I want to take out a private loan to pay for my son’s junior year of college. I want to borrow enough to cover tuition, room and board, but not sure about the details as my son is living off campus and cooking for himself.
I know the loan company (Discover/CollegeAve, etc) send the funds straight to the college, so how do I know how much to apply for? I am assuming I apply for the cost of attendance, which includes tuition, room, board, fees, etc. But the amount we owe the college is only the tuition and fees – the room costs will be paid to a private landlord while the food costs will be paid to various grocery stores.
I assume the college will keep their portion, and send us the overage to pay rent and food, but I can’t find this out for certain.
So three questions:
- Can anyone tell me how the loan process works for a student who lives off campus?
- Can I apply for the entire year, or just for the semester? I only have a bill for the semester, but I have a COA for the entire year?
- If the loan doesn’t get funded in time, do I pay the school directly and then they will refund the overage?
And yes… I know all about being careful about taking out private loans, so I’m fine with people not posting about the wisdom/lack thereof of this particular plan of action.
Thanks!