A semester at the local Community College is about $1100. I found out today my Pell is for $1400. Is that $1400 per semester or for the year? Also, if you Pell is greater than your tuition, will you still have a loan option on your reward letter?

Who told you your Pell was $1400?
Generally, if it's an award letter it's for the entire year and even if you have enough for your tuition you do always have the loan option, it's only limited depending on what year you are in school.

bb

Mine sends the award letter out for the semester, but both semesters get the same amount.

So if they say I get $1400 Pell, $2K SL, it means I get $1400 Pell for Fall semester and $1400 Pell for Spring semester and $2k SL for Fall and for Spring each. Summer is different though. My school does base it off the fall/spring year that is traditional.

ETA: Our "award letters" however are all electronic..

I stopped by the financial aid office of the school to see if they got my FAFSA info yet. She said they just got it the day before so they hadn't sent out an award letter yet. I asked her how much I had received and she said $1400 Pell. I was kinda in a hurry so I didn't ask any more questions. Would anybody here take the student loans on the award letter to pay off CC debt if their Pell covered tuition?

We are considering taking the SL for my DH to pay off CC for the following reasons:

1. Interest Rates on SL is much better than CC interest and when you begin repayment, you may deduct the SL interest from your income taxes (subject to limitations of course, but for me I deduct ~ $2k/yr). No deduction for CC interest

2. SL payment is deferred while you're in school then you have a 6mo grace period after.

3. Since the interest rate is lower the repayment terms on a SL are more favorable and flexible in situations where you would be unable to make the payment--not so with CC's.

4. Since we are paying tuition for school for DH, we also get the education deduction for income taxes. (may not be true for those qualifying for grants).

In the fall DH will be entering his second year, all his CC's will be paid off and he's only going to work part time and go to school full time. A win-win for us.

bb

The amount of loans you can take out per year is higher for independent students, I just hope they dont lower my available loan amount because most or all my tuition is covered by Pell. I hope they consider other expenses and let me get the full loan amount(new computer, child care, transportation) I do believe one of the loans is not need based so I should at least be able to get that whole thing.

My Pell was greater that my tuition. I'm planning on taking the loans as well. DH and I will both be in school and his pay was cut this year. We're paying off CC's with the loans (though I'm a little apprehensive about that) and then living off just his checks.

I agree with the PP that is doing the same. It's win-win for us.

BTW, I *believe* I'm 2nd year and the loans are $3500/yr for subsidized.

HTH

How is your Pell grant MORE than tuition? I thought it maxed out at cost of education?

Um because the cost to attend is generally more than JUST tuition?

I think I got 1100 each semester when I was in college. Registering for classes and buying books took up half of that. The other half I got in like Nov and that was free money to me. It was to pay for any rent, gas, etc I needed if I wanted to use it on that.

With your Pell being higher then tuition, were you still offered the max Subsidized and unsubsidized loan? If you don't mind me asking, what was your EFC?

I'm graduating in less than two weeks, and my EFC has always been zero.

Tuition is cheap at my school and I usually qualified for the max Pell grant. I've gotten a refund check most semesters. For loans, I always qualified for the max. My financial aid counselor would just ask me how much (if any) that I wanted to take out. I've never dealt with unsubsidized loans, so I can't speak on those. I just took out another subsidized loan two weeks ago for personal expenses. I'm using it to help pay off my auto loan and a bit of CC debt. I agree that it's a win-win.

Most schools factor in many other costs associated with going to school into your "cost of attendance". (Transportation, housing, dependent care cost, boks, etc.) This "cost of attendance" is what they base your award eligibility off of.





And, yes, for 2nd year students (as long as you've accumulated enough credit hours to be considered a sophomore) the max unsub. is $3500.

Even if your pell is higher than your "tuition" costs, you'll be eligible for sub. and unsub. loans for upto the cost of your "attendance" costs.

Edited to add: It sounds to me like your Pell will be $1400 for the year... the only way to know for sure is to ask the Financial Aid office.

I believe how much you are offered doesnot depend on tuition, but on Cost to Attend and EFC....Cost to Attend includes housing, books, fees, tuition, etc.