More Stafford loans than you need.

I have a question:

I am seriously low income and living on my own. I'm a senior at college and
only have 2 semesters left before I graduate. I am expecting my award
package for financial aid shortly. I believe I will qualify for a Pell Grant
since my expected contribution was around < 3000.

Anyway, I wanted to know if I can take more Stafford loans out than I need.
Say I only need $1500 in a loan to pay for my tuition after grants. can I
still take up to $2500 or the maximum on a Stafford loan instead of just
what I need for my tuition? I ask this because last year I ran into big time
trouble by only taking the amount of my tuiton. Books for each semester cost
me $520 in the Fall semester and $470 in the spring semester and I had to
scratch, beg and plead to find the money. I don't want this to happen again
and would like to take out a little more than I need to guard against this.

thank you.

The award letter will tell you how much Stafford loan you may borrow,
and you may accept up to that amount. It sounds like you have been
choosing to accept only the amount needed to pay the college.

But the college defines your need differently than you do. You're just
thinking of what you have to pay the college for tuition and fees, but
when they determine your need they also include an allowance for books,
transportation, food and other miscellaneous expenses in the total Cost
Of Attendance (COA). For a full time student, the COA will typically be
a few thousand more than than just the tuition and fees. Subtract your
EFC from the COA (your school can tell you what the COA is) and that's
the maximum 'need', or aid eligibility.

For example, in my state the community college tuition and fees are
about $2,300, but for a full-time student the COA is actually about
$8,500. With a $3,000 EFC you'd be eligible here for up to $5,500 in
need-based aid. You would be offered the Pell Grant (about $1,000 on
your EFC of about $3,000), whatever grants they are giving, and the
balance in a subsidized Stafford loan if need remains.

As a senior you can get up to $5,500 in Stafford loan. If your need
after other aid leaves $5,500 it will be all subsidized (interest free).
Otherwise it may be a combination of subsidized to cover remaining
need, plus unsubsidized up to the total of $5,500. but you cannot
receive more aid in total than your COA.

In other words, it is possible to actually receive more aid than the
college bills you (up to the full COA), and that excess is refunded to
you for buying books, etc.

Just accept as much of it as you want, but remember that it is a loan
that you will have to begin repaying after graduation.

--
Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761



No One wrote:
> I have a question:
>
> I am seriously low income and living on my own. I'm a senior at college and
> only have 2 semesters left before I graduate. I am expecting my award
> package for financial aid shortly. I believe I will qualify for a Pell Grant
> since my expected contribution was around < 3000.
>
> Anyway, I wanted to know if I can take more Stafford loans out than I need.
> Say I only need $1500 in a loan to pay for my tuition after grants. can I
> still take up to $2500 or the maximum on a Stafford loan instead of just
> what I need for my tuition? I ask this because last year I ran into big time
> trouble by only taking the amount of my tuiton. Books for each semester cost
> me $520 in the Fall semester and $470 in the spring semester and I had to
> scratch, beg and plead to find the money. I don't want this to happen again
> and would like to take out a little more than I need to guard against this.
>
> thank you.
>
>