<p>Son’s school awards him grant money and subs Stafford and workstudy and then suggests that he borrow an additional 5K from alternative loan sources (not through the school). My wife has friends who say that it is a good idea to borrow what is suggested as if you don’t, the school will figure (next year) that student (or family) had the resources without the need for loans. I am tempted to just pay (through installment) the 5K and avoid son taking the loan, but do not want a negative effect next year on son’s or family’s need - as my income is variable. Any thoughts? Thank you. Son is sophmore at Ivy, if that makes a difference.</p>
<p>Just guessing but I assume they calculate your Net Worth so it doesn’t matter one way or the other.</p>
<p>How would they even know whether you borrowed the money or not? If it was borrowed from an outside source it would not show up on the bursar account as a loan - just as a payment by you - same as if you are paying it by installment.</p>
<p>Some of the loan sources pay directly to bursar. PLUS does certainly and I think SallieMae and NellieMae do, as well. I agree, some are direct loan payments to my son or us and wouldn’t I guess, but as I say PLUS pays direct to Bursar.</p>