Subsidized Stafford Loan Question

[Doctora Foxy]

I'm so sorry, I'm sure this has been answered on here before somewhere, but....

If my FAFSA EFC is zero, will I automatically get the maximum $8,500 subsidized stafford loan every year?

Thank you!

 

[KyGrlDr2B]

If it's always zero, then yes. So don't work!! <img border="0" title="" alt="[Wink]" src="wink.gif" />

 

[Doctora Foxy]

That's so cool! <img border="0" alt="[Clappy]" title="" src="graemlins/clappy.gif" />

p.s. state schools rock!

 

[Dr. Kermit]

My EFC was ~3K and I still qualified for the Subsidized Stafford and even a school subsidized loan!

 

[Anath]

Kermit -- not to be nosey, but I'm always so confused by people posting high EFC's like yours. From what I was told by several financial aid officers at various schools (I called around to make sure), the EFC is determined based solely on your income. Did you just work a ton or something?

I remember reading a post by someone else who said that (s)he didn't work all that much, and still have like a $3000 efc. I just don't get how EFCs are that high if these amounts are supposed to be based solely on student income.

 

[analu]

Just to confuse the discussion...my EFC is $9000 (wife and I worked full-time last year), but I was still able to get the full subsidized Stafford loan amount. Soon to be unemployed, and with little-to-nothing in the bank, it sucked not to get more unsubsidized Stafford to reach my annual student budget... <img border="0" title="" alt="[Frown]" src="frown.gif" />

 

[paean]

Analu, that doesn't make a lot of sense. Unless you have run into the borrowing limit for Stafford loans, you should be able to take out unsubsidized loans up to the student budget or 30,000 (which ever is less). If you weren't offered them in your offer letter, call you FAO and ask for them.

 

[Dr. Kermit]

</font><blockquote><font size="1" face="Verdana, Helvetica, sans-serif">quote:</font><hr /><font size="2" face="Verdana, Helvetica, sans-serif">Originally posted by Anath:
<strong>Kermit -- not to be nosey, but I'm always so confused by people posting high EFC's like yours. From what I was told by several financial aid officers at various schools (I called around to make sure), the EFC is determined based solely on your income. Did you just work a ton or something?

I just don't get how EFCs are that high if these amounts are supposed to be based solely on student income.</strong></font><hr /></blockquote><font size="2" face="Verdana, Helvetica, sans-serif">I actually didn't think 3K was high. But, I worked part-time during school and made around $2,000 senior year second semester and then immediately went into a full-time job. I earned around $12,000 and saved part of it since I lived at home, but a large chunk went into applying to schools and interviewing.

 

[southerndoc]

You can have a high EFC (12,000 or so) and still qualify for the full Stafford subsidized loan. I've received it every year I've been in school.

 

[analu]

Hi paean, I did inquire with my FAO, which included submitting a letter stating that I was soon to be unemployed and with a daughter in preschool. My FAO stated that because I received my acceptance letter AFTER the March 1 priority deadline for aid, I was given only the student budget, minus my EFC. Basically, they refused to readjust my budget and EFC to my current situation. I'll be square NEXT YEAR, but for this year, I'm scrambling. Oh well, at least I'm in...and thanks for asking!

 

[analu]

And you're absolutely right, Geek Medic! I guess we're both proof of that!

 

[Anath]

Kermit -- I didn't make $12000, but I did make about $7500 in 2001. I worked full time during every single vacation we had from school. And my EFC was only $300. That is why I'm so confused. That's a HUGE difference between your EFC and mine.

 

[Dr. Kermit]

</font><blockquote><font size="1" face="Verdana, Helvetica, sans-serif">quote:</font><hr /><font size="2" face="Verdana, Helvetica, sans-serif">Originally posted by Anath:
<strong>Kermit -- I didn't make $12000, but I did make about $7500 in 2001. I worked full time during every single vacation we had from school. And my EFC was only $300. That is why I'm so confused. That's a HUGE difference between your EFC and mine.</strong></font><hr /></blockquote><font size="2" face="Verdana, Helvetica, sans-serif">At the time I filled out my FAFSA, I had about 3K in my savings account and a little more in my checking account. I also have a small trust fund, which would account for my higher EFC.

 

[zealous]

I made about 12K last year during school and had nothing left over due to AMCAS and bills and my EFC is 2K. SUCKS!!

 

[JEB3]

MY EFC was 11,000 and I still qualified for the full Sub and Unsub amounts.

 

[Hero]

I've been told that there is a $500 fee to get the subsidized Stafford loan. That?s like a 6% charge right there Would I have to pay this fee just once or every year I borrow the 8.5k?

Thanks,

Hero

 

[mpp]

If they charge you 6 percent up front, then you are either borrowing from a bad lender or your school is a direct lender. If you can choose your lender, there are plenty out there that will not charge you guarantee or origination fees. Or, some might charge you those fees, then give you a rebate. Lenders can charge a maximum of 3 percent origination fee and 3 percent guarantee fee. The origination fee is to process the paperwork. The guarantee fee is to provide the insurance guarantee from the federal government in case you default on your loan (then the government will pay the lender back). Stay away from lenders that charge origination and guarantee fees. You might have to investigate this information on your own because the institutions are typically not allowed to give preference to one lender over another. They can provide a list of "preferred lenders" but you can actually use anyone you wish.

Some schools are direct lending institutions. At direct lending schools, the school is loaning the money directly from the federal government and they will charge you a 4 percent origination fee (sometimes discounted to 3 percent). There is no guarantee fee with the direct lending since there is no gaurantor (you are getting your money directly from the federal government).

Call your financial aid office to find out if they are direct lending or not. If not, check with low cost lenders such as T.H.E., NowLoans, MedLoans, WellsFargo MedCAP, etc. You can find them on the internet easily and contact them directly...all that you need is their lender code to put onto the Master Promissory Note.

 

[Hero]

mpp, you've given me a lot to work with. Thanks so much!