Hi everyone! I applied as a transfer student and was admitted to a private California university. I received my financial aid today, but I’m having difficulty understanding my aid package. My parents are low-income, but I knew that even if our EFC is 0 that the school would calculate it differently than what we expected.
My aid package:
Legacy scholarship: $15,000
Cal Grant: $9,084
Pell Grant: $5,815
Subsidized Direct Loan: $3,500
Federal Work-Study: $3,000
Unsubsidized Direct Loan: $2,000
Parent PLUS Direct Loan: $4,000
I don’t want to take out these loans, but it’s not possible for me to attend unless I do so. I still have three more transfer schools that are going to send me acceptances/rejections in a few weeks so I don’t have to immediately decide where to attend. But I’m confused as to why my package contains many loans.
Because most schools do include loans in their packages. This is a private school. Their funds may be limited and they can’t afford to let everyone go for free.
Is there a state school you could attend where the Pell and California grants would cover the cost? Is the private school’s tuition within $15k of the public tuition (covered by the legacy scholarship)?
The schools also will offer loans if the estimated cost of attendance is more than aid, but COA often includes costs like books and transportation that don’t need to be paid to the school and can vary from actual cost.
So to figure if you need loans, add up the direct billed costs like tuition, fees, room and board if you live on campus and then subtract all the scholarships and grantsfrom that.
That is your net price.
It can be met with savings, summer earnings and loans if needed, you don’t have to take out the whole amount of loans, take out subsidized before unsubsidized, and work study can help with expenses while at college, it’s a paycheck you get for an on campus work study job, usually 5-10 hrs a week.
Most schools include loans because you’re expected to pay for some of the costs of your education, even if it’s later thru payments…because you’re the one who will be benefiting from the education.
When you look at the student loans, those totals are about the amount of your food, books, personal expenses and travel costs. Schools tend to expect students to pay for their own food, toothpaste, pizza out with friends, clothes, etc.
You can eliminate those loans, or eliminate the Parent loans by working full time over the summer and maybe being economical with text books (buy used, rent), and being economical with personal expenses and travel costs.
Almost every school will put the Sub and unsub loans in your package. All CA publics will too. I don’t believe you will have a choice unless you get into an Ivy type school. Now the Parent Plus, you don’t take, your parent does. Or you can skip taking the loan and just pay that yourself or from your parent. If 4k is all you have to come up with that is a pretty good deal=- but we can’t tell because you didn’t include COA.