<p>Hey, right before I started my freshman year of college this year my car broke down. It's been a huge inconvenience getting to and from school, and since going to class full time seriously cuts into my available/work time, it's impossible for me to save up the kind of money to buy a new car (I'm barely cutting it financially as it is).</p>
<p>So I requested a loan awhile ago and finally received it. However, I requested the maximum amount ($5500), but only received something like $1667. Can anyone explain why I would not receive the maximum amount that I requested? Isn't it my right as a full time student to receive up to the maximum amount offered? This is a federal Stafford loan. My EFC is $0.</p>
<p>Well…you maximum awarded need based aid can NOT exceed the cost of attendance at your school. SO if more than $1667 would take you above that amount, that could be one reason. Another reason might be that you are being awarded your loans by the term. Typically Stafford loans are disbursed each term (you don’t get the WHOLE $5500 upfront). So, could $1667 represent what you are getting for the current term?</p>
No. As thumper said, your total aid (scholarships, loans, grants, WS etc) can not exceed the total COA for your school. With a 0 EFC you should have received the max Pell grant of $5550. That plus any other aid (merit and/or need based) can not exceed your school’s COA.</p>
<p>According to other posts, the OP is attending a community college in New York state somewhere. He received the full Pell grant and was awaiting TAP info. Seems like those two items might actually exceed the cost of attendance at a community college, especially since the one posted about did not have housing. </p>
<p>So…OP, what is the cost of attendance at your college AND did your Pell and TAP awards…and maybe that $1600 or so meet your cost of attendance?</p>
<p>A net disbursement of $1667 means that the full loan disbursement before fees is $1675. Loans must be disbursed in 2 equal parts over the course of the year at a semester school (3 equal parts at a trimester school). This means the loan is $3350 for the year. OP, as others have pointed out, your aid cannot exceed the school’s COA. Add your scheduled Pell payment of $2775 (even if you received less because you took fewer than 12 credits, the 2775 is used for determining aid eligibility), your TAP, and the loans of $3350. Does it equal the COA?</p>
<p>First, the maximum of Stafford loans is available on an annual basis - so you shouldn’t expect to receive the full $5500 in fall semester anyway. The max you would have been eligible for in one semester is $2750. If you’re at a SUNY CC, it’s very likely that your Pell and TAP awards more than covered your tuition, fees, and books…didn’t you receive a fairly substantial refund? </p>
<p>The average annual COA for a commuter at a SUNY CC is $11,200, or $5600/semester (which includes around $2.5K for transportation, personal expenses, and room/board) so it’s likely that your remaining loan eligibility was probably reduced so as not to exceed the full cost of attendance for the semester, as others have said. This is a federal regulation and schools don’t have an option to increase your eligibility above their COA. </p>
<p>Do you have other options such as leasing a vehicle? You would likely need a co-signer but I’ve seen some decent lease offers advertised recently by Toyota and GM.</p>
<p>The COA thing makes sense, I didn’t know that part.</p>
<p>Is it possible to get a private student loan with bad credit? After highschool I moved away and got a really good job, but then the company downsized with the economy troubles and I lost my job. Since then I was unable to keep up with payments and my credit score plummeted.</p>
<p>My car broke down right before I started school in the Fall. I was living with a friend, but he’s transferring away after this semester. Most likely I’m only going to be able to find a place a significantly further distance away from school, so I really need to find a new car. I’m barely going to be able to cover living expenses from the money I’m getting working part time, so there’s no way I’m going to be able to save up the money on my own.</p>
<p>Essentially, my ability to continue attending school is in jeopardy, and I have all As this semester. Any ideas?</p>
<p>Even a private student loan is subject the COA restriction. Private loan eligibility is certified through the school, and schools cannot certify your loan for more than the amount of COA-all awarded aid.</p>
<p>You may need to consider a signature loan (that is, a loan that is not an educational loan). If you belong to a credit union, they are very helpful.</p>
<p>veloci, a student loan is for college, not for car purchases. Yes, I realize that you need a car to get to school, but college loans are not car loans. They are college loans.</p>
<p>Is there any chance you can rent a room that is within walking distance of your college? Cars are money pits…not just in purchase cost but in upkeep also. If you live within walking distance in a rented room (not an apartment) you may find that you will save money overall.</p>
<p>Obviously cars cost money, but they’re a necessity where I live (not a large city). I wouldn’t be having such a huge problem if I didn’t have to devote so much time to school, and could work instead. Not quite sure how I’m expected to cut it financially with such strict limitations on loans, I thought they were there so that I wouldn’t have to worry about this. Especially considering I’m going to a cheap school.</p>
<p>I won’t be able to qualify for any sort of normal loan with my credit.</p>
<p>You’re going to a school that’s very cheap and you already have access to more than enough funds to cover tuition, room, board, books, and about $1500/ year in transportation costs. You’re working part time, so how much more do you need? How careful are you with money and where can you cut your spending? There are almost always options…does your CC offer dorms or, as thumper suggested, can you rent a room nearby? It’s usually just cheaper to fix a car that you already own than to buy another. If the repair cost would be more than the car is worth, can you just buy an old ugly car that runs well until you can save up enough money to buy something a better?</p>