<p>I'm going to be an incoming freshman, and my FAFSA figured that I have an EFC of 0. I have not received any scholarships, but all of my federal aid is maxed out. I only need to come up with about $6,000 for the entire school year. On top of the money, I need to somehow come up with $650 for books and lab fees for all of my science classes. </p>
<p>I understand the pitfalls and dangers with private student loans, but I need this money really bad. How do private student loans actually work? If I'm approved, do they send me a check and I send the money every time I get my bursar bill? Does the lender disburse the funds themselves to the school? If they do that, how do I get money for my books and other fees? Do I have to take out an additional loan? I'm the first one in my family to go to college, so I don't really have anyone to ask about this stuff. Sorry if these are obvious questions too, I really don't know who else to ask!</p>
<p>Do you have a co-signer for the loans? If not, you probably won’t qualify.</p>
<p>Yes, my grandma is cosigning for me. She never had to do student loans or anything like that for my mom or aunt, so she wanted me to look into the details a little more before we both committed and filled out the forms.</p>
<p>Private student loans have their own rules depending on the lender. You should get three different options and get all of the terms, picking the best one. You do realize that she has apply and go through a credit an dincome check. Also, if something should happen to you, death, disablitity or drop out, she could and most likely be stuck with the loan. </p>
<p>The way most school loans work is that they are paid to the school not to you since that is how they can be sure the funds are going as proclaimed. The school gets first dibs at the money for any tuition, fees and other items that go on your school bill. A lot of schools do not release those funds until after the drop date for courses. But it is up to the individual school’s way of doing things as to procedure and how the money is given to you. Half the money will be deposited for the fall semester, and half for the spring, is also the way it usually works, with the school getting paid first. You will need “seed” money up front most likely. Most students do.</p>
<p>Okay, that makes sense. I guess I’m just a little confused as to the books and such. I know loans should cover everything from books to housing to meal plans, but how do I get this money then? A lot of people are starting to order their books, and I’m afraid I’ll be the only person without them by the time school starts :/</p>
<p>Should I just call the school when I get the loan, and call the lender?</p>
<p>You have to find the private lender yourself. They will take care of getting the money to the school after you and your grandmother fill out the loan application, get your credit checks, are approved, if you are even approved–this is not automatic approval, you understand? Part of the appllication process is going to be telling the lender which college gets the money, and they will send the funds when and if you are approved, directly to the college, not to you> When the loan is approved, they will tell you for how much (not necessarily for what you asked) and the interest rates and specific terms. You and your grandmother will sign the loan specifying all of this, and you can then ask the lender, when the funds will be sent to the school. Then you call the school to find out when they receive the funds and when they are done taking out direct bill items, you can have the rest according to their procedures, often after the drop day of classes.</p>
<p>Until then, you need to pay for your books,supplies, transportation yourself. Maybe, if there is enough money left in there, after the loan approval but before the funds are dispensed to you, the school will give you a voucher for the bookstore. You can usually get books a lot cheaper on line or renting or personally from students who might have a copy, but vouchers are usually just good for the bookstore . So yes, it is up to you to get some upfront cash, because the loan proceeds will not likely be dispensed for a few weeks after classes have started.</p>
<p>You will probably have to borrow money from grandma to buy your books because you probably won’t get the money in time for that. Loan money goes to the SCHOOL first, then a few weeks after school starts, the school will figure out if you have a positive balance and send you a check.</p>
<p>You have to have some up front money to go to college unless you can work something out with the college itself. The money all goes to the school first, not you and you get what’s left after the college takes its share. That is the way it works.</p>
<p>Thank you so much everyone, this has helped so much!</p>
<p>If new federal student loans go up to 6.8% (which is the current law starting Fall of 2013), then the private loans may be more attractive for families with excellent credit and a parent willing to cosign. Sallie Mae just sent out a mailing saying their private loans start at 2.25% for people with excellent credit and a parent co-signer.</p>