My efc is all zeroes. If I’m correct that i means I’m eligible for the full amount of aid. My aunt told me that she would pay for the remaining cost which would mean that I wouldn’t have to take out any loans. I know that my efc is based on my assets as well as my parents assets. Since it’s 00000 I would think that they would expect me to take some loans. Would it look suspicious if I decline the loans and let my aunt pay for the cost to attend?
You can borrow the money from your aunt. Set up a contact and make sure it is a bonafide loan with a market interest rate, repayment terms and forgivable upon her death . You can take a Direct student loan for the subsidized amount and accrue no interest in it and pay your snit interest on her loans during your school years. After you complete college, your Sunny can nullify the loans.
If your ain’t gives you money, at least for the first 2 years of college, the amount is considered untaxed income to you, the student, on FAFSA. Any amount over $9k gets a hit towards your EFC which can reduce your financial aid. You should run through the FAFSA formula to see what I am talking about. You
Unless you are attending a school that meets 100% demonstrated need, or where you can probably attend without housing costs, having a 00000 EFC doesnot mean that you will attend school for free.
it means you are eligible for ~ 6000 in federal aid and California state aid. Others, @Gumbymom @ucbalumnus can chime in as approximately how much your family may have to pay (especially if you dorm).
According to your posting history, you are a transfer and was accepted to UCR, CSUEB, SFSU and UCSC as of April 2020. You would have received a FA package from each school and you should have already SIR’d to one school. So what are your numbers?
@sybbie719 I know that I’m not getting a free ride I was just saying that I’ll get all the aid that a person with 00000 qualifies for.
@Gumbymom here are my numbers for the year:
FEDERAL PELL GRANT
FEDERAL WORK STUDY
CAL GRANT B
CAL GRANT B STIPEND
FEDERAL DIRECT STAFFORD LOAN
I’ve already accepted the pell grant, cal grant B and cal grant B stipend. I looking to decline the work study and stafford loan. So if I have this correct, I would have to pay $7275 for the upcoming school year. So going back to my original question: can my aunt pay off the rest of the $7275?
She can, but then you will have to report that $7275 as a gift to you on the next FAFSA. People are offering advice on a couple of ways to avoid that.
- If you take out the loans and have her pay off the loan in your junior year, after you have filed the last FAFSA.
- If she gives the money to one of your parents and then they pay off the $7475. That works if one of your parents is trustworthy and will pay directly.
- Why turn down the work study? You may find a job you like on campus or working for a professor. Accepting it doesn't change any of your aid, and you won't get any of it until you find a job. Keep the possibility open.
- Why not take at least the subsidized loans? Your aunt could pay those off after you graduate and before the interest starts to accrue for you to pay (6 months after you stop going to school). If you are a junior, subsidized loans are $5500.
But to answer your question, yes she can pay the $7275, but you may have to report it on the FAFSA (depends on timing) and it may cost you future income based aid.
If you are a transfer student, wouldn’t your loan be more than $5500 ($6500 sophomore, $7500 as a junior/senior)
Correct ^^. @twoinanddone covered all the pertinent information.
Best of luck.
Take the loan and work study. Let your aunt repay the loan for you after you file your last FAFSA. Look for a work study job so you can earn spending money.
Definitely take the work study. Working on campus is more flexible (assuming there are on campus jobs). Research shows that college students who work about 10 hours a week actually do better in college than those who don’t.
You can use these earnings for spending money. Or books.
Thank you everyone in this forum for your help!
@twoinanddone @thumper1 I’m a little hesitant to take the work study because I really want to excel in all of my classes and I feel I may be overwhelmed by the schoolwork(17 units) and having to do work study. I also want to join a club and save some time for recreation. Maybe I overestimating the time spent on each of these activities since @thumper1 provided research to back up the work study academic performance.
@twoinanddone for your point number 2, what if I’m an independent student?
For point number 4 how do I tell if my stafford loan is subsidized? All it says in the award letter is “federal direct stafford loan”
An independent student needs to report all money received, including money from the parents so that probably wouldn’t work. Are you independent for FAFSA purposes? Your parents don’t fill out the FAFSA?
@twoinanddone I’m 26 years old and I think that if you’re over 24 you’re automatically considered an independent student.
Just let your aunt pay. Report it on future FAFSA forms. You might lose some future FA but you may not if you earn no other money on your own.
If your aunt is able and willing to pay for you, get a valid loan contract and borrow the money from her at market rates and repay he at least the interest in the loan. She can forgive the loan after you are done.
Because FAFSA uses income two years before the school year its for, you may not eve. Have to do this to avoid having to report that money as untaxed income on a FAFSA, in Enoch cadre, she can just pay those amounts without causing future financial aid issues
There are other tax implications if this happens. Making a suggestion like this without both understanding the implications and explaining them to OP can lead to problems.