Loans for personal expenses?

Posted

I have read some threads about the working vs. not working debate and I have seen people suggest taking out loans to help them through school instead of working. Are there loans that provide money for personal expenses? Private loans? Or govenment loans?

Butterfly0328

Specializes in future OB/L&D nurse(I hope) or hospice. 286 Posts

You are able to take out both private and government loans. The money is disbursed to your school and once your classes and fees are paid for if there is any money left over the school will either send you a paper check or you can sign up for direct deposit. So, to answer your question, yes, it is possible to take out enough student loans to live on while in school. Not saying I would recommend doing this, but many do. It is truly up to you and your cicumstances. The only one thing I would manybe think about is perhaps taking out student loans at about 6% insterest versus charging up credit cards at 12-20% interest. I know of a lot of people who maxed out their credit cards while in school, when they could have taken out some student loans at a much lower APR. BUT, if at all possible it is best to avoid both. Good Luck:)

iPink, BSN, RN

Specializes in Critical Care, Postpartum. Has 9 years experience. 1,414 Posts

I'm in an Accelerated program where they "encourage" us not to work due to the intensity of the program. So they provide us with a cost of attendance so we can know the cap on what we are allowed the borrow. This cost of attendance includes travel/rent/personal expenses we may need. I have borrowed money only for my tuition and not for personal expenses. I do live on my own, which means I pay rent, etc and will not borrow to pay those expenses. I learned to save and spend only when needed. Besides, I don't want to be in knee deep in debt when I graduate. I agree with the above poster to leave your credit card alone. Don't use it to pay off things.

If you need to borrow for tuition and personal expenses, do a budget and only borrow that amount. Don't borrow in excess, because you have to pay all that money back. Also look into scholarships. I'm a career changer and found many I qualified for.