EFC and Stafford loan information

[mlwarner]

Help! I don't understand my EFC and Stafford loan information? After completing my FAFSA my EFC is O. Does that mean I will receive a federal grant for all my tuition and books? And if so, where will the money from my Stafford Loan go? Will I receive that money?Please help, very confused. Thanks in advance.

[princess_anna57]

When I had my Stafford Loan for graduate school, I received checks from my Financial Aid office, but I had them directly deposited so that I could write checks for my tuition.The best thing to do is to speak with a counselor at your institution's financial aid office. I had to have someone break everything down for me in layman's terms since I was applying for loans on my own. They will be able to help you out with whatever your financial aid needs are!

[syphongalaxy]

A 0 EFC is very good. It means your cost of schooling will be entirely funded by something. It may be grants, scholarships, or loans. Odds are it will be a combination. By the way, any Stafford loan you get you should take whether you need the money or not. You can't beat 0% interest for 4 years.As for where your money goes, it varies with each school. The school's financial aid office will get your money. They will probably pay your tuition and fees with it and then send you a check for whatever is left over. However, not all schools do that. Check and make sure, because most loans aren't received until after the payment date has passed.

[wvshriver]

No. A "zero EFC" does not mean that your costs will be covered entirely by grant money (Pell or otherwise). It may mean that you are eligible for a Pell Grant, but you need to review your "SAR" and your "ISIR" with someone at your Financial Aid Office to be sure. The ISIR is the report that your FA Office gets after you submit your FAFSA. The Stafford Loan(s), should you decide to take them out, will be obtained through your school and disbursed by your school and applied to the term charges on your account, every term. Any excess that is left over after the term charges have been paid is called a "Credit Balance" and will be returned to you, unless you dont want it back and want it left on account. So for instance, if the term tuition/books charges are $3000 and you receive a Pell Grant disbursement for $2025 (which is 1/2 of a full award for two semesters), and $1750 in your subsidized stafford disbursement (which is 1/2 of a full SUB loan for two semesters), you would get $775 back in cash. Of course you can take out more loan money your first year, up to 4000 additional in an UNsubsidized stafford loan, which would give you an additionl $2000 per semester to use for rent, beer, cigarettes, or bar cover charges. Remember these examples are just examples. There are too many variables involved in this question and you need to visit with your School's financial aid office to get the details.My advice is to only borrow what you know you will be able to pay back. Go for the Grants first and be sure to check out any state programs that may be offered. Many states offer grants as well.