<p>Hi, Parents. I have a question about using student loan money for a medical procedure / education related transportation expenses? (please dont judge me?). </p>
<p>Im a junior in college and I have a question about using Stafford loan to pay for transporation and personal expenses (medical procedure).</p>
<p>My EFC is 27,000 and the university I am attending in the fall is 28,000 per year, tuition room board, transportation, food, books, everything. </p>
<p>If my parents are paying the full amount of the money (9000), by the due date per quarter (instead of semester we have three quarters per schoolyear) and I still apply for a federal unsubsidized Stafford loan in the maximum amount of 7,500 for the 2010 2011 school year, does that mean that my school will receive the money from the government, and seeing how my cost for that quarter has already been paid for by my parents in full, will my school process a refund check and forward the 7,500 refund check to me?</p>
<p>If so, is timing extremely crucial? (i.e., that my parents have already paid the school prior to my school getting the money form the government who is lending out that money as a Stafford loan)</p>
<p>If I already get my tuition paid off in full by my parents, and I also get a Stafford unsubsidized loan as well, can I still apply for a private loan for my bank? I would say it is for cost of living and use it for transportation?</p>
<p>It would be a clearer picture if you just applied (and were approved for) the loans first, which will go directly to the school to pay your tuition,etc. and had you parents give you the money instead of sending it to the school. But I think that as long as the school certifies these loans, and the lenders approve, you will receive a refund of them after your folks send in their payment (you should discuss this with the bursar’s office to see what their procedure for issuing refunds is). Remember that you’re likely to require a cosigner for any private loan.</p>
<p>^^^
I don’t think the Stafford is considered a “private” loan and it does not require a cosigner. Also, unless I’m misreading the OP’s post he/she does not want their parents to know about the “medical procedure” that they are helping to fund.</p>
<p>Well, if she wants $7500 all at once, I don’t think she’ll get it from a Stafford loan as she would be eligible for $7500 per year and that would seem to be $2500 per trimester. I don’t see a stipulation that the parents can’t know…perhaps they’re paying directly to the school from a 529 or prepaid plan? Didn’t want to delve into a medical situation, but that’s why I added the cosigner reminder.</p>
<p>^^Agree Staffords are typically released each semester/trimester/quarter so it would be at the end of the year before all the monies were released. As to a private loan, OP, no one here can answer that. It would depend on how “credit-worthy” banks would view you, your age, your financial resources from a job, etc. and a bank might require a co-sign from some other credit-worthy adult. My son’s invoice always comes with a memo stuffer regarding refunds for those students receiving refunds and when they will be released, so that information you can find out directly from your finaid office.</p>
<p>No she doesn’t, but we’re all trying to not discuss that aspect. The only problem I see if what address she uses for her permanent address. My son uses our home address since he moves every year which means all the information, etc. on Staffords, college related stuff comes to our house. I do not condone what the OP is considering and I certainly don’t condone students using Federal loans intended for college on non-college related activities, but…</p>
<p>Even if she doesn’t use her parent’s address as her permanent address, there’s a good chance that her parents have access to her financial information online if they are paying the bill. I know I did.</p>
<p>Same here. In addition, because our house is our daughter’s regular ‘home’ address copies of her account statements arrive here which I open, just in case there’s an irregularity that needs to be addressed. I can see every transaction in black and white.</p>
<p>She was also told at the very start of this whole process that the only way Mom and Dad would foot the bill is if she signed and granted us access to her account and academic information at the school. If she wanted it kept private, then it would be up to her to find a way to pay for it.</p>
<p>She happily signed the access form in front of us at orientation.</p>
<p>Hi, I’m the OP. Well, my parents would not track the accounts online unless financial aid decides to email them or something. I am absolutely not putting down any of my parent’s contact info on the forms (or may have to put in an old account that they don’t use, a new account i made, etc.)</p>
<p>SHould I start getting on the waitlist at the post office to rent a mailbox such that my mail abosoluletly does not go into my house?</p>
<p>–my school is on trimester system. So, I would get 7,500 divided by three for fall, then then same amount sometime in early jan to late feb (second disbursal). </p>
<p>However, I am planning the medical procedure during winter christmas break such that I have time to heal. I have a credit card with a 2,500 limit on it.</p>
<p>Would it be a viable (I know it’s not good, but again, I have no choice here) to use my credit card to pay the 2,500 rest of the medical procedure off and then use the financial aid stafford loan refund later on to pay the credit card bill off?</p>
<p>THanks so much parents!!</p>
<p>–Do you guys know of any other way I can obtain $5,000 in funds? I really have no other choice here…</p>
<p>–I just submitted the FAFSA two days ago, and included my school’s name on it. My school starts in late september/early october. Is there anyway I can still even qualify for the FAFSA? </p>
<p>Should I take a community class that costs $100 dollars and try to apply for a stafford loan for the summer? Would that even work? I need the money, really really badly.
~Sally</p>
<p>How are you going to get your parents to write a check for the entire cost of each trimester without showing them an invoice of the amount due? All three of the schools my daughters attend indicate expected loan amounts on the invoices. Or am I the only parent that wants to see an invoice before I write a check?</p>
<p>sally, you’re now asking us to advise you on how to go behind your parents backs to get a medical procedure that, presumably, they feel is too risky or unnecessary AND how to divert federal loan funds for something other than their intended purpose. This is going to make many people here uncomfortable and is not the purpose of this forum. I doubt that any regular posters here have experience with this situation (over-awarding of loans) as most of us are committed to seeing our kids graduate with as little debt as possible.</p>
<p>Imho, this is not a good plan and I sincerely hope you can find another solution to your problem.</p>