Hello 
I just finished the FAFSA. We’re going from 2 in college for the last 5 years to just 1 from now on.
The kids always qualified for subsidized loans with a 7200 EFC but now for just the one our EFC is 14,214. I just wondered if our EFC was low enough to qualify for subsidized loans?
I like to use other peoples money for free and let mine sit, hoping that can still be a strategy with last kiddo. Thanks!
EFC has nothing to do with it. What matters is if you have financial need at your college. If you do, your loan will be likely at least partially subsidized.
Roughly, take the COA-all FA/merit (including work study)-EFC= need. If there is still ‘need’ she may qualify for a subsidized loan.
Thanks @twoinanddone that was helpful! When I do your calculations above I come up with $11,108 so maybe, thanks!
If your EFC is $14214, that means the federal government expects you and your student to pay that amount before receiving $1 of federal aid, including subsidized loans. If student gets any scholarships, that will reduce need figure. Need is Official Cost of Attendance of a college minus EFC minus any scholarships. If a college gives you financial aid, that need figure in terms of getting that subsidized loans is reduced correspondingly.
For freshman year, a student can take out $5500 in Direct loans on his own. Up to $3500 of that can be subsidized loans if there is a need component.