Question about student loans

archcommus

Diamond Member
Sep 14, 2003
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Right now I am a sophomore living in a University suite with a University meal plan. I forked out a few thousand of my own cash, and the rest was grants (free) and loans (all federal).

For the next two years I intend to live in an apartment. Rent + utilities + grocery costs should be around $680/month for my share. It would be very difficult for me to pay for this each month out of my paychecks. Are there any student loans, federal or not, I can get that come to ME in the form of a check instead of straight to the school, so I can use it for these purposes? I define a "student loan" as any loan where repayment is deferred until six months after I graduate.
 

Zolty

Diamond Member
Feb 7, 2005
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I would contact your financial aid person to see what they can offer in your situation.
 
Mar 11, 2004
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Well on the FAFSA you can designate that you'll be living off-campus and they'll probably up the amount you can get for loans.

I wouldn't doubt you could contact any number of other financial institutions and see if they'll offer you any type of student loan as well.
 

BigJ

Lifer
Nov 18, 2001
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Student loans are for the complete cost of attendance. Meaning that it includes tuition, room and board, transporation, meal plan, and books. Just because you don't want to live in university housing doesn't mean you can't use financial aid to pay for living expenses associated with college.

What happens is that you apply for your student loan including the associated costs of living off campus. Depending on your lender, either you or your school will receive the check.

If you receive the check, then simply cash it and pay them your tuition; the rest is yours.

If the school gets it, after the loan is disbursed, you will be issued a refund by the Bursar and can use that toward living expenses. The only thing you have to worry about with this option is that you have to cough up your first month's living expenses out of pocket due to disbursement dates varying.
 

SarcasticDwarf

Diamond Member
Jun 8, 2001
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Here's how it generally works: The money goes to the school. The money is FIRST used to settle any debts with the school. A couple weeks later they cut you a check for the remainder.
 

archcommus

Diamond Member
Sep 14, 2003
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Originally posted by: BigJ
Student loans are for the complete cost of attendance. Meaning that it includes tuition, room and board, transporation, meal plan, and books. Just because you don't want to live in university housing doesn't mean you can't use financial aid to pay for living expenses associated with college.

What happens is that you apply for your student loan including the associated costs of living off campus. Depending on your lender, either you or your school will receive the check.

If you receive the check, then simply cash it and pay them your tuition; the rest is yours.

If the school gets it, after the loan is disbursed, you will be issued a refund by the Bursar and can use that toward living expenses. The only thing you have to worry about with this option is that you have to cough up your first month's living expenses out of pocket due to disbursement dates varying.
Thanks, everybody. Makes me feel a lot better. I was worried student loans were only for things related directly to the school and that you could never see the money yourself.

Really helps open up my options, too, and most places end up being cheaper than University housing and food!
 

Cuda1447

Lifer
Jul 26, 2002
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My girlfriend got a student loan to pay for tuition and living on campus and she said she got a check written to her in the mail. She just went and deposited it into her regular checking account, no questions asked. She is pretty sure it was a private loan, from Bank of America. If you just go to any bank's website, they tell you if it goes to you or the school.
 

PHiuR

Diamond Member
Apr 24, 2001
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Originally posted by: Cuda1447
My girlfriend got a student loan to pay for tuition and living on campus and she said she got a check written to her in the mail. She just went and deposited it into her regular checking account, no questions asked. She is pretty sure it was a private loan, from Bank of America. If you just go to any bank's website, they tell you if it goes to you or the school.

Try not to borrow from a bank if you can...The interest rates are usually better and depending on the loan, there will be no interest until you graduate.
 

archcommus

Diamond Member
Sep 14, 2003
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Thing is, when I filled out the FAFSA in the past, I really don't remember ever entering "estimated costs." Is that because I was checking on campus residence, and when I check off campus it'll offer an option of entering estimated costs?
 

BigJ

Lifer
Nov 18, 2001
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Originally posted by: archcommus
Thing is, when I filled out the FAFSA in the past, I really don't remember ever entering "estimated costs." Is that because I was checking on campus residence, and when I check off campus it'll offer an option of entering estimated costs?

On FAFSA, I believe they only give you the option of living with your parents or on your own.

