Tuition is covered by Fin Aid and Grant, can I still get a Stafford loan?

Paying for College
1

<p>Hey,</p>

<p>My school is fully covered by financial aid. It’s about 10 grand and it’s totally covered by Pell and TAP, I NEED a car to get to and from school, I recently totaled my car. Public trans is not possible, I cant ride a bike. The decision has already been made to buy a car. </p>

<p>My question is: Since my school is completely covered by Financial Aid can I still take out a Stafford loan? And use it to buy a car? </p>

<p>I am confused because I know that usually whatever is left over after a loan like that pays for your school is sent to you and you’re free to use it how you like. But what about if I don’t need any extra money?</p>

<p>Also, would I be able to take out up to 10K? at one time?</p>

<p>Thanks in advance all :D</p>

2

<p>The max Stafford loan for a freshman is $5500. Although all freshman students that are eligible for federal aid are eligible for up to $5500 in Stafford loans you can only receive aid (whether it is grants or loans or work study) up to the COA for the school. If your full COA is covered by aid then you will not be able to borrow Stafford loans. If your full COA is not covered you should be able to borrow the amount not covered up to a maximum of $5500. </p>

<p>Stafford loans are supposed to be used for college expenses.</p>

3

<p>Call your FA office. If you’re a freshman the max Stafford loan is $5500. The school has to certify that you are eligible to borrow that much and that will depend on their COA. I would not use Stafford for a car loan though. Think about it - you’re going to pay for ten years or more on a car @ 6.8% after graduating in 2-4 years, at which point you probably won’t even have the car anymore. This is what auto loans are for!</p>

4

<p>I should have been more specific, I am a Jr in College.</p>

5

<p>What would you all suggest I do? I need a car for school… auto loan? private loan?</p>

6

<p>Max Stafford for a Junior is $7500 (again depending on your COA and other aid). </p>

<p>Interest rate on unsub Staffords is 6.8%. Not the good a rate for a car purchase. Plus, as stated before, Stafford loans are for education expenses.</p>

7

<p>My COA(if that means cost of attendance) is 10,000 I go to a CUNY(city university of NY). </p>

<p>My fin aid and grant coveres it all. </p>

<p>I need a car and a recent financial struggle within my fam made me give my mother all of my savings. </p>

<p>So I need a car. What kind of loan would I need? Whats the best one for someone in my situation? </p>

<p>Any help would be appriciated…</p>

8

<p>Which CUNY do you go to and where do you live that you cant take public transportation???</p>

<p>I am sorry about your moms problems. </p>

<p>If absolutely impossible – is there a bulletin board you can post on to share ride Dont forget gas and insurance.</p>

9

<p>First talk to the school and see if you can get the stafford for transportation expenses - if not then see if you can live on campus and see if you can get some of that covered by a grant or loans.</p>

10

<p>My sister attended a community college. Her tuition was covered by state and fed grants, but she got full Stafford toward living expenses, both sub and unsub. Stafford is for college, but people who go to college need to pay for housing and to get there, especially commuters. Talk to your school’s FA office; they should make your eligibility clear for you.</p>

11

<p>I would suggest an auto loan, especially if you have a job or can get a cosigner. The rate is likely to be better and the payment term shorter. If you need a downpayment, perhaps a small Stafford would do…I think there’s a transportation budget includable in most COA’s.</p>