Anyone used federal stafford loans for housing?

[aswedc]

I'm thinking about going to grad school full time (and not working, at least not very much, until I'm done - don't feel like going back to those $6/hr positions). I don't have much in savings, and limited credit history, so I would need the federal stafford loan to cover my housing and living costs as well as tuition. I understand the maximum yearly loan for an independent graduate student is 18k - which is more than enough if I can get awarded all of it. However, I also understand the school determines the amount rewarded based on "need", whatever that means.

So, anyone care to share how much stafford funds they were allotted for housing and living purposes so I don't have to fill out a million financial aid forms to find out the average?

 

[lykaon78]

I think "need" meeans your financial standing aka your ability to pay, not how much it takes to actually go to school.

My parents made about $50k combined and I qualified for half subsidized half unsubsidized loans for the maximum amount available. That was four years ago.

I can confirm that you are allowed to use the loans for housing.

 

[shopbruin]

well, the bf got a free tuition ride so he's using all his stafford loans for living expenses. it was based on his "need" which was based on his salary last year, which wasn't much for los angeles.

being a grad student, it is no longer based on your parent's income, so it is much easier to get the loans.

the amount is going to heavily depend on what part of the country you will be living in. we're in LA, so they gave him nearly the 18k in federal stafford loans for living expenses.

 

[Whisper]

I'm currently a grad student in Louisiana, and so I can offer a little bit of first-hand advice/experience/what have you.

As the previous post said, since you'll be a grad student, you're no longer required to list your parents' income on your FAFSA forms. This was great for me, since I only worked the last two months of 2004. I was initially awarded the full $18k; however, after the financial aid department found out about my assistantship, they reduced my total loan amount by (iirc) ~$2k-3k.

Basically, with most schools/grad programs, they have an estimated cost of attendance. This includes tuition and fees, books, anticipated living expenses, and a few other miscellaneous things. The school then looks at your FAFSA to determine how much the government thinks you should be responsible for paying (your expected contribution; you'll see it after you finish the aid forms), and offers you stafford loans to cover the rest.

Anything beyond that amount they won't certify...and most educational loans (especially the ones with decent rates) require the school to certify that the loan amount wouldn't put you over the cost of attendance.

It is possible to find non-certified loans, although the interest rates are generally higher unless you have a co-signer, a job, and/or amazing credit, depending on the loan company.

 

[Albis]

well first you file as independent from your parents and you should not have any issues getting government loans to help pay for grad school

 

[Orsorum]

I'm right in the middle of figuring out whether I want to take out a subsidized stafford loan as well, I still haven't decided (though I need to within the week). I don't need the money this quarter but I do think I'll need some starting winter quarter.

 

[Whisper]

Orsorum...if you think you'll need it, and the loan is subsidized, I'd say take it. You can always just sit on the money until you figure out whether or not it's necessary, since it won't be collecting any interesting. And if it turns out that you can get by without it, then you could just pay it back whenever you felt like it...since there's no penalty for pre-payment.

 

[Orsorum]

Originally posted by: Whisper
Orsorum...if you think you'll need it, and the loan is subsidized, I'd say take it. You can always just sit on the money until you figure out whether or not it's necessary, since it won't be collecting any interesting. And if it turns out that you can get by without it, then you could just pay it back whenever you felt like it...since there's no penalty for pre-payment.

That's what I'm leaning towards, it wouldn't hurt to have some extra savings for a quarter, just to make sure. Both my parents are retired now as well so I'd like to make sure I don't go tits-up if I have an emergency.

 

[Orsorum]

Bump.