<p>If a student qualifies for a subsidized Stafford Loan as a freshman ($3500), what happens if their EFC goes up in subsequent years? Do they take the Stafford away, so that s/he might not be able to borrow the full $20,000?</p>
<p>Thanks.</p>
<p>We had the opposite situation. My D only qualified for the unsubsidized Stafford loans her freshman and sophomore years. Now, entering her junior year, her brother will be a freshman at another university, and they were both offered subsidized Staffords.</p>
<p>We paid the interest for her first 2 years to keep it from accruing for her later payment on the unsubsidized loans. It is my understanding, (and please correct me if I am wrong), that with the upcoming subsidized Staffords, the government pays the interest while the student remains in school. I am assuming that interest on the unsub. loans will continue to be her/our responsibility.</p>
<p>So to answer your question, I think you would still qualify for Stafford loans for the remaining years. However, if your EFC moves upwards too much, the loans will just become unsubsidized and interest will accrue.</p>
<p>Weenie, I think that IllinoisMom has explained it correctly. It is my understanding that multi-millionaires (no limit in income) will be offered an unsubsidized Stafford if they have filed for financial aid. Correct me if I am wrong. Oh, and you might be offered a partial subsidized Stafford (some portion that they feel will meet your need-ie: $500 in subsidized and 5000 unsubsidized Stafford in junior and senior years).</p>