If I apply for a student loan, will FAFSA decrease the amount they are awarding me?
Posted by StudentLoan on August 4th, 2010 | 4 comments
I have a remission entrance to me since FAFSA has awarded me some-more income than my fee costs. If we request for a tyro loan (which we have to do by my school), will FAFSA diminution a volume they have been awarding me?
Comments
Nope. Two really separate things. The loan people will look at how much you are getting from FAFSA, and base what they will give you from that, but FAFSA first.
Assuming you mean grants by saying FAFSA, no, they cannot. A Pell Grant MUST be awarded and paid before determining other aid. It can effect how much eligibility you have in student loans and other resources though.
You can receive aid beyond the amount of direct tuition costs, up to the amount of your Cost of Attendance. Cost of Attendance includes tuition, fees & living expenses.
Financial aid does not count as income on your FAFSA so they are not concerned with what you have already received when you apply for a loan. Just don’t borrow more than you need because you will have to pay that back later and simple money now really hurts when you graduate.
http://www.loanoaid.com
Why is your school “making” you take out a loan? Just because it was awarded to you, doesn’t mean you have to borrow it. It’s there just in case some unexpected expenses surface. You may need to question some questions at your school’s financial aid office.
If you do go on with the loan, it shouldn’t affect your fafsa as long as the money you borrow isn’t hoarded away in the bank (you have to claim savings on your fafsa). Excellent luck!