<p>I'd love some help deciphering the two fin aid letters we received today for D2. I filed our FAFSA a few weeks ago with estimated numbers as our return is not done, but here are the facts:</p>
<p>Both are from state flagships, she is OOS. Our EFC is above the COA after we apply merit offers, and those were received well before the FAFSA was ever filed. Since I wasn't expecting anything, I am wondering if there isn't a mistake. School #1 explained "you have little or no eligibility" and provided their website for unsubsidized information. School #2 offered the combination of subsidized $3,500 plus usubsidized $2,000 loan. Do schools have the leeway to offer a subsidized loan to someone without need? </p>
<p>I am familiar with the unsub loan process, we pay the interest on one for D1, so was expecting the same process again. I would go back and ask her school to "subsidize" part of the Federal Direct Loan if I thought we could!</p>
<p>Is there an obvious reason to the discrepency?</p>
<p>I would love to know the difference between the subsidized and unsub loans…??
Any help would be appecialted.</p>
<p>I would also like the know what the EFC limits are (if there are some) for getting subsidized Stafford loans. I was recently shown a FA package from someone who had a $20k EFC, but the FA package had both sub and unsub Stafford loans (and Perkins). I’m curious if their is an EFC limit for getting sub Stafford loans. </p>
<p>For instance…could someone with a $45k EFC for a $50k COA school, get sub and unsub Staffords to meet need??? That seems odd to me. I would think all such a person could get is $5k in unsub Staffords.</p>
<p>I am surprised you got a subsidized loan if your EFC is higher than the COA. I thought there had to be need for you to get subsidized loans. Is the merit aid shown on the award letter?</p>
<p>GCmom…Subsidized loans do not accrue interest while the student is in school. The interest is “subsidized” by the government. An “un-subsidized” loan begins accruing interest the day the loan is disbursed, and is added to the balance. They have a rate of 6.8%. Both loans have the same payback schedules after graduation.</p>
<p>Sub is a lower interest rate. 4.5% for loans disbursed 2010-2011.</p>
<p>I am surprised as well. Yes, the merit awards are included on the letter. One was an automatic award based on ACT/GPA, so no need considered. A second merit award was granted from their Honors college and we were notified some time ago, before the FAFSA was filed.</p>
<p>Update…I called School #2 fin aid office. Got immediate help! Turns out I missed the “additional” expense box of the COA which was significant, and enough to bump us up to a need situation of about a $1,000. So, for that, we get a subsidized loan (doesn’t quite make sense, but I’ll take it). I needed to find the official COA and it isn’t what is posted as “tuition and fees.” School #1’s merit offer included IN STATE tuition, so we have no need at that school, therefore, no subsidy. </p>
<p>D2 is leaning to School #1, so I probably won’t get to take advantage of this. Silver lining…D1 is OOS at one of the most expensive public universities and I just looked at their official COA (gasp) and think we just might get a subsidized loan there. Wish me luck.</p>