way it’s set up.</p>

<p>And then factor in summer classes and it’s a real zoo. My kid had to borrow for the summer because her grants and scholarships can’t be applied to summer session. Then in the fall she ended up with a $12,000 surplus because of the grant that kicked in, so she repaid the loan.</p>

<p>Borrow more than you need after explaining to the FA office, and then promptly repay what you don’t need.</p>