Federal Loan Question...

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
onetimeonly95
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Joined: Wed Jul 22, 2009 5:25 pm

Federal Loan Question...

Postby onetimeonly95 » Wed Aug 04, 2010 3:07 pm

Tuition at the school that I will be attending is about $40,000. But I will be paying about $10,000 each year because of a large scholarship. Now, I know that as a graduate student you take a federal loan out for up to about $20,500 per year. My question is: would it be possible for me to take the extra $10,000 for living expenses (rent)? Would I get a refund check in that amount? Or will the federal loan only cover tuition?

bex
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Joined: Mon May 18, 2009 11:53 am

Re: Federal Loan Question...

Postby bex » Wed Aug 04, 2010 3:13 pm

You can take a GradPlus Loan for the cost of attendance, which is determined by the school, minus any other aid. I think it goes to the school and the school gives you the extra money, but maybe that's just how my school does it. You should check out the school's financial aid website or speak to someone. This can be used for living expenses, books, etc.

Here is the website for the GradPlus loans:

http://studentaid.ed.gov/PORTALSWebApp/ ... udents.jsp

Endgames
Posts: 12
Joined: Sat Jul 10, 2010 2:47 pm

Re: Federal Loan Question...

Postby Endgames » Wed Aug 04, 2010 3:21 pm

I'm interested in this question too. So the above poster said that you could take grad plus loans, but is it not possible to use federal loans for COL. I'm wondering because I have no credit, and was wondering if I got a scholarship that covered most of tuition could I use a fed loan to cover everything else. This way I wouldn't need a co-signer on my loans.

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Nom Sawyer
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Joined: Sun Jun 14, 2009 1:28 am

Re: Federal Loan Question...

Postby Nom Sawyer » Wed Aug 04, 2010 3:32 pm

Endgames wrote:I'm interested in this question too. So the above poster said that you could take grad plus loans, but is it not possible to use federal loans for COL. I'm wondering because I have no credit, and was wondering if I got a scholarship that covered most of tuition could I use a fed loan to cover everything else. This way I wouldn't need a co-signer on my loans.


Yes, even if you have a scholarship your still eligible for the basic federal loans that are offered to most students attending graduate school. You would just sign up for them through your school and they would give you a refund of the portion above Tuition to cover your COL.

For more information and details about how much you can get: viewtopic.php?f=22&t=124530

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blurbz
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Joined: Mon Jun 29, 2009 10:43 pm

Re: Federal Loan Question...

Postby blurbz » Wed Aug 04, 2010 3:36 pm

Endgames wrote:I'm interested in this question too. So the above poster said that you could take grad plus loans, but is it not possible to use federal loans for COL. I'm wondering because I have no credit, and was wondering if I got a scholarship that covered most of tuition could I use a fed loan to cover everything else. This way I wouldn't need a co-signer on my loans.



GradPlus loans are federal loans and you can use federal loans for COL.

Look at it this way:

If tuition is 40,000 a year and, just for the sake of the discussion, cost of living is 20k a year, your total Cost of Attendance (COA) is 60k a year.

It sounds like your school has offered you a 30k/year scholarship. This will bring your COA down to 30k a year and your school will offer you exactly that in federal loans. The loans will be broken up (approximately) as follows:

8.5k subsidized stafford loans
12k unsubsidized stafford loans
9.5 grad plus (unsubsidized)

You can accept as much or as little of each of those as you want.

Endgames
Posts: 12
Joined: Sat Jul 10, 2010 2:47 pm

Re: Federal Loan Question...

Postby Endgames » Wed Aug 04, 2010 3:38 pm

Nom Sawyer wrote:
Endgames wrote:I'm interested in this question too. So the above poster said that you could take grad plus loans, but is it not possible to use federal loans for COL. I'm wondering because I have no credit, and was wondering if I got a scholarship that covered most of tuition could I use a fed loan to cover everything else. This way I wouldn't need a co-signer on my loans.


Yes, even if you have a scholarship your still eligible for the basic federal loans that are offered to most students attending graduate school. You would just sign up for them through your school and they would give you a refund of the portion above Tuition to cover your COL.

For more information and details about how much you can get: viewtopic.php?f=22&t=124530


Thank you very much.

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Nom Sawyer
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Joined: Sun Jun 14, 2009 1:28 am

Re: Federal Loan Question...

Postby Nom Sawyer » Wed Aug 04, 2010 3:41 pm

Endgames wrote:
Nom Sawyer wrote:
Endgames wrote:I'm interested in this question too. So the above poster said that you could take grad plus loans, but is it not possible to use federal loans for COL. I'm wondering because I have no credit, and was wondering if I got a scholarship that covered most of tuition could I use a fed loan to cover everything else. This way I wouldn't need a co-signer on my loans.


Yes, even if you have a scholarship your still eligible for the basic federal loans that are offered to most students attending graduate school. You would just sign up for them through your school and they would give you a refund of the portion above Tuition to cover your COL.

For more information and details about how much you can get: viewtopic.php?f=22&t=124530


Thank you very much.


No problem.. in your case you probably want to accept just the Stafford loans as they give you the best terms (and the Perkins Loan if your school offers any of those).

The GradPLUS loan is quite a bit more expensive in comparison to those two. Oh and I sent you a PM, check your inbox. Hope this helps!




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