Scholarship reduces subsidized loan?

[snoggy6]

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I am in med school and every year I take out the maximum amount of Stafford subsidized and unsubsidized loans. This year I received a partial scholarship, so I do not need the full loan amounts, and my financial aid office is saying that the scholarship reduces the amount of subsidized loan I can take out, rather than unsubsidized. Why would this be? I thought you always got to take out the max ($8500) subsidized loan before taking any unsubsidized?

 

[dpmd]

Subsidized loans are a need based thing. A scholarship would reduce your need.

 

[rbnsafsadgf]

I am in med school and every year I take out the maximum amount of Stafford subsidized and unsubsidized loans. This year I received a partial scholarship, so I do not need the full loan amounts, and my financial aid office is saying that the scholarship reduces the amount of subsidized loan I can take out, rather than unsubsidized. Why would this be? I thought you always got to take out the max ($8500) subsidized loan before taking any unsubsidized?

That's a policy of your school. Most schools reduce unsub'd loans first when one wins a scholarship. Makes sure what you heard is really their written policy on the matter. That is indeed a ****ty policy, if true.

For the most part, what the other poster is talking about --sub'd loans being need-tested-- is not relevant here. Most academic scholarships when used for tuition aren't considered income. (Some fellowships and grad student support are however consider income.) Furthermore, that would impact you the next year, not the same year, since FAFSA stuff is based off of the past year.