<p>In my estimated cost of attendance my costs seem over what I would actually use by two to three thousand. Can I redirect that extra money, or even better yet, not take one of my two loans (Federal Direct Loan Sub and Perkins) offered by my school’s FA office?</p>
<p>You can reject some or all of any of your financial aid packages, especially your loans. For example, if you offered $2000 unsubsidized loan but think you’ll only need $1000, then just take that $1000 and leave the rest. If you don’t think you’ll need any of it, then leave all of it. You can always come back and take it later if your expenses skyrocket.</p>
<p>What do you mean by “redirecting” it? You can’t use a Perkins loan to support your prescription drug addiction, for example.</p>
<p>Since I will have extra money from the housing part of my ECA, I was questioning whether or not I could redirect it towards living expenses or transportation costs. But since I can reject loans I do not think I would have to do that. </p>
<p>On a side note, my EFC is very low but my parents have the money to pay for the 5k my loans cover. If I reject the loans will the FA office get suspicious?</p>
<p>You do not need to take those loans. It will not look “suspicious” at all…assuming you were honest about your asset reporting on the FAFSA. Our kids did not take the total loans offered to them. It was never an issue.</p>
<p>Okay, thanks thumper. My family was honest about the FAFSA, its just that I have an aunt willing to loan me 5k for much less interest. How do I go about rejecting a loan offer?</p>
<p>When my kids received their financial aid, they had to accept or decline each component of it. Unless that has changed, just decline the loan…and accept the rest of the package.</p>
<p>
</p>
<p>Reach, remember that the subsidized portion of your Stafford loans are interest free until you graduate/leave school. At that point, the rate for sub loans issued for 10/11 is 4.5%.</p>
<p>So sk8rmom, as long as I pay for my direct Stafford/Perkins loans before I graduate, it doesn’t really matter?</p>
<p>On my estimated cost page, for instance, my estimated cost for room and board is 13k, but I’m looking at the plan I chose and it only costs 11k…so I just reject 2k in loans? This is the situation I was referring to in my original post.</p>
<p>Thereach…yes…take the loans you need. You do not have to take them all. I will tell you, if your school offers you $x in Stafford loans, I’m not sure how you take a lesser amount…but I’m sure there’s a way.</p>
<p>Don’t underestimate what you will need, however. Remember, you need to buy books too…and those can be costly.</p>
<p>Good idea to take only the loan amounts you really are going to need. Our son was offered both subsidized and unsubsidized loans for grad school. He NEVER took the unsubsidized loans. He didn’t need them.</p>