<p>Out of curiosity--what, exactly, are the requirements to qualify for the subsidized federal Stafford loan? I applied for it last year and was denied, so I chose not to accept any of the unsubsidized loan. (thankfully I had the luxury, at least for that year).</p>
<p>I attend a private college that meets full need with no packaged loans. The school's family contribution was marginally--though not insignificantly--lower than my FAFSA EFC, which is solidly in the doable middle-class range; I also received outside scholarships to cover packaged work expectations (although I chose to work anyway for spending money). I'm assuming that one or both of these factors made me ineligible for the subsidized federal loan, but I'm curious as to exactly which/why.</p>
<p>Subsidized federal loans are need based loans. If your school met your need then you are not eligible for need based federal aid. Unsubsidized loans can be used toward the EFC, subsidized loans can not as the EFC is not part of need.</p>
<p>For instance if a school costs $20,000 and a student has an EFC of 5000 then their need is $15000. Subsidized loans can be used toward that $15000 of need. But if the student receives $14000 in grants and or scholarships then their need is 15000-14000=1000. So eligibility for subsidized loans would be $1000 - the remaining need. If the student received the full $15000 in grants and scholarships then their full need has been met and there is no eligibility for subsidized loans.</p>
<p>I see, thank you for the excellent explanation!</p>