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Awarded Stafford sub but not unsub loan

thatgirltoothatgirltoo Registered User Posts: 429 Member
One of the schools that has accepted me has awarded me a Stafford subsidized loan, but not a Stafford unsubsidized loan. In my opinion, this is odd because the other two schools that have accepted me have both awarded me Stafford sub and unsub loans. I am an independent transfer student with an $18k EFC, but that will change after starting school in the fall and quitting my job (my firm won't allow me to modify my hours or work part time; but also, if I attend this school it is OOS and I'll have to move). I do plan on talking to the FA office at this one particular school to see why they didn't award the unsubsidized loan, but I would like to know if anyone else has been in this situation and if so, what was done about it. Am I relegated to taking on personal, higher interest loans, or is there a chance they will reconsider and award the Stafford unsubsidized loan? I know I'll have to take out some loans and will have to work part time, but with only two years of school left and no education debt yet, I'm OK with that, but if I can get a better interest rate, I'm all for that.
Post edited by thatgirltoo on

Replies to: Awarded Stafford sub but not unsub loan

  • MattsMomFLMattsMomFL Registered User Posts: 802 Member
    I think you may be confusing the two different kinds of loans.

    There are two categories of Stafford loans: subsidized and unsubsidized. The difference between the two is the amount of interest you pay on the loan.

    Subsidized loans are those loans for which the government pays the daily interest your loan builds while you are enrolled on a half-time or greater basis and during any approved periods of deferment or forbearance. The government distributes subsidized loan amounts based on financial need.

    Unsubsidized loans are those loans for which you, the borrower, have to pay all accrued interest. The government does not offer any assistance relating to interest payments for unsubsidized loans
  • thatgirltoothatgirltoo Registered User Posts: 429 Member
    I'm not confusing the two, I understand how they work. However, as far as I can tell, the unsubsidized loan has a lower interest rates than private loans. Also, as far as I can tell, one can be "awarded" both types of loans in a blend, although I'm not completely sure what the total can be for one year ($10,500 for an independent junior?). I'm just not sure why I would only be given the choice of the subsidized loan, and not both, since I'm going to need a lot more than the $5500 yearly limit for just the subsidized loan, at least for this first year.
  • mominvamominva Registered User Posts: 2,807 Senior Member
    It was my understanding that the Stafford loan limit was $5500 for junior year of either subsidized or unsubsidized. If the school award leaves you with an expected contribution from loans of $5500, then you would get only one.
    If you needed more money, any additional loan amounts would be private (or PLUS).
  • thatgirltoothatgirltoo Registered User Posts: 429 Member
    Ok, thanks. I'm going to call the FA office tomorrow because one school did offer me $10,500 in Stafford loans, blended between sub and unsub, which is why I'm confused about it.
  • ferryboat10ferryboat10 Registered User Posts: 636 Member
    Thatgirl, as an independent student you're allowed to take out a maximum of $10500 ($5500 in subsidized) in your junior year. It is dependent students, whose parents do qualify for PLUS loans, that are capped at $5500 in their junior year. See FinAid | Loans | Student Loans

    Call the FA office. You may be entitled to unsubsidized stafford loans, but they may choose not to offer any counseling on the matter until the student asks. Student loans and preferred lenders have been touchy issues that FA offices have had to dance around in recent years.
  • kelsmomkelsmom Super Moderator Posts: 14,558 Super Moderator
    thatgirl, was there a gap in your package (that is, was Cost of Attendance - EFC - financial aid awarded = greater than 0)? If not, they would not have included the subsidized Stafford in your package, because you didn't have a calculated need. You would still be eligible for an unsubsidized Stafford up to $5000 --- it's just that it wouldn't be something they'd tell you on your award letter, because your need was technically met.
This discussion has been closed.