Student Loans?

[mikim]

I need an advice on student loans. I'm admitted for the Masters Program for Fall 2013 and i was offered Subsidized and Graduate Plus loans. I declined to live in campus because it would cost me additional 15 grands per room in the dorm that i will be sharing it with someone else. i was expecting to borrow some money that will help me to cover the cost of education and  cost of living. The Financial Office in my university sent me the letter with amount that I'm giving for this education year but these money are only enough to cover education cost. Can you guys let me know which loans I can use to cover my living expenses?  

[annieca]

Usually, and please people correct me if I'm wrong, the standard loans will cover the education costs and then Plus (which has a higher interest rate) will cover living expenses. If you're at a super expensive or in-the-city school (as it sounds like if room and board would be $15k a year) and you work, there might not be enough within the two loan packages combined to cover everything. My advice? Try, try, try to get a job to cover the difference if it's only a few thousand. Private loans are not something you want to be trifling with.

[mewtoo]

I just had this problem but my loans were reduced because of my assistantship. Are you out if state? Make sure they have your budget set up for an out of state person if so. They were only going to give me 1800 for a year and then I made them catch the mistake. Now I have plenty to live on. Go to the financial aid office. Loans is supposed to cover cost of attendance which includes money to live on. Even for masters level.

[michigan girl]

"I need an advice on student loans. I'm admitted for the Masters Program for Fall 2013 and i was offered Subsidized and Graduate Plus loans."

This doesn't make any sense. Graduate students currently are only eligible for Direct Unsubsidized Loans ($20,500 max). After the Direct Unsubsidized Loans, you can apply for Graduate PLUS Loans (up to the full cost of attendance, including living expenses) separately on the StudentLoans.gov website. Please review your financial aid reward and talk to a representative at the Financial Aid office so that you are fully covered (tuition + housing + living expenses) for the school year.

Edited August 18, 2013 by michigan girl

[juilletmercredi]

You can use any loans to cover your living expenses (either Direct or PLUS), but you may have to request more from the financial aid office.  Financial Aid only sends you a tentative award letter; it doesn't mean that's all you're eligible for.  Sometimes they will send you an award letter that just covers your direct costs to the university (tuition and fees) because they don't realize that you need living expenses, or it's just not their policy to offer you a loan based on living expenses at the outset.

 

Universities have a cost of attendance, and you can borrow PLUS loans up to the cost of attendance.  The cost of attendance usually includes an estimate of living expenses.  So if you need the Direct loans and part of the PLUS loans to cover your tuition, you can request more loans to be certified to cover your living expenses.

[ruru107]

This doesn't make any sense. Graduate students currently are only eligible for Direct Unsubsidized Loans ($20,500 max). 

 

Actually, financially needy graduate students attending participatory schools are also eligible for a subsidized loan, the Federal Perkins Loan. It is not nearly as large as a Direct loan, but if you are coming up a bit short, I would definitely look into the Perkins loan and see if it is available to you.

[michigan girl]

Federal Perkins Loans are available to students with great financial need (zero to low EFC; I believe up to $8,000 per year for graduate/professional students). However, many institutions do not award the full amount of Perkins Loans to graduate/professional students (especially those attending public universities with lower tuition and fees for in-state students). Most students who qualify for financial need receive the Direct Subsidized Stafford loans first, then may receive a partial federal Perkins loan if they are eligible based on the total cost of attendance of the institution.

Edited September 1, 2013 by michigan girl

[michigan girl]

Correction: I meant to write Direct Unsubsidized Loans first in my last post

Edited September 1, 2013 by michigan girl

[ZeChocMoose]

However, many institutions do not award the full amount of Perkins Loans to graduate/professional students (especially those attending public universities with lower tuition and fees for in-state students).

 

This is because institutions received a limited amount of money from the federal government for Perkins loans.  The institutions then decide how they want to split this money i.e. the school might value undergraduates over graduates for this money or EFCs of 0 vs. low EFCs, etc.  

 

You also want to submit your FAFSA early if you think that you are eligible for a Perkins loan as timing usually plays a factor into whether you receive a Perkins loan or how much you are awarded.