<p>I attend UPenn, and due to substantial financial aid, my expected contribution is about 4600 for the year. As little as that may sound to some, my mother and I can't afford it, so we're taking out a student loan (which caps at 5500 yearly) to pay for it. (By the way, this is with me living off-campus because it is cheaper overall, we can't afford Penn housing). </p>
<p>Off-campus rent is 700 (cheaper than Penn as I said) a month, and I know I have to take out some type of loan to be able to pay this. I was just wondering what type of loan I would have to take and if a student loan was even possible. I would really appreciate any help because I really do need some guidance.</p>
<p>You can call UPenn up and ask to have a Stafford loan added to your FA pkg to cover your “family contribution”. You can use that money for your housing.</p>
<p>HOWEVER, you won’t get that money til after school starts, so you’ll have to come up with first month’s rent and deposits before that.</p>
<p>Also, if the lease is for 12 months, then you’ll be paying for summer when you’re not there.</p>
<p>It sounds like you are taking out a Stafford loan that generally maxes out at $5500 freshman year. If you do that, the way it usually works is that half of it $2750 will be deposited into your student account at PENN for the first semester. If you owe Penn any money, they will snatch it right up for what you owe. What is left, you can request the bursars office to refund to you. You’ll have to talk to them as to what the exact administrative procedure is at that school, as it varies from school to school.</p>
<p>If you are an incoming freshman, which it appears you are, you had better discuss this off campus business with Penn. Many schools have rules about freshmen living off campus. LIke they may not permit them to do so, or require a specific process to get permission to do so. Also, it could affect your Cost of Attendance which is what your financial is based upon. So please talk to the school about this so you don’t find yourself facing some nasty surprises as the semester begins.</p>
<p>Most of the time, you do not get access to that loan money until a few weeks into the semester, by the way, so you have to come up with the security deposit, first months rent and moving expenses and any apartment furniture and sundires that you may need out of your own pocket. The same will likely occur for the other half, the next term. Also make sure you are all set in terms of required health insurance with the school, or your loan proceeds will go right to the payment of a school insurance premium.</p>
<p>I find it hard to believe that a double room at Penn is going to cost you more than $700 a month. Won’t you need utilities–gas, electric, wifi, and possibly have to put down some deposits there? Also, won’t you need stuff? And isn’t the rent for 12 months? Can you walk to school or will there be transportation costs as well? Bear in mind that there are all kinds of unexpected cost when you are living off campus.</p>
<p>The apartment is already furnished, and I am splitting the cost with 3 others (we are living in a 2 bedroom) - I have already taken into account the utilities, internet, etc. I can walk straight to campus. </p>
<p>Also, I’m actually an incoming sophomore, and I have sorted out all the things that were suggested. In other words, I really have put in an effort to know exactly where I stand about this. My only real uncertainty is with the loans and rent. Is it possible for me to take out more than 5500 for the year through student loans? Because after Penn takes all its tuition fees, I certainly won’t have enough to pay for rent. We’ve had enough to pay the security deposit and first month, but we just can’t afford to keep paying every month. Again, thanks so much for your help.</p>
<p>Correct me if I am wrong, but are you saying that your aid package already included Direct loan and you need more to cover rent? Does your aid package also include work-study? What about summer earnings? What did you do last year?</p>
<p>You have to provide more information about your situation for us to recommend something.</p>
<p>The obvious thins are: get a job and have your mom apply for parents PLUS, but this might be already part of your package.</p>
<p>Last year, my father helped to contribute, but he is no longer willing to (they are divorced). Unfortunately, this hasn’t affected my aid enough for college to still be completely affordable. My aid package does include work-study, and it is assuming I do work-study that we still have to pay the 4600. And yes, my aid package already includes Direct loan. It still is not enough to cover rent. Sorry for leaving out this information prior, I didn’t think it was that pertinent but I guess I was wrong.</p>
<p>Also, I would love to get a job to help but I am already doing work-study so I’m not sure if I’ll be able to manage another job and school at the same time. But thanks for bringing up parents plus, it is not mentioned in my aid package and I will definitely look into it.</p>
<p>Oh, sorry, it says that I am eligible for loans, but they of course won’t be granted unless I apply. In other words, if I took a 6500 loan, 4600 will be deducted and I will be left with 1900, which is not enough. So I guess my real question is to know what other types of loans are available to me that will allow me more than 6500.</p>
<p>I think many of us are confused with your situation. Do you already have Stafford Loans in your financial aid package? If so, how much is included as part of your package? Do you also have Perkins or other loans in your package?</p>
<p>YOU are entitled to borrow up to $6500 right off through the Stafford Program. Direct PLUS is a resource from which you mother/parent can borrow if the school official Cost of Attendance is not met by your financial aid package, school type loans, outside scholarships. It is not an automatic approval. The parent has to be credit worthy. If denied, YOU the student can take out additonal Stafford loans.</p>
<p>All of the the loans will go directly to UPenn who will credit them to your student account. 1/2 of the amounts will be dispensed each semester. Penn will take out all of the tuition, fees, health insurance, and other direct bill services (meal plan if you signed up for any of it) from what is deposited. What is left is then available to you, and that is not usually available until a few weeks into the semester. Some schools will hold that money until the drop date for classes has passed. </p>
<p>You need to get Penn’s official COA for those students living off campus. That is the amount for which you can get aid, including loans. Subtract out Penn’s package and any other scholarships you may have gotten, and you are left with the amount for which you or your parent are permitted to borrow through student loans. If you go the private loan route, you will be taking out the loan with a parent or other credit worthy person cosigning and both are you have the loan indicated on your credit record and are equally responsible for repayment. The terms of that loan will depend on how credit worthy the two of you are.</p>