Okay, i've been reading up on student loans for the past 4 hours and I havn't found what i'm looking for. I have my schooling paid for via a dislocated workers program. I need to pay for my books and living expenses. Does the deferred Stafford loan cover those expenses? Will I get a check or does "the check" go straight to my school...?
Dec 2, '06
i have a deferred stafford loan, but my loan per quarter was never more than the cost of fees/tuition. i had a friend, though, who had a loan for more than tuition... her check went straight to the school to pay off fees for the quarter & then whatever was left over was put into her personal checking account once per quarter.
Dec 2, '06
Stafford Student Loans - Determining Cost of Attendance
My daughter's Stafford loan would be in the form of a check kept in the schools treasurer's office. At registrationl tuition was subtracted and the rest given as "change." as her school in particular was really bad about raising tuition at at literally the last minute.
Dec 2, '06
They are much better now because this year is the first year they have been given at a fixed rate of interest for the life of the loan.
This can change at any given year, so I would encourage anyone to take out the maximum they can for subsidized...put it in the bank and use it for next year's tuition if you have any left.
If you are in a two-year program where the tuition is cheap...just put it in a savings account and just pay off whatever you don't use...it's free money until you pay it back.
Dec 2, '06
OR.. you could get a loan like myself through Sallie Mae. It's called a Tuition Answer Loan. My particular loan does have a high interest rate. The rates flucuate on this type of loan. It is not locked in. This may not be the best route to go with and I am investigating other options for the next go around, but it will at least get me in the door. This loan check goes directly to YOU.. NOT the school. So you can use it toward tuition, books, and THEN living expenses if you need it. You can set up the loan where all payments are deferred until after you graduate. I will pay on interest each month to help keep some of the interest costs down. I just wanted to let you know about this loan... You can get up to $40,000 a year from Sallie Mae (if you qualify.. it's credit based), and you can use the money for how it best fits your budget. BUT REMEMBER.... it can be pricey to pay back depending on the variable interest rate.
Good luck!! Epona
Dec 3, '06
As someone who is now paying back her student loan (ouch!), I would suggest that you try to look into scholarships, grants, etc. first. It is so easy to get dependent on your student loan. Now with the Stafford Loan's interest rate fixed at 6.8%, it'll cost even more to borrow money.
If you can, take in a roommate, that'll cut some of your living costs. Also, I might suggest that you try to get in with a hospital or other health care facility, and get tuition reimbursement. It takes work, but working in the business office of a community college, I have seen some students who really hustled and got an amazing amount of money and won't need to borrow money at all.
Dec 3, '06
I use my Stafford loans for tuition, books, childcare, and anything else school related. The check does to go to the school first, then I am sent the check. I have taken out the max amount for the past two semesters, and had enough left over to already pay for my books and tuition for spring semester (so I will get my entire spring loan checkin Jan.)(I go to a CC of which I am in district, so my tuition is relatively "cheap"). If all goes well, I shouldn't have to take out anymore for my last year but we will see what comes up. BTW, my first semester was all subsdized, this semester about half-n-half, and I have been paying the interest as I go along so far only about $15/month so I won't be accruing that interest for the next two years. You are doing the right thing by researching your options, keep it up! Also somewhere there is a sticky about financing NS school, do a search.
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