<p>I am going back to college as an older student. I just received my financial aid package which is much more than I anticipated. </p>
<p>My expenses are covered by the generous grants I received. In addition to grants, I received a small, federal loan which is subsidized. My question: should I take the loan, even tho' I don't need it right now?</p>
<p>First, there is no telling what my financial aid package might look like a year from now. I might need the money but not get it. My option would then be to apply for non-subsidized loans. Also, I am concerned that if I don't take all of the money offered to me, my school might offer me less next time. </p>
<p>In general one should never take a loan if it is not needed. You might put a call into the school’s office and see what their policy is if you decline the loan now and then get to mid year and are reconsidering. </p>
<p>Colleges offer a wad of loans all the time. Our S could have borrowed a full year’s worth of money (well, loans for him and loans for us). The College doesn’t know much about your life so they do offer a lot of loans (for which the loaner is going to make some money). Don’t take loans you don’t need! </p>
<p>And no one, ever, knows what the fin aid package will be a year down the road. Things change – so live very, very carefully until the day you collect your diploma and start the new job.</p>
<p>Olymom, thank you for responding to my questions. While I agree that it’s better to not take a loan if it is not needed, I also agree with your point that no one knows what financial aid packages will look like in the future. That is precisely the reason I wonder whether I should take a loan NOW that may not be offered next year. </p>
<p>I live off-campus with other students in – well, it’s a dump but it is very cheap. That is why the grants I’ve been offered are sufficient for me to get by on. As an example, if I lose my Pell grant next year, I would need a loan. </p>
<p>Again, this is a subsidized Federal loan. If I understand the terms of the loan correctly, I am not charged interest on the loan until after I graduate. If I need a loan in the future, this is the type to have – and it is offered to me this year, but might not be next year. (Throw in the added confusion of the impact of possible Federal budget cuts on financial aid.)</p>
<p>Take the loan. You’re right…you don’t know if you’ll need it later. Make sure the part you take is subsidized…sometimes part of the loan is unsub.</p>
<p>I got this advice from a friend of mine who’s 3 daughters are in college all on their own. Had my S got a sub loan, we would have had him take it.</p>
<p>Well…since the loan is subsidized…you could take the loan…but DO NOT SPEND THE MONEY unless you need to. If your financial aid is adequate next year…pay off the loan.</p>
<p>I returned to college as an older student for a post-bacc program. I was also offered a subsidized loan. I took it, although probably could have managed without it. Turns out to have been a very good choice, for a number of reasons. I may still pay off the balance before it accrues any interest, but it did give me some much needed flexibility for some unexpected financial demands that I didn’t see coming at the time I took it out.</p>
<p>Just understand that if you don’t use the money, it is an asset that you have to report on your financial aid forms for the next year… That can reduce your financial aid. Since the loan is subsidized, it means that you qualify for it as need.</p>
<p>OP – If your housing arrangement turns out to be unworkable, eg, is worse than a dump with problems your landlord won’t fix in a timely way; your roommates drive you crazy and don’t permit you to sleep or study, etc. that loan will give you some flexibility. But yes, remember that if you don’t spend it that it will be counted as an asset next time when you file for financial aid. This means that if it looks like it might be left over, you might want to get that deferred dental work done before it turns into something $$$ or get the car repaired before it turns into something $$$$, etc.</p>
The student asset question instructions say not to include money that is from financial aid. My daughter gets a financial aid refund that is in the bank (to pay the rest of the semester’s rent and food) when she files FAFSA. She does not report that money on FAFSA, per the FAFSA instructions. Any other money she has is reported, but it is not usually much.</p>
<p>Also, the value of it as an asset if it’s still in the bank will also have no effect on you financial aid if your combined assets are below the protected amount… and mine are WAY below that amount. ;)</p>
<p>Plus, yeah, you don’t report financial aid anyway.</p>
<p>“Also, the value of it as an asset if it’s still in the bank will also have no effect on you financial aid if your combined assets are below the protected amount.”</p>
<p>Student assets have no protection; that only applies to parental assets.</p>
<p>That depends. I am an older student and I have some asset protection. I believe it has to do with whether or not the independent student has kids.</p>