How can I get a loan ONLY for living expenses???

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givemea170
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How can I get a loan ONLY for living expenses???

Postby givemea170 » Wed Mar 28, 2012 10:37 pm

All I want is a loan for living expenses in cash that comes directly to me and I can't seem to find a loan that won't be sending the money off to the school...Can someone help me? What type of loan am I looking for? Is it even possible to get accepted for this type of loan without proof of income? I have a good credit score but won't be able to provide any proof of income for the next 3 years.

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geoduck
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Re: How can I get a loan ONLY for living expenses???

Postby geoduck » Wed Mar 28, 2012 10:42 pm

Money goes to school. Money covers school costs. Leftover goes to you for living expenses, usually direct deposit from the school. Go to liquor store and spend all your money. Rinse and repeat.

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Ded Precedent
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Re: How can I get a loan ONLY for living expenses???

Postby Ded Precedent » Wed Mar 28, 2012 10:43 pm

Jesus Christ how much money do you already have in loans?

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givemea170
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Re: How can I get a loan ONLY for living expenses???

Postby givemea170 » Wed Mar 28, 2012 10:49 pm

Ded Precedent wrote:Jesus Christ how much money do you already have in loans?


zero. I guess from the last response before yours though that if the tuition is going to be paid for, then the rest will just come directly back to me? Does that sound right?

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kapital98
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Re: How can I get a loan ONLY for living expenses???

Postby kapital98 » Wed Mar 28, 2012 10:50 pm

geoduck wrote:Money goes to school. Money covers school costs. Leftover goes to you for living expenses, usually direct deposit from the school. Go to liquor store and spend all your money. Rinse and repeat.


Yeah, that's a minimum of around ~20K. That's plenty of petty cash for housing, eating, partying, etc... If you have to take out more than 20K you may have budgeting issues :?

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kapital98
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Re: How can I get a loan ONLY for living expenses???

Postby kapital98 » Wed Mar 28, 2012 10:50 pm

givemea170 wrote:
Ded Precedent wrote:Jesus Christ how much money do you already have in loans?


zero. I guess from the last response before yours though that if the tuition is going to be paid for, then the rest will just come directly back to me? Does that sound right?


It's directly deposited into your checking account. That's a $10K deposit. It feels very good :D

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geoduck
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Re: How can I get a loan ONLY for living expenses???

Postby geoduck » Wed Mar 28, 2012 10:51 pm

givemea170 wrote:
Ded Precedent wrote:Jesus Christ how much money do you already have in loans?


zero. I guess from the last response before yours though that if the tuition is going to be paid for, then the rest will just come directly back to me? Does that sound right?


I hope it's right. Otherwise I have no idea how I've been paying rent/buying booze for the last 7 months.

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givemea170
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Re: How can I get a loan ONLY for living expenses???

Postby givemea170 » Wed Mar 28, 2012 10:52 pm

kapital98 wrote:
givemea170 wrote:
Ded Precedent wrote:Jesus Christ how much money do you already have in loans?


zero. I guess from the last response before yours though that if the tuition is going to be paid for, then the rest will just come directly back to me? Does that sound right?


It's directly deposited into your checking account. That's a $10K deposit. It feels very good :D


That sounds about right. It just seems a little strange that the school has to be the middle-man in this process when none of the loan will actually be going towards tuition but I guess if it makes the bank feel better then whatever works for them.

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geoduck
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Re: How can I get a loan ONLY for living expenses???

Postby geoduck » Wed Mar 28, 2012 10:52 pm

kapital98 wrote:
geoduck wrote:Money goes to school. Money covers school costs. Leftover goes to you for living expenses, usually direct deposit from the school. Go to liquor store and spend all your money. Rinse and repeat.


Yeah, that's a minimum of around ~20K. That's plenty of petty cash for housing, eating, partying, etc... If you have to take out more than 20K you may have budgeting issues :?


Minimum of 20k? What are you talking about? Stafford covers a certain amount then GradPLUS kicks in for the rest of the calculated expenses.

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givemea170
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Re: How can I get a loan ONLY for living expenses???

Postby givemea170 » Wed Mar 28, 2012 10:54 pm

I am pretty new to all this. I guess contacting my school's financial aid office is the best place to do this?

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givemea170
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Re: How can I get a loan ONLY for living expenses???

Postby givemea170 » Wed Mar 28, 2012 10:58 pm

The part that threw me off is this :

'The total amount one can borrow under the Federal Direct Program is $20,500. Loan amounts cannot exceed the cost of attendance minus other financial aid the student may receive, such as scholarships.'

