Confused about FAFSA loan types - Subsidized vs Unsubsidized for freshman? Also grant questions!

Welcome to the world of financial aid! These aren't dumb questions at all - the system is genuinely confusing even for those of us who've been through it multiple times. For your loan question: ALWAYS take the subsidized loans first. The government pays the interest while your son is in school, which saves you serious money over time. Unsubsidized loans start accruing interest immediately (though payments are deferred). So if he needs $4,000 total, take the full $3,500 subsidized and only $500 of the unsubsidized. Regarding grants/scholarships: Yes, schools should update the aid package when new money comes in, but I've learned the hard way that you should ALWAYS proactively report any outside scholarships to the financial aid office. Some schools reduce loans first when new scholarships come in (good!), but others might reduce their own grants instead (not as helpful). You need to contact them about their specific scholarship displacement policy.

I'll add some practical tips as someone who just went through this with my daughter last year: 1. For the loans: Subsidized = government pays interest while in school. Unsubsidized = interest accumulates the whole time (about $200-300 per year on that $2k loan). Accept subsidized first! 2. YOU MUST REPORT OUTSIDE SCHOLARSHIPS TO THE SCHOOL. Sorry for caps but this is important! Schools have different policies on how they handle outside scholarships. Some will reduce loans first (best case), some will reduce their own institutional aid (worst case). Call financial aid office and ask about their "outside scholarship policy" specifically. 3. Important: You'll need to complete a Master Promissory Note (MPN) and Entrance Counseling on studentaid.gov before any loans will disburse. Do this at least 2-3 weeks before tuition is due! 4. Cal Grant notification comes separately from FAFSA. Did he create a WebGrants account to check his Cal Grant status?

subsidized is way better!! my older brother got those and i got stuck with unsubsidized and now im paying way more. the interest on mine has been adding up since day 1 of freshman year and his didnt start until after graduation 🙄

I can't believe they make this process so COMPLICATED for families!!! My daughter is in her junior year and we're STILL confused sometimes. The whole system is designed to trick you into taking the worst loans possible imo. One thing NOBODY mentioned to us: if you accept loans now but then get scholarships later, you can actually RETURN unused loan money within 120 days of disbursement with NO INTEREST OR FEES!!! The financial aid office conveniently NEVER tells families this!!! And watch out for the Parent PLUS loan trap - they'll offer you way more than you need and the interest rates are TERRIBLE compared to the student subsidized loans. They just want to get parents in debt too!!!

For anyone having trouble getting through to someone at Federal Student Aid about any of these loan questions - I recently discovered Claimyr (claimyr.com) which got me connected to a live FAFSA agent in minutes instead of waiting on hold for hours. They have a video demo of how it works: https://youtu.be/TbC8dZQWYNQ I used it when my son had similar confusion about his loans and we needed clarification on whether accepting unsubsidized loans would affect his eligibility for subsidized loans later. The agent was able to explain everything and even helped us understand how his outside scholarships would be handled.

congrats on ur sons college acceptance!! my daughter just finished freshman yr and the loans were so confusing. we ended up taking both types cuz tuition was expensive but make sure u only take what u really need. my cousins kid took all the loans they offered and now has way more debt than necessary lol

Hi! Financial aid advisor here. Quick point on your Cal Grant question - California is typically pretty good about communicating Cal Grant awards to schools, but it's not instantaneous. If your son receives a Cal Grant notification, I recommend emailing his financial aid office with the award letter to make sure they add it to his package promptly. Also, one thing to be aware of: sometimes when outside scholarships are added, it can reduce work-study eligibility before touching loans. Each school handles this differently, so definitely check their policy. And regarding subsidized vs. unsubsidized - everyone's right that subsidized is better, but there's a lifetime limit of $23,000 in subsidized loans for undergraduates. So if your son is in a 5-year program or might do graduate school, sometimes it makes sense to strategically use some unsubsidized early on.

btw if ur son gets cal grant don't forget it has GPA requirements to keep it for all 4 years!! my roommate lost hers sophomore year cuz her GPA dropped below 2.0

One more thing I learned from experience: make sure your son sets up the Parent Access Portal (or whatever his school calls it) so you can view the financial account. Many schools won't discuss anything with parents due to FERPA privacy laws unless the student specifically grants access. This caught us off guard when we had questions about my daughter's aid package and I couldn't get answers because she hadn't authorized me in the system yet.

As someone who just went through this exact situation last year with my daughter, I wanted to add a few practical tips that saved us stress: 1) Create a simple spreadsheet tracking all deadlines - loan acceptance dates, scholarship application deadlines, tuition due dates, etc. The timelines can get overwhelming fast! 2) Screenshot or print everything! Financial aid portals sometimes glitch or update information, and having records of what was offered when can be crucial if there are discrepancies later. 3) Don't stress too much about accepting loans "too early" - as others mentioned, you have that 120-day window to return unused funds. We accepted his full subsidized amount early for peace of mind, then returned $1,200 when a small local scholarship came through in July. 4) Ask the financial aid office about their "preferred" timeline for loan processing. Some schools need 2-3 weeks, others can process faster. This helps with your August 15th deadline planning! You're asking all the right questions and being thoughtful about this process. Your son is lucky to have such an engaged parent helping navigate this maze!

Just wanted to chime in as another parent who went through this process recently! All the advice here is spot on, especially about prioritizing subsidized loans. One thing I'll add that helped us tremendously: contact your son's school's financial aid office and ask if they have a "Net Price Calculator" or can walk you through a realistic estimate of what his total cost will be after all aid comes in. This helped us figure out exactly how much in loans we'd realistically need. Also, many schools have "Financial Aid 101" workshops for new families in the summer - ours was incredibly helpful and they answered questions just like yours in a small group setting. Much less intimidating than trying to navigate everything alone! The fact that you're being this thoughtful about loan types and planning ahead shows you're already on the right track. The learning curve is steep but you've got this! And remember - the financial aid office wants to help families succeed, so don't hesitate to call them directly with questions.