But it is $4500 in “merit aid” off of 11K COA correct? You still are having to pay $6500 that isn’t covered by merit or need-based aid.
Oh, I see what you’re saying. It’s 6,000. So if there’s any COA which, you must pay you still qualify for some amount of unsubsidized loans? It’s going to be 6,000 at the discounted rate, which means I can borrow up to, 6,000 because that is the COA? Is that correct? Again I know this is all best guess, but I have to wait until Monday to actually call.
Yes, as long as the school is accredited and gives federal aid you should be able to get unsubsidized loans to cover unmet need up to the loan max.
Ok, thank you.
Are you a freshman? If so, your Direct Loan limit is $5500 not $6000.
No, Sophomore, but I’ll actually be a junior by the time my spring term comes around.
If you are a second year college student, you can borrow $6500.
If COA is $11k for the year, with $2k factored in for books and supplies, and you get a discount off of the tuition so that your net cost is $6k, you can borrow $6k. Yes, your discount comes off of the COA just as financial aid or merit money would. So you can borrow up to what you pay as long as it’s below the COA. If your net cost is below your EFC , then none of the loans will be subsidized.
The school will be handling your Direct Loan which will be funneled through them. They will take out what you owe them, and give you the rest. There will be a remainder for books, supplies, etc. If you can get those items below what the allowances are, you can pocket the money. But you will not get loan money for the discount you were given, unless it’s some exception I’ve not encountered
My father worked for an educational system so that my tuition was paid for that school. So my allowable loan amount in such a scenario would have been COA - Tuition Waived. I would not have been allowed to borrow any part of COA that was covered by the tuition waiver. If Id gotten a scholarship on top of that, I would not have been allowed to borrow the dollar amount covered by that scholarship either. If I had no tuition waiver but a merit scholarship that covered the tuition, again, I would not be able to borrow the amount covered by that award.
So if you are asking if you can take out a loan for amounts covered by your tuition waiver/discount, the answer is NO.
So, if my discounted tuition is 6,000, this includes books, etc… I can borrow up to 6,000 in unsubsidized loans because it is below my efc? What if it was more for example: it was 9,000, but it was above my EFC?
To make it clear I only want to borrow what I owe the school not more. So I have a 6,000 dollar COA which is my current COA because of the discount, I can borrow up to 6,000?
Yes…you can borrow the $6500 unsubsidized loan to pay the balance of your bill. But check with YOUR college…you need to let the financial aid office know you want that loan so you can receive it. Do that Monday morning.
I agree that if you owe $6k, you can borrow $6k ( if you have at least sophomore standing). Because your EFC is over what you have to pay, it will be unsubsidized. If you owed the school more than your EFC , that portion of the loan up to limits could be subsidized (no interest while in school at least part time, and grace period )
What is tricky here is that the COA for your program is $11k. But the tuition amount is $9k with $2k for other costs such as supplies and books. You get a discount on the tuition. So that discount is subtracted from the COA as your personal COA for which you can take a Direct Loan up to the limit if that loan. If that net amount is less than or equal to your EFC, none of the loan can be subsidized. If it is more, than that portion can be subsidized
Sorry, I’m still a bit confused, are you saying that because the original COA is 11,000, and the new COA is 6,000 that I would really only qualify for 1,000 in loans? So if it’s 11,000-5,000 that would equal the 6,000 dollar rate. Because it’s a 5,000 dollar subtraction of merit aid, would that only leave me with a 1,000 dollar amount left of aid? I’m sorry if I’m making this difficult.
Ok, I completely understand, what you’re saying now. I’m not so much concerned with whether the loan will be subsidized or unsubsidized, as I am whether or not I will qualify for a loan.
What is your discount? The full dollar amount of your discount? The COA is $11k.
Your revised COA would be $11k- Discount.
If your discount is $11k, then you do not qualify for a Direct Losn
If your Discount is $5k, then you may borrow $6k (as long as you have at least sophomore standing ).
The reason I’m receiving one? My father is a veteran of the navy.
No, the discount is not a complete tuition waiver, it is a reduction in the amount. So it isn’t 11,000 down to zero. It’s 11,000 down to 6,000
So your discount is $5k. The school online COA is $11k. So you have $6k left as your COA. You can borrow up to $6k (if you meet the criteria). Even if you do not spend all of that $6k that may include supplies, books, you can still borrow Up to that COA
Again, it needs to be verified with fin aid because things could have changed, but given the info you have presented, you can take a $6k unsubsidized Direct Loan
Ok, thank you. Sorry for the confusion.
Your eligibility for unsubsidized loan: COA - all aid (scholarships, grants, tuition discounts) = amount remaining for unsub loan (up to annual max for year in school, but less than the annual max if the amount remaining is less than the annual max). EFC does not come into play for unsub loans. However, the total of all resources, which includes grants, scholarships, tuition discounts, and loans, cannot exceed COA. So if you have a tuition exemption, your resources include that exemption.