I took that to mean that you could not get a loan for living expenses through the school.

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geoduck
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Re: How can I get a loan ONLY for living expenses???

Postby geoduck » Wed Mar 28, 2012 11:00 pm

givemea170 wrote:The part that threw me off is this :

'The total amount one can borrow under the Federal Direct Program is $20,500. Loan amounts cannot exceed the cost of attendance minus other financial aid the student may receive, such as scholarships.'

I took that to mean that you could not get a loan for living expenses through the school.


Where do you go? I'm just curious what school has such a terrible financial aid department that they don't inform you of the way most grad students pay for things:
http://studentaid.ed.gov/PORTALSWebApp/ ... udents.jsp

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givemea170
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Re: How can I get a loan ONLY for living expenses???

Postby givemea170 » Wed Mar 28, 2012 11:02 pm

geoduck wrote:
givemea170 wrote:The part that threw me off is this :

'The total amount one can borrow under the Federal Direct Program is $20,500. Loan amounts cannot exceed the cost of attendance minus other financial aid the student may receive, such as scholarships.'

I took that to mean that you could not get a loan for living expenses through the school.


Where do you go? I'm just curious what school has such a terrible financial aid department that they don't inform you of the way most grad students pay for things:
http://studentaid.ed.gov/PORTALSWebApp/ ... udents.jsp


I won't say what school simply because I haven't made up my mind yet and it probably my lack of research on this topic that has led to my ignorance. :lol:

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vpintz
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Re: How can I get a loan ONLY for living expenses???

Postby vpintz » Wed Mar 28, 2012 11:03 pm

givemea170 wrote:The part that threw me off is this :

'The total amount one can borrow under the Federal Direct Program is $20,500. Loan amounts cannot exceed the cost of attendance minus other financial aid the student may receive, such as scholarships.'

which is why grad plus loans exist.

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geoduck
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Re: How can I get a loan ONLY for living expenses???

Postby geoduck » Wed Mar 28, 2012 11:03 pm

Good call :wink:. Your school will have a 'cost of attendance' section which tells you what their accountants decide you can live on. That is how much money you will get.

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givemea170
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Re: How can I get a loan ONLY for living expenses???

Postby givemea170 » Wed Mar 28, 2012 11:07 pm

geoduck wrote:Good call :wink:. Your school will have a 'cost of attendance' section which tells you what their accountants decide you can live on. That is how much money you will get.


Since you seem to be a lot more knowledgeable in this than me... do you think it is possible to apply for direct PLUS loan after all my tuition has been paid? My situation is basically I get 50% scholarship, and then my parents have agreed to finish off the tuition and they want me to pay for it myself for any other expenses. So basically my tuition will be paid in one lump sump at the beginning of the semester.

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givemea170
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Re: How can I get a loan ONLY for living expenses???

Postby givemea170 » Wed Mar 28, 2012 11:27 pm

The reason I ask is because I only think I'll need about 10K in living expenses so I'd like to know how much I actually need and was wondering if I could apply for the plus loan maybe a month into the semester?

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geoduck
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Re: How can I get a loan ONLY for living expenses???

Postby geoduck » Wed Mar 28, 2012 11:29 pm

givemea170 wrote:
geoduck wrote:Good call :wink:. Your school will have a 'cost of attendance' section which tells you what their accountants decide you can live on. That is how much money you will get.


Since you seem to be a lot more knowledgeable in this than me... do you think it is possible to apply for direct PLUS loan after all my tuition has been paid? My situation is basically I get 50% scholarship, and then my parents have agreed to finish off the tuition and they want me to pay for it myself for any other expenses. So basically my tuition will be paid in one lump sump at the beginning of the semester.


That's tricky, but probably doable. You don't really apply, it gets lumped into your financial aid and you can decide how much to take. At least at my school and my undergrad, the financial aid goes into your student account and pays for whatever debts you have and then you can cash out your student account. So if your parents want to pay for the other half of your tuition, it should just raise the amount remaining to cash out. They'll 'pay' for the tuition by throwing their money into the pool. It may also be possible for them to directly pay for tuition alone, but I have no experience with that.

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givemea170
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Re: How can I get a loan ONLY for living expenses???

Postby givemea170 » Wed Mar 28, 2012 11:33 pm

geoduck wrote:
givemea170 wrote:
geoduck wrote:Good call :wink:. Your school will have a 'cost of attendance' section which tells you what their accountants decide you can live on. That is how much money you will get.


