Stafford Loans reduced if living off campus?

<p>My son will be living in an apartment next year, and the cost is very close to what the on-campus housing was. I was filling out the FAFSA again, and when I got to the question about living on/off campus, I became concerned, since we need every dime of those student loans. I googled a bit, and found this statement on a website.</p>

<p>-->If you choose to live off campus, you may or may not qualify for the same amount of financial aid that you would receive if you actually lived on campus.<</p>

<p>Holy crap is that true? If so, I am so totally screwed next year. :-(</p>

<p>VTmom92, call the school financial aid office and ask what the policy specifically means. The way I have seen it work is that there is an official COA that a school has that is the ceiling for aid. You cannot borrow PLUS or educational funds above that amount. You cannot get financial aid over that amount and the amount is also reduced by scholarships. But a lot of schools do not just have that one number, but several numbers. They may have different numbers for freshmen who are required to live in the dorms and get a certain meal plan. They almost always have numbers for commuters than for those who live on campus. Then they usually have a third category for those who live off campus but who are not commuters. I don’t know how your colege does this. You need to know what these numbers are because I am pretty sure that is what can affect your student loan and financial aid.</p>

<p>In the one case where I saw a problem which was a huge mess, though it was a friend involved, I had to side with the school. Her DD got an award on the assumption that she was living on campus which also had a set minimum meal plan. They lived locally, and she decided to commute instead, and the school cut her aid because she was a commuter. I don’t know if your school would lump commuters with those living off campus. I’ve not seen it done, but heard of it being done, but in an advantageous way, not to the detriment of the student. Usually kids who move off campus not with parents, make out in aid since they can save a little money but get aid on the same basis as those on campus. However, if the school has inexpensive and plentiful housing, they may set the COAs lower off campus than on. All suppositions here; you need to get the exact word from the school as to how they work this.</p>

<p>Are you talking about Stafford loans specifically? I was always under the impression that those are guaranteed. My DD commutes to a mid-sized state university, our EFC is more than tuition, but she always gets the maximum Stafford loan, whether it be subsidized, unsubsidized, or a mix of both.</p>

<p>I just checked the schools’ website, and found this:</p>

<p>If I move off campus, how does this affect my financial aid?
A: We use the same housing cost figures to determine aid eligibility for both on-campus and off-campus students. The difference is that off-campus students are billed by Virginia Tech only for tuition and may receive some of their financial aid as an excess aid refund. The excess aid is often used to assist in paying for off-campus living expenses (rent, utilities, groceries, etc). Before you move off-campus, make sure you make a budget for the various costs associated with renting an apartment that you would not encounter as an on-campus student.</p>

<p>So I think we will be fine. I wonder how they handle the refund though…I will have to ask them. Thanks for the response!</p>

<p>Yes, I was speaking specifically about Stafford loans as that is the only aid that we receive. It is interesting that you get them offered if your EFC is so high. I have a friend at work that has a much higher family income, and they do not get the same amount of Stafford loans offered that we do.</p>

<p>The loans are guaranteed up to COA. The COA is the absolute ceiling for ANY federal aid,and most of the time for college aid. </p>

<p>If the COA of a college is $30K, and your student gets $25K award package of grants, work study, Perkins, for example. he cannot get the full Stafford because only $5K is left between the award and the COA. </p>

<p>School HATE to give out that COA number which should be available. But it depends upon the school how the break down those numbers and now many of them they have for how many circumstances. You cannot commute to school from parent’s home and pocket the financial aid. But in most circumstances, living off campus has a similar COA to llving on campus. But they do not do give each student with different rents and eating costs their own COAs, and a composite number is given that is what the school figures is the average. It is possible that the COA for off campus is less than that for on campus which means that you those students who have a full cost package will be able to borrrow less when living off campus, even if their actual cost is more or the same. Until we get the full story, we don’t know.</p>

<p>It is entirely possible that even if the COA is less, it won’t affect VTmom’s son, since you have to be at the limit of full need to be affected. with this. She needs to find out for sure.</p>

<p>VTmom, EVERY US student is entitled to get Stafford loans even with zero need and sky high EFCs as long as the COA of the school exceeds the scholarship and need awards You just do not get subsidization on them if they are going towards EFC rather than need. We have a high EFC, but my kids can take out Staffords, but none of it subsidized. You are not permitted to take out Staffords or PLUS if you win a full ride scholarship that is equal or exceeding COA. That COA figure is all important in terms of how much a family can borrow for school. It is reduced by financial aid, loans and work study.</p>

<p>As we’ve seen on some other threads there are also some schools that will cap Stafford loans at less than the maximum, or schools that are not eligible to accept Stafford loans.</p>

<p>VTmom, It may vary, but at D’s school overage checks (or direct deposit in her case) are sent out at a fixed date…about a week before classes start. This would be for funds managed through the school.</p>