School's budget - your EFC = how much you can borrow in Stafford loans; with a limit of $18.5K. Still need money? Then you can go to a major bank and borrow a loan up to the cost of your school's budget - your EFC - your Stafford loans and any scholarships. These loans have APRs that are set by the government (right now around 8%) and the difference comes down to the incentives offered by the bank; for example, APR drops .5 if you do auto-payment, etc.Need more money above the school's budget? You may be eligible for a TERI loan which is up to $30K for up to 3 years. These APRs are tied to your credit score, and will generally require a cosigner with a full-time job.For example, if your school budgets 40K, but your EFC is 30K, you can only borrow 10K in Stafford loans. If you can't pay your 3OK EFC, you'll have to borrow from a bank. If your school budgets 40K, but your EFC is 0. You can get 18.5K in Stafford loans and will need to borrow 21.5K from a bank.
Can anyone introduce me to Tony or Vinny? I need $4,000 tomorrow.
So if my EFC can "potentially" cover a school's budget (even though the parentals aren't contributing), I'm not eligible for any Stafford money?I was under the impression that virtually any citizen can borrow the $20,500/yr, and that the only difference that income or EFC makes is whether $8,500 of that is unsubsidized or not.