How exactly does Expected Family Contribution effect direct loans?

[ZildjianKX]

Does it just change the amount that is subsidized?  So you may get less than $8,500 subsidized?  But can you still get the $18,500 no matter what?

The reason I'm asking is I have about $5,000 EFC since I worked a year before law school and want to make sure I can get the full $18,500 of direct loans.

Thanks...

[wildcataz2004]

I think you have it right.. The EFC affects the amount of subsidized loans that you qualify for- so in your case you'll only get $3500 subsidized, but then will able to get the $15,000 unsubsidized

[taxlaw08]

Does it just change the amount that is subsidized?  So you may get less than $8,500 subsidized?  But can you still get the $18,500 no matter what?

The reason I'm asking is I have about $5,000 EFC since I worked a year before law school and want to make sure I can get the full $18,500 of direct loans.

Thanks...

The subsidized portion of your loan may be school specific.  My EFC was $15K and I was awarded the maximum allowance for a subsidized stafford loan in the amount of 8,500.  In any case, I believe you should be able to get the full $18.5 in direct loans.

[ZildjianKX]

Thanks for all the replies!

[_____]

I think you have it right.. The EFC affects the amount of subsidized loans that you qualify for- so in your case you'll only get $3500 subsidized, but then will able to get the $15,000 unsubsidized

You are right, this post above is wrong.

Your EFC determines your amount of financial need.  (Need = Cost of Attendance - EFC)

The direct loan program is such that, unless you have no financial need whatsoever (ie. your EFC is MORE than the cost of attendance), you will qualify for subsidized loans.  Even then, you have a right to unsubsidized loans simply because you applied for financial aid.

Subsidized loans have a max of 8.5k per year. 

The unsubsidized loans have a max of 18.5k per year MINUS whatever you got in subsidized loans (ie. if you got 8.5k in SUB loans, you get max 10k in UNSUB loans).   This is because sometimes people do not qualify for the SUB loans (due to EFC exceeding COA), so they get only UNSUB loans.

(IE No matter what, the governement will not lend you more than 18.5k per year.  How that is divided between the two categories of SUB and UNSUB has to do with your EFC, though NO EFC will remove your right to these loans.)

You, in your case, will qualify for both unsub and sub direct loans--this is because your EFC of 5k is less than the COA (unless you are going to some ridiculously inexpensive law school I have never heard of...)