Graduate Fellowship making me ineligible for federal loans!

[GirlNeuro13]

I was recently accepted into a clinical psychology PhD program. I was also offered a merit based fellowship and awarded 4