<p>DD has all of her first year tuition, fees, room and board covered by scholarships, however several of the scholarships are only 1 time scholarships, so she will need additional funds to cover room and board her Sophomore thru Senior years. Will she still be permitted to take out an unsubsidized Direct loan this year? If so, we’re thinking she could bank it for next year. Or will the school not permit it as all of her costs are covered?</p>
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So you daughter’s unsub. loans = lesser of ( COA - financial aid ) & $5,500</p>
<p>Do they only count direct college costs or also indirect costs, such as travel, personal expenses, books? The school’s direct costs for the year are $59,461, but they estimate total cost of $62,461 when you add in the other indirect costs. If it’s the latter, then it sounds like she could still get $3,000 for the direct loan, right?</p>
<p>All of your D’s costs arent likely covered. COA includes travel, personal expenses, and books. What is her school’s COA? She can take a loan as long as it doesnt exceed COA after scholarships are applied. </p>
<p>DD1 has a scholarship for tuition and fees, room and board. She has been able to take out direct loans for $1300 for the last 2 years and has applied again this year. The $1300 amount that she can borrow is the difference between her scholarship and the Cost of Attendance which includes travel costs, personal expenses, books. </p>
<p>Since the room and board portion of her scholarship is taxable(and this year she also had to pay “kiddie tax” on the taxable portion of her scholarship), she has used the loan to offset her taxes(approx. $1000 her freshman year, and approx. $2100 this year due to kiddie tax). </p>
<p>Your daughter’s scholarship$ + direct loan cannot exceed the COA in any given year, even if you would like to borrow more to bank for future use.</p>