Logistics of Using Stafford loan for medical expenses?

Parents Forum
1

<p>Hi, Parents. I have a question about using student loan money for an experimental medical procedure (please don’t judge me?). </p>

<p>I’m 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>Before you judge why I need that amount of money, let me explain: I have a medical condition and want to use that money towards an experimental surgery in order to alleviate my condition that I have been suffering from since 2005. I have done a lot of research on that procedure (reading medical journals, consultations abroad) and unfortunately, it’s not covered under health insurance (but it’s common in Canada , Japan, European nationas.. ironically)….people use their Stafford money to buy used cars, electronics, etc so what is really the difference?. There is no other way I can get a loan with that low of an interest. I am wiling to take this risk as I am sure that I can definitely pay off 7,500 if that is the only student debt I have. </p>

<p>Unfortunlatey, my parents are unwilling to pay for my procedure because they are extremely straight edge and only listen to what American doctors say (only b/c American doctors aren’t even taught the procedure…) I understand that there is a risk that the procedure won’t succeed…but I am willing to take that risk. It’s not like I’m going to be paralyzed or go blind or die if the procedure goes wrong. Also, Once that refund check gets into my checking account, the system is far too big to track what I do with it. I am using my savings to pay off my car so it could just seem like I’m just using the Stafford money to pay for my school related transportation. I honestly believe that the procedure is not covered here in the US due to lobbying and the money it will decrease in the pockets of doctors…</p>

<p>….Parents.. please don’t judge/spam this thread if you want to offer your personal opinion…Just tell me if I would be able to get the money forwarded to me?</p>

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<p>The unsubsidized Stafford loan would be disbursed quarterly – $2500 each quarter, less the amount of origination fees. If your parents had already paid tuition in full, then generally a refund check would be given to you, probably several weeks after the beginning of each quarter.</p>

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<p>Sounds like you are trying to bilk your parents out of $7500.</p>

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<p>We are full-pay for my son and this year he took out a $7500 Stafford loan. The loan was disbursed in two payments (semester system), $3693.75 on 8/17/2009 and $3693.75 on 1/6/2010. The money was available to him in his student account about 3 weeks later. Since we had paid all of his account balance prior to the semester start, he was able to withdraw the credit balance for his own use (in his case, he purchased a car, insurance, registration, etc.); the school does not question what the money is used for (and neither does the lender, or the fed government). However the account balance is not automatically mailed to him in a check; he has to request the check from the bursar’s office. At least at his school there is a daily limit to what can be withdrawn in cash.</p>