Since you seem to be a lot more knowledgeable in this than me... do you think it is possible to apply for direct PLUS loan after all my tuition has been paid? My situation is basically I get 50% scholarship, and then my parents have agreed to finish off the tuition and they want me to pay for it myself for any other expenses. So basically my tuition will be paid in one lump sump at the beginning of the semester.


That's tricky, but probably doable. You don't really apply, it gets lumped into your financial aid and you can decide how much to take. At least at my school and my undergrad, the financial aid goes into your student account and pays for whatever debts you have and then you can cash out your student account. So if your parents want to pay for the other half of your tuition, it should just raise the amount remaining to cash out. They'll 'pay' for the tuition by throwing their money into the pool. It may also be possible for them to directly pay for tuition alone, but I have no experience with that.


That makes a lot of sense and sounds pretty good. Considering the cost of my tuition at my school, there will probably be a huge lump of sum available for me and I'll have to resist taking it out and going on a spending spree. 8)

There is a link to apply for the direct plus loan though... so are you saying that I don't need to fill that out if I already filled out the FAFSA? I just filled out the fafsa and it said something at the end like 'you may be eligible for 20,500 in loans.'

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geoduck
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Re: How can I get a loan ONLY for living expenses???

Postby geoduck » Wed Mar 28, 2012 11:42 pm

givemea170 wrote:
geoduck wrote:
givemea170 wrote:
geoduck wrote:Good call :wink:. Your school will have a 'cost of attendance' section which tells you what their accountants decide you can live on. That is how much money you will get.


Since you seem to be a lot more knowledgeable in this than me... do you think it is possible to apply for direct PLUS loan after all my tuition has been paid? My situation is basically I get 50% scholarship, and then my parents have agreed to finish off the tuition and they want me to pay for it myself for any other expenses. So basically my tuition will be paid in one lump sump at the beginning of the semester.


That's tricky, but probably doable. You don't really apply, it gets lumped into your financial aid and you can decide how much to take. At least at my school and my undergrad, the financial aid goes into your student account and pays for whatever debts you have and then you can cash out your student account. So if your parents want to pay for the other half of your tuition, it should just raise the amount remaining to cash out. They'll 'pay' for the tuition by throwing their money into the pool. It may also be possible for them to directly pay for tuition alone, but I have no experience with that.


That makes a lot of sense and sounds pretty good. Considering the cost of my tuition at my school, there will probably be a huge lump of sum available for me and I'll have to resist taking it out and going on a spending spree. 8)

There is a link to apply for the direct plus loan though... so are you saying that I don't need to fill that out if I already filled out the FAFSA? I just filled out the fafsa and it said something at the end like 'you may be eligible for 20,500 in loans.'


Yeah that doesn't mean anything. You'll get a real financial aid statement from your school. Check with them to make sure you don't have to take anything else out.

Btw, the 20,500 is per year, not lifetime. So you might not even need GradPlus.

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givemea170
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Re: How can I get a loan ONLY for living expenses???

Postby givemea170 » Wed Mar 28, 2012 11:43 pm

If that 20,500 is before grad plus then yeah, that is all I should need. I don't anticipate needing more than 10-12K.

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Re: How can I get a loan ONLY for living expenses???

Postby GreySkyEyes » Wed Mar 28, 2012 11:45 pm

givemea170 wrote:
geoduck wrote:Good call :wink:. Your school will have a 'cost of attendance' section which tells you what their accountants decide you can live on. That is how much money you will get.


Since you seem to be a lot more knowledgeable in this than me... do you think it is possible to apply for direct PLUS loan after all my tuition has been paid? My situation is basically I get 50% scholarship, and then my parents have agreed to finish off the tuition and they want me to pay for it myself for any other expenses. So basically my tuition will be paid in one lump sump at the beginning of the semester.



Here's how the financial aid game is played. As a graduate student, you typically qualify for 20,500 a year in in subsidized-these are based on financial need-( up to $8,500 can be subsidized) loans and unsubsidized-every graduate student qualifies for these regardless of income and have a higher interest rate than subsidized -(remaining $12,000) loans. This is typically eaten by your tuition costs from the school. The school you choose to attend will have a estimated cost of attendance, take that amount and subtract the 20,500, then subtract the $ of scholarships you will receive. The amount you have left, is the amount you would qualify for in a PLUS loan.

Because you will not have used the subsidized and unsubsidized loans to pay for your tuition at all, you will first need to apply for the sub/unsub loans. If your parents are going to fork over the cash for your tuition, I don't think you'll qualify(you will need to complete FAFSA to verify) for subsidized loans.

IF that 20.5/yr does not fully cover the amount you have left from above, you will then need to apply for a PLUS loan, which is not need based, it is credit based(basically if you're credit isn't below 500 you will qualify). The PLUS loan will only cover up to the amount of estimated cost of attendance provided by the school.

These loans all have to go through the school due to new regulations that make the feds the loan provider. If you want a private loan, you'll have to go through a bank or hit up a nearly dead but relatively wealthy relative. You will accrue interest on your Unsub/PLUS loans while you are in school but will not be required to start paying on the loans until 6 months after you graduate. The bank will make you start paying almost immediately... as for your nearly dead relative, hope they drop dead before the agreed pay back timeline you discuss with them. Otherwise, your loans will be disbursed at the beginning of each semester and you will receive a "refund" check/direct deposit from your school approx. 2 weeks after the semester begins.

Edited/Corrected from earlier.
Last edited by GreySkyEyes on Thu Mar 29, 2012 12:29 am, edited 1 time in total.

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cinephile
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Re: How can I get a loan ONLY for living expenses???

Postby cinephile » Wed Mar 28, 2012 11:47 pm

givemea170 wrote:The reason I ask is because I only think I'll need about 10K in living expenses so I'd like to know how much I actually need and was wondering if I could apply for the plus loan maybe a month into the semester?


10K? What about travel expenses to get there, to get home for Christmas, to get to your summer job, to get back to school the following fall? And books, supplements, health insurance, coffee and booze?

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geoduck
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Re: How can I get a loan ONLY for living expenses???

Postby geoduck » Wed Mar 28, 2012 11:49 pm

GreySkyEyes wrote:
givemea170 wrote:
geoduck wrote:Good call :wink:. Your school will have a 'cost of attendance' section which tells you what their accountants decide you can live on. That is how much money you will get.


Since you seem to be a lot more knowledgeable in this than me... do you think it is possible to apply for direct PLUS loan after all my tuition has been paid? My situation is basically I get 50% scholarship, and then my parents have agreed to finish off the tuition and they want me to pay for it myself for any other expenses. So basically my tuition will be paid in one lump sump at the beginning of the semester.



Here's how the financial aid game is played. As a graduate student, you typically qualify for 20,500 a year in in subsidized-these are based on financial need-($8,500) loans and unsubsidized-every graduate student qualifies for these regardless of income and have a higher interest rate than subsidized -($12,000) loans. This is typically eaten by your tuition costs from the school. The school you choose to attend will have a estimated cost of attendance, take that amount and subtract the 20,500(or 12,000 if you do not qualify for subsidized loans), then subtract the $ of scholarships you will receive. The amount you have left, is the amount you would qualify for in a PLUS loan.

Because you will not have used the subsidized and unsubsidized loans to pay for your tuition at all, you will first need to apply for the sub/unsub loans. If your parents are going to fork over the cash for your tuition, I don't think you'll qualify(you will need to complete FAFSA to verify) for subsidized loans. You will still need to apply to FAFSA for the unsub loan of 12K/yr.

IF that 12k/yr does not fully cover the amount you have left from above, you will then need to apply for a PLUS loan, which is not need based, it is credit based(basically if you're credit isn't below 500 you will qualify). The PLUS loan will only cover up to the amount of estimated cost of attendance provided by the school.

These loans all have to go through the school due to new regulations that make the feds the loan provider. If you want a private loan, you'll have to go through a bank or hit up a nearly dead but relatively wealthy relative. You will accrue interest on your sub/unsub/PLUS loans while you are in school but will not be required to start paying on the loans until 6 months after you graduate. The bank will make you start paying almost immediately... as for your nearly dead relative, hope they drop dead before the agreed pay back timeline you discuss with them. Otherwise, your loans will be disbursed at the beginning of each semester and you will receive a "refund" check/direct deposit from your school approx. 2 weeks after the semester begins.


What? No. Once you do the FAFSA you don't have to apply for any individual loans. The office handles all of that. They like getting their students the money required to live.

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Re: How can I get a loan ONLY for living expenses???

Postby GreySkyEyes » Wed Mar 28, 2012 11:53 pm

What? No. Once you do the FAFSA you don't have to apply for any individual loans. The office handles all of that. They like getting their students the money required to live.[/quote]


Depends on the school. My grad school required me to complete all of it myself, my law school did it for me. But those are the basics if the person has to apply for it themselves.




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