Student Loans For Living Expenses – Overview & Lenders

January 22, 2012

Student Loans For Living Expenses

Student Loans For Living Expenses

Attaining student loans for living expenses can really come in handy when your other loans have provided enough money to pay for you tution, but nothing for the cost of living. What it should be known is the most all grant and loan programs allow the eligible applicant to use the scholarly funds for things other than the tution costs, which include living expenses as well as things like computers and traveling fees like on the bus, grocery bills, etc. Being that student loans cover living expenses, one should be very methodical in the way they go about using their student loan money to cover their living costs, because as you image, the debt can start adding up pretty fast when your using loans to pay for both living as well as tuition. So without saying, filling out your Free Application for Federal Student Aid (FAFSA) each year is a must as this can provide you with federal grant money, which never has to be repaid which then you can use to drop on what you need to live and use the loans that you have to pay back, whether they be federal or private, on the cost of tuition. This way you will minimize the debt total as much as possible so you will end up having to pay back less when your schooling has come to a conclusion.

Finding Student Loans For Living Expenses

The first thing to do to keep in mind when searcing for student loans for living expenses it to make sure you find a lender that doesn’t transfer your student loan funds directy to your school, as this will put your school in control of your funds which usually are only able to be used on semester/quarter tuition. The first step would be to go after federal loans like said above through the FAFSA which you will want to find a program that offers to cover the “Cost of Attendance” but includes living expenses. This should be your first step as federal loans just flat out come with better terms and lower interest rates, meaning you will pay less in interest and more to the lump sum of your debt when you are done with school. If you have exausted the federal resource, ands still need student loans for the cost of living, then you can make a visit to your personal bank and inquire through them about it as most all private loan lenders, or banks offer loans that cover all the tution costs that federal student aid didn’t cover, which includes loan money for the cost of living. If your bank doesn’t provide you with a student loan for living costs, then you can also try other banks or credit unions. Some providers that offer student loans for living expenses include:

  • Chase Bank
  • Sallie Mae
  • Wells Fargo
  • Wachovia

It should be known that most all private student loan lenders demand a good credit score to obtain student loans for living expenses, so you have two options which are either to apply knowing that you have a good credit score, or find a cosigner that does. This will not only allow you to obtain the money for living costs but also provide you with better terms and a lower interest rate. Regardless of whether the lender requires a good credit score or not, providing one will not only bring better terms, but also allow you to borrow a lot more than you would be able to without a good credit score.

Student Loans For Living Expenses – Alternatives

It’s only obvious that students want to minimize their debt total as much as possible, and there is another way to do that without having to take out student loans for living expenses, or minimizing the need. A great alternative you can use is:

  • Federal Work Study Program (FWS) - Over 3,400 schools offer work study programs as well as the program is offered by local, federal as well as state public agencies. The work tends to consist of both work that has similarities to what the student is studying as well as community serivce work among other types, and provide at leat mininum wage, in which the money earned goes directly towards paying for your tuition. In order to utilize this student loans for living expenses alternative, you must file out and submit a FAFSA.

 

Category: Student Loan Database

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>