UCSB Financial Aid and Loans

<p>Are loans mandatory? I have to pay 11,450 (with all of the aid and work study) and my EFC is around 3,800 but I have around 27,000 saved up so is it possible to not take up loans and pay more than the EFC? Because if I do take the loans and only pay the EFC, I'll be nearly 11,500 in debt for my first year!</p>

<p>Just thought I would ask this since I know there might be other similar questions to this concerning financial aid :)</p>

<p>Loans are optional.</p>

<p>Although if they are subsidized the smart play would be to take them, put your savings into bonds and then pay the loans off once you get out. The reason this works is because subsidized loans don’t accrue interest until after you graduate, so the yield from the bonds is yours (I beleive there is a 1 percent loan fee, but this is less than the bond yield over four years so it still results in a net gain for you). </p>

<p>If the loans are unsubsidized avoid taking them if possible</p>