But anyway, for things outside of Federal Aid as in Private Loans, you look at your college's costs including room and board. You can borrow up to that amount from your lender. For example, tuition cost at my campus is ~ $6k per year, and then another $12k for room and board. I could borrow up to $18k whether I live on or off campus.
 

msparish

Senior member
Aug 27, 2003
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Originally posted by: archcommus
Thing is, when I filled out the FAFSA in the past, I really don't remember ever entering "estimated costs." Is that because I was checking on campus residence, and when I check off campus it'll offer an option of entering estimated costs?

You don't have to do anything. The school submits an estimated cost to the government, and it's usually pretty reasonable. You can get the information from your financial aid department or probably on your school's website.
 

Aimster

Lifer
Jan 5, 2003
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you can use private student loans to do whatever the hell u want

salliemae.com

but your school has to approve the loan amount
 

archcommus

Diamond Member
Sep 14, 2003
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Originally posted by: BigJ
Originally posted by: archcommus
Thing is, when I filled out the FAFSA in the past, I really don't remember ever entering "estimated costs." Is that because I was checking on campus residence, and when I check off campus it'll offer an option of entering estimated costs?

On FAFSA, I believe they only give you the option of living with your parents or on your own.

But anyway, for things outside of Federal Aid as in Private Loans, you look at your college's costs including room and board. You can borrow up to that amount from your lender. For example, tuition cost at my campus is ~ $6k per year, and then another $12k for room and board. I could borrow up to $18k whether I live on or off campus.
Well, I am primarily concerned with how it's going to work with federal loans, because this year I only used federal loans and that was enough, and I'd like to continue that if possible.

For example, this year. Tuition was about $12k, room and board (on campus) was about $7k, about another grand in miscellaneous stuff, for a total of around $20k. I got $6700 in grants, $10k in federal loans, and the rest I paid in cash.

Next year, we might be looking at around $13.5k for tuition, and around $6500 as estimated costs for apartment rent, utilities, and food. How is the federal government going to get that $6500 figure so I am ELIGIBLE for the same amount of grants and loans as I was this year?

Hope that's clear for you.
 

BigJ

Lifer
Nov 18, 2001
21,335
1
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Originally posted by: archcommus
Originally posted by: BigJ
Originally posted by: archcommus
Thing is, when I filled out the FAFSA in the past, I really don't remember ever entering "estimated costs." Is that because I was checking on campus residence, and when I check off campus it'll offer an option of entering estimated costs?

On FAFSA, I believe they only give you the option of living with your parents or on your own.

But anyway, for things outside of Federal Aid as in Private Loans, you look at your college's costs including room and board. You can borrow up to that amount from your lender. For example, tuition cost at my campus is ~ $6k per year, and then another $12k for room and board. I could borrow up to $18k whether I live on or off campus.
Well, I am primarily concerned with how it's going to work with federal loans, because this year I only used federal loans and that was enough, and I'd like to continue that if possible.

For example, this year. Tuition was about $12k, room and board (on campus) was about $7k, about another grand in miscellaneous stuff, for a total of around $20k. I got $6700 in grants, $10k in federal loans, and the rest I paid in cash.

Next year, we might be looking at around $13.5k for tuition, and around $6500 as estimated costs for apartment rent, utilities, and food. How is the federal government going to get that $6500 figure so I am ELIGIBLE for the same amount of grants and loans as I was this year?

Hope that's clear for you.

I believe (but am not sure) that they would still cut you a refund check so you could use that to pay your rent and other living expenses. Your best bet is to call your Financial Aid office.
 

Jeff7

Lifer
Jan 4, 2001
41,599
19
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Originally posted by: Zolty
I would contact your financial aid person to see what they can offer in your situation.

Yes, it may depend on the kind of loan and your college.
I get grants and subsidized loans right now, and since I'm in a campus apartment, I don't need to buy an expensive meal plan ($1500+ per semester for the bare minimum meal plan, which can feed an elementary school student). The grant and loan money goes right to my bursar account, and if there's anything extra, the college sends me a check for the amount. I intend to put that money into a CD at ING. It's an interest free loan until a few months after I graduate, so I might as well earn interest on it in the meantime.