<p>I recently got my financial aid package back from a very expensive school I got into. My parents are quite well off and can afford to pay the tuition, so I wouldn’t to get any substantial aid back. What it turns out I got was about $3000/year in Stafford Loans and about $2000/year in work/study. However, more than $40k of the tuition is still uncovered.</p>
<p>My question here is, if I wanted to go to the school and my parents would pay the entire tuition, would I have to accept either the Stafford Loan or the Work/Study? I guess it seems kind of obvious, but I don’t know why they would put something on my financial aid result if it wasn’t really needed.</p>
<p>The Loans you have to pay back with interest and the work study you have to earn by working and putting you time in. So at the end of the day they truly haven’t given you any finaid, like a grant that would be free money. </p>
<p>So your set. Congrats and enjoy your college years!!</p>
<p>Take the Stafford Loan out and invest it (or tell your parents to invest it). Time is money, and the government is giving you interest-free money for 4 years.</p>
<p>It may be in her interest to take the loans (especially if they are subsidized and the interest is paid while she is in school), repay them while she is in school to build a positive credit rating which she will need after college.</p>
<p>No, not only do you NOT have to take the loans, you have to fill out forms and take some action to actually get them. Those loans are available to nearly EVERY college student and many colleges will offer them up to EVERY student whether they apply for financial aid or not as an option that is out there and available to ANYONE></p>
<p>Some schools offer the workstudy and Stafford loans (and the unsub are available to every student) because many parents want their children to share in the cost of their educations. If your parents don’t expect you to help pay for it, then consider yourself very fortunate, and turn down the financial aid offer.</p>
<p>The Federal Work-Study Program Participation in the program is determined by the student’s financial need and is awarded as part of the financial aid package. Part of the monies paid to the student on federal work study is subsidized by the government. Earnings are not applied directly to the tuition bill, but are used by the student to cover costs such as books, personal items, and transportation. FWSP funds may only be used on campus with on-campus employers or with approved off-campus community service employers.</p>
<p>Employment is an alternative form of funding for students who do not qualify for work-study funds, usually for citizenship reasons. Regulation of the Employment program mirrors the FWSP in that a student must show a financial need to be eligible for such funding. </p>
<p>**Non Work-Study: ** A student DOES NOT have to be awarded FWSP or EMPLOYMENT funding in order to work.These could be other jobs on campus (dining services, campus book store, etc). Salaries for these jobs are paid directly by the school.</p>
<p>I would agree with some of the other posts on this point: If the loan is subsidized, you should accept the loan, and then invest the money in a safe place. You will earn interest on the investment, but won’t owe any interest on the loan (so you should come out somewhat ahead, even considering loan fees). When you pay back the loan, you will be establishing the all-important “credit history”. I’d take the money and run (straight to the bank), if it were me!</p>