Please explain loans

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
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Please explain loans

Postby admisionquestion » Mon Feb 27, 2012 9:03 am

Imagining I got not grant aid and needed to cover 70,000 a year to attend a given school.

I have normal KJD credit and no UR debt. Can someone break down what sort of loans might be offered for me to pay this?

Also, imagining I wanted to spend more than the budgeted living expenses--> are there other easy (but expensive) loans to take out?

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Re: Please explain loans

Postby Geist13 » Mon Feb 27, 2012 9:27 am

You get loans from the government. There are two types, Stafford and GradPlus. The only difference is that Stafford has a slightly lower interest rate, but is capped at 20,500 per year. Unless you have a scholarship, you will be taking out both Stafford and GradPlus loans. The process is very easy. You fill out the FAFSA online forms and your school basically takes care of the rest. Pretty much everyone gets approved, unless you have truly terrible credit (if that's the case, you shouldn't be taking out triple digits in more debt). Your school gives the government an estimate of how much it costs to live in the city and the gov. cuts you a check for that amount + your school's tuition. They send it to the school who sends you the remainder after taking their cut for tuition and fees.

Re: extra $$. Um, I think maybe you can ask for extra spending money. Maybe you can't. You could certainly go to a private lender if you wanted. Either way, you shouldn't; that would be stupid as shit. You get enough to live on. If you NEED more money than they give, you shouldn't go to school yet. Tie up those loose ends before starting school.

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Re: Please explain loans

Postby cinephile » Mon Feb 27, 2012 10:49 am

If you need more money than the budget, it's possible to have your budget increased, but you need a reason. For example, last year I searched and searched for a 1 bedroom that would fit within the school's estimated cost of living, but it really wasn't possible. I spoke with financial aid and they said if I sent them a copy of the lease for a more expensive rental, they would use that to recalculate my budget and I could borrow more. But in the end I found a roommate so it didn't matter.

Point of that story, you'll probably need documentation of some kind as to why you need an increased budget.

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