<p>I just submitted a correction to my FAFSA using my Mom’s 2013 tax returns, and it caused a modest increase in my EFC (about 1500). Assuming I don’t get anymore merit scholarships, that will probably leave me with a balance of ~500$ at my cheapest college (University of Michigan). If I have the choice, would it be better to take out a 500$ subsidized loan, and use that for personal expenses, or pay that out of pocket?</p>
<p>*take out a $500 sub’ loan, and use the 500 I will save on personal expenses, or pay the 500 out of pocket?</p>
<p>Not borrowing what you don’t need to borrow is always the wisest choice. However, if you do need to borrow, subsidized loans are not so bad … especially if you can pay them off before they are in repayment (since you won’t have to pay any interest if you pay before they go into repayment).</p>