<p>I think you mean Subsidized Stafford Loan, not Pell Grant.</p>
<p>Blue and Gold covers systemwide tuition, roughly $11k. UC knows that there are other expenses involved, including room and board, transportation, etc, so they account for that and provide you a way to finance it.</p>
<p>I could be wrong, but as I understand it a subsidized loan doesn’t cost to anything while you’re a student. So if you take out the $5,500 and don’t spend it, you could pay back the exact same $5,500 after you graduate. It would just be a nice, free buffer for unexpected expenses.</p>
<p>Your larger question is “Why take out loans you don’t really need?” I agree: that’s dumb, unless it’s free money for emergencies only (like above). Thats why you’re able to decline loans.</p>