EFC, merit aid, and Stafford Loans

Paying for College
1

Let’s say you’re dealing with the following numbers:

College tuition/room&board/fees = $40,000
Merit award(s) = $31,000
Total out of pocket expense = $9,000
EFC = $10,000

Is the student eligible to receive a Stafford loan (or any need-based aid for that matter) if a merit award brings the cost of attendance down to below the expected family contribution?

Thanks!

2

If the student/family fill out the FAFSA, he will be eligible for the $5500 stafford loan. It might be unsubsidized.

3

Thanks, that makes sense.