Can you take out more than the FAO budgets for you?

[JJNY]

Title is self-explanatory, I suppose...

If the financial aid office comes up with a budget of $xx,xxx for the year, can you still take out more through private lenders or unsub Stafford if you haven't reached the max?

Can't seem to find a definitive answer to this question...

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[mpp]

If the school is a direct lender then you cannot take out any more in Stafford loans then they tell you. However, I have never heard of anyone in medical school being turned down from the maximum unsubsidized Stafford loans.

If the school is not a direct lender, you should be able to go to another lender (NOWLoans, T.H.E., etc.) and get the maximum in unsubsidized Stafford loans.

Private student loans are available to anyone that qualifies. They really have nothing to do with the financial aid office if you won't want it to. However, you may have trouble finding a lender without approval from the financial aid office.

 

[JJNY]

Thanks MPP for the great info!

So would this work?

I'm going to a state school, tuition $15K. Assuming $10K for living expenses, that is a total of $25K, which leaves $13.5K remaining under the $38.5K limit.

Does this mean I can take out the extra $13.5K in unsubsidized Stafford loans if I want to?

If that's the case, it would be awesome!

 

[paean]

NO. Sorry. The federal guidelines apply to all stafford loan schools, not just direct loan schools. The school has to certify you for eligibility for stafford loans, and they are not allowed to do so for more that the student budget allows. There are certain ways to increase the allowed student budget, but they are limited in dollar amount, and only to be spent on certain things, like housing, medical payments, and daycare for dependants.

Also, most schools are very hesitant to certify you for additional funding from private loan sources above the student budget either, and without their certification, getting private loans is both expensive, and difficult.