Countless higher education students spend sleepless nights while managing their expenses because of the escalating living expenses, tuition fees, and several other bills. This is the reason; they wonder whether or not they can get loans for their living expenses. Can I Get a Loan For Living Expenses While In College?
The answer to the question, “Can I get a loan for living expenses while in college?” is “Yes”. Contrary to the belief, you can get loans for your personal use too. You must understand that the cost of education isn’t confined to tuition fees only as many expenses are related directly to students pursuing their education in colleges or universities.
What do student loans include?
You can use student loans including both private and federal for different living expenses like:
- expenses for studying abroad
- fees and tuition
- books as well as other supplies for the classroom
- fees for certification and licensing
- housing that comprises off- and on-campus
- medications, groceries, toiletries, and different personal products
- dependent care, but for this, you need to inform the financial aid office of your school
What must you keep in mind while taking student loans?
Students can’t borrow a limitless amount of money and they need to budget their living expenses diligently. Every school assesses the student as well as his total cost of attendance, and it comprises the needed tuition, books, transportation, fees, and living expenses. The cost of attendance varies according to a student’s living situation, such as living off-campus (with his parents or on his own) and living on-campus. Nonetheless, you must be mindful that you can borrow federal student loans only within their limits. Hence, you must be responsible enough when you deal with your financial expenses. You must ensure that these loans last your entire semester.
What happens when you take student loans?
- The lender or the servicer disburses the financial aid to your school directly.
- Your school will abstract the cost of your tuition as well as room and board. After this, it will return you the remaining fund. Students who live off-campus commonly get a larger share of the refund because here, the school doesn’t deduct the cost of their board and room.
- Regardless of the choice, you will get a lump sum amount as a refund that you can use for your living expenses.
For what purposes you must not use student loans?
You must use student loans sensibly and don’t get carried away. You must know what the extra expenses bracket includes. Following are some activities or things you must not use student loans for:
- Buying vehicles or upgrades
- Vacation trips
- Down payments
- Expenses on small businesses
- Partying, clubbing, and other kinds of entertainment
- Upgradation of your wardrobe
- Paying other debts
- Expenses that aren’t connected to your present education
It would be a wise idea not to spend your loan amount on the above-mentioned expenses. Unfortunately, if you don’t have sufficient funds to pay for items, such as supplies and books, you can assume that an investigation will be done. According to the seriousness of loan abuse, at times, students face prosecution too.
Though you can get student loans for your living expenses, you must use the money wisely. This will prevent you from running short of money and facing serious consequences during your study. Although federal loans are considered better, you can think of taking private loans too. You need to ensure that you have used the student loan exclusively for educational purposes.
Frequently Asked Questions
Question 1 – What is the difference between private and federal student loans?
Answer 1 – The government makes the federal student loans and they are found with some terms and conditions. These loans comprise many benefits, like income-driven repayment plans and consistent interest rates. On the other hand, private organizations, like credit unions, banks, and state-affiliated organizations make private loans. In private loans, the lender sets the terms and conditions. Commonly, private loans tend to be costlier than federal loans.
Question 2 – How can I get a student loan?
Answer 2 – To get student loan, you must do the following:
- Apply – You must apply for the amount of loan you need. Additionally, you must submit the needed documentation besides the finest possible application.
- Accept – When your application satisfies the eligibility criteria, you will get a call from the lender. You might be required to arrange for some additional information. Soon, you will get your loan offer.
- Repay – The last step involves repaying where the loan will get disbursed into your United States bank account within some days. Here, you must set up your method of repayment. Some students select the autopay method to get paid every month.
Question 3 – What are the kinds of federal student loans?
Answer 3 – There are four kinds of federal student loans:
- Direct subsidized loans
- Direct PLUS loans
- Direct unsubsidized loans
- Direct consolidation loans
Answer 4 – The cost of attendance or COA is the amount a student requires to attend college, and schools determine a student’s COA. The amount a student is eligible to receive is determined by his COA. However, the cost of attendance varies from one school to another.