<p>i really cant get financial aid through my head
im gonna set up a hypothetical situation and u can explain if what i think is right
johnny got into X school. the cost of the school was roughly $50,000 with tution room and board and books and stuff
Johnny found out his EFC was $20,000
X school gave 100% aid, so they gave Johnny a $30,000 package
Johnny used scholarships, loans, and parents to pay $20,000
am i way off?</p>
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<p>Well you would have to check each school. Some schools would allow this and others would not allow the scholarship to be applied to the EFC.</p>
<p>If Johnny receives a scholarship of $10,000, it would REDUCE his NEED by $10,000. Most schools do not reduce the Expected FAMILY Contribution by allowing the use of scholarship funds from outside sources.</p>
<p>BUT having said that…there are some schools that allow “stacking” of scholarships and school based aid up to the total cost of attendance (but not higher). I don’t believe those schools are in the majority, however.</p>
<p>So…you need to check each school’s policy.</p>
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If it is a school that meets full need then Johnny may get a $30k package. It may include loans unless it is one of the few schools that promisesto meet need without loans.</p>
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It is up to Johnny and his parents how they come up with the $20k but many schools (and federal reulations) will not let you reduce the EFC by the amount of scholarships. Scholarships mostly reduce ‘need’.</p>
<p>Most likely, Johnny will get a maximum loan in his financial aid package, meaning that he will NOT be able to borrow a federal student loan to help out with the $20,000. Most schools do not give the full need in grants; usually, they combine grants & loans. You can only borrow $5500 in Stafford loans as a freshman, and if that’s what your $30,000 package includes … you have no more loan eligibity. Your option would be a private alternative loan (not easy to get these days, but they can be had). Your parents could borrow a PLUS loan. </p>
<p>As far as scholarships go, different schools treat them differently. Some reduce grants, some reduce loans and/or work study first, and some will allow you to have a certain amount of outside scholarships before they reduce the aid they award.</p>
<p>I have a question.
Cost of X school is 50000. Johnny has an EFC of 15000. But the school wants to give Johnny, say 20000. So, will Johnny be accepted and has to find more 15000, or the school rejects him??</p>
<p>Depends on the school. Schools that do not promise to meet full need (many schools) will accept a student without necessarily meeting their full need. So Johnny may be accepted but may have a ‘gap’ - a gap is unmet need.</p>
<p>Thank you!</p>