Why to colleges prefer students to take out loans?

<p>This is the craziest thing I have ever heard, or I'm just confused. I just spoke with my daughter's financial aid person. I asked if he could raise the COA to include the computer that she will be purchasing next week. She received outside aid that covered the student loans and work study the college offered. He had not added the 750.00 ACG. He did not know that incoming freshman could receive the grant. After checking with someone else, he said she would receive it. So I asked if he could then raise the COA. His reply was he could only raise it if she took out a loan to get the computer. Why can he not raise it for the grant? This doesn't make any sense to me.</p>

<p>It could be that the grant can only be used for expenses paid directly to the college. I don’t know anything about the ACG in particular, but that’s what came to mind reading your post.</p>

<p>You definitely can have the cost of the computer purchase added to the COA. See this link explaining COA for financial aid professionals (from the .gov website)
<a href=“http://ifap.ed.gov/sfahandbooks/attachments/0809FSAHbkVol3Ch2Oct14.pdf[/url]”>http://ifap.ed.gov/sfahandbooks/attachments/0809FSAHbkVol3Ch2Oct14.pdf&lt;/a&gt;
Go to the second page
“An allowance for books, supplies, transportation, and miscellaneous personal expenses. This can include a reasonable amount, as determined by your school, for the documented rental or purchase of a personal computer that the student will use for study for the enrollment period. For example, a computer purchased in the summer for use in the fall term may be included”</p>

<p>Speak to the Director of FA - I have found the support staff are often not well educated in the finer details of the legal points of FA. Some schools will require a receipt to prove you actually purchased the computer. Good luck - go to the top of the chain.</p>

<p>PS - My daughter had an outside scholarship (awarded after FA was set) we wanted to use a portion of for a computer.</p>

<p>Our experience: COA = tuition, room/board, PLUS something for books& supplies, personal expenses and travel. So, some $ for monthly spending, an extra fee for optional class or sport, and something toward a computer- may already have been figured into the COA. </p>

<p>Books/personal/travel are school estimates. There could be a higher travel figure for students who live furthest from school. I don’t know. But, that’s COA.</p>

<p>For the parents’ fed loans, the school and lender interface- the school has to auth, among other things, the loan amount. It’s too much to explain here, but there “can be” a little fudge factor. Our FA + parent loan added to a few 00’s $ more than COA. </p>

<p>I believe what FA is telling you is- we can’t change COA, but we could have auth’d a few extra dollars on your parent loan or her loan. If you have no loans, I believe they are saying, we could add the extra you need in the form of a loan. If anyone understands this better, let me know.</p>

<p>OP … what is the Cost of Attendance? Your EFC? Your award package? If you post this info, I will try to help you figure this out (I am a financial aid officer).</p>