Can someone tell me if these have to be taken each year to accumulate. Or, for example, can you borrow $!2,000 sophomore year if you need it and didn’t borrow any freshman year. Or is it better to borrow each year if you think you’ll need it to cover junior and senior years (we’re expecting a great reduction in need based aid once siblings graduate).
No, you must take the loan each year. You can save it up if you want and it doesn’t count as an asset on FAFSA, but you have to take it each year and you can’t take all $27k the final year.
Thanks for everyone’s help… the schools offered her $2000 in a direct subsidized loan and $3500 in a direct unsubsidized loan - I’m guessing the $5500 is for both loans combined or is it $5500 for just the direct subsidized loan? Are those direct subsidized and unsubsidized loans only offered through the school? Or can she/we go somewhere else to get more money? I am new to all of this and looking for any help.
The $5500 is the combined amount allowed, and $2000 is always going to be unsubsidized, including when the sophomore loan goes to $6500 total, or jr/sr year at $7500; the rest is either unsubbed or subbed based on the EFC and other aid.
Thank you