Some income is protected in the formula as an allowance and will not be considered as possible contribution for education. This protection is based on living expenses, employment expenses, and federal and state taxes paid. A student budget is based on college expenses minus expected family contribution, and based on those factors, financial need is determined. A contribution of zero can be attributed to family size, dependency status of the student to their parents and family income. I would not take as many classes to balance out work and school, if I did not receive Financial Aid.
All students are eligible for loans.
Financial need determines whether the loan offered is subsidized or unsubsidized. A subsidized Stafford Loan is granted to students who demonstrate financial need. Interest accrued is paid by the government. An unsubsidized Stafford Loan is granted to students who do not demonstrate as much need as other students. Interest is paid by the student while attending school or may be added to the loan principal.