When to take out loans before starting your first yr Forum

[mbkc03]

I'm set to start at UC Hastings in August and have very little knowledge about loans and financial aid. I'm planning to submit my FAFSA in as soon as I get my W2 forms but it's unlikely that I'll get any money from the grants that comes with that. Realistically, I'll be taking out GRADplus Loans/Private loans. I was wondering WHEN is a good is time to actually apply for loans so that it'll fall perfectly with the date tuition is due (which i believe is in July). Also, do most 1L's take out a whole yr's worth of tuition all out at once, or do they take out loans for each semester when tuition is due (roughly 20k per semester). Any input would be much appreciated.

[rubyrose]

I'm also interested in this question. My son will be applying for much larger loans. Is there usually a limit as to the amount that will be approved for a gradplus loan?

Thanks!!!

[anjmissy]

i've done fafsa for all 4 years of undergrad and i think i can answer this..first you don't have to wait until you get your w-2s to complete your fafsa, you can just estimate your income and once you file your taxes you can go back and correct your fafsa..second, if its anything like undergrad, you will fill out your loans depending on your school. For instance, I'm attending JMU, once i decided to attend JMU they sent me a financial aid package and i applied for the loans on that package, subsidized and unsubsidized loans, as well as other scholarships and grants I received. Third, there are NO more Pell grants for grad school with the new budget agreement. Fourth, there are no limits for gradplus loans. The only rule is that you cannot go over the cost of attendance for the school you are attending (you may be able to speak with your school though to ask them to increase the cost of attendance for you if you have some special circumstance). Look here http://www.gradloans.com/graduate-plus-loan/

Hope this helps

[anjmissy]

Also when you take out the loan you do it for the whole year but you will receive two separate disbursements (one in the beginning of the fall semester and one in the beginning of the spring semester)

Example..loan is $60k for the full year...45K is tuition and 15K is living

Fall semester: a check of 30K from the loan company will go to the school..the school takes out 22.5K for the tuition for one semester and will give u 7.5K for living (you can do whatever you want with this, don't have to pay back any if there is something left over)

Spring semester: same thing

In my opinion, since ive been on my own since 17 pretty much, it is best to budget your expenses in 6 month intervals...for example, even though classes are usually mid/end august-april/may I will usually take my fall disbursements to last between August-January and my fall checks to last between February-July...moral of this..if you aren't sure of income from anywhere else, its best to budget for 6 months for each semester, rather than 4.5


note: all of this info is coming from my experience of taking out federal loans for undergrad

[rubyrose]

this was very helpful. thanks so much

[theduffman]

Also when you take out the loan you do it for the whole year but you will receive two separate disbursements (one in the beginning of the fall semester and one in the beginning of the spring semester)

Example..loan is $60k for the full year...45K is tuition and 15K is living

Fall semester: a check of 30K from the loan company will go to the school..the school takes out 22.5K for the tuition for one semester and will give u 7.5K for living (you can do whatever you want with this, don't have to pay back any if there is something left over)

Spring semester: same thing

In my opinion, since ive been on my own since 17 pretty much, it is best to budget your expenses in 6 month intervals...for example, even though classes are usually mid/end august-april/may I will usually take my fall disbursements to last between August-January and my fall checks to last between February-July...moral of this..if you aren't sure of income from anywhere else, its best to budget for 6 months for each semester, rather than 4.5


note: all of this info is coming from my experience of taking out federal loans for undergrad

this is great advice. thank you

[bk1]

When the money gets disbursed to you depends on your school. Mine issued the refund (what was left over after they took out tuition from the loan amount that goes back to you for CoL expenses) a few days after classes started. I think some schools issue the refund prior to classes starting. It all depends, but it is something to factor in.

[sunynp]

Just to note - the FAFSA procedure seems to be changing, at least for my brother who is in undergrad. His school asks that you now wait until two weeks after you file your taxes ONLINE. The FAFSA form will then import the tax information directly into the form.

I'm not applying for next year so I don't know if this is the case at all schools, but I would assume that it is an overall change.

If you don't file your taxes online, I'm not sure what the procedure is going to be.

[sknowl01]

Just to note - the FAFSA procedure seems to be changing, at least for my brother who is in undergrad. His school asks that you now wait until two weeks after you file your taxes ONLINE. The FAFSA form will then import the tax information directly into the form.

I'm not applying for next year so I don't know if this is the case at all schools, but I would assume that it is an overall change.

If you don't file your taxes online, I'm not sure what the procedure is going to be.

It is not a requirement for all schools or for the FAFSA, it is just an option they made available. You can use it even if you mail in your taxes, but it may take 6-8 weeks for it to be available.

[3rdDan]

Thank this post was helpful for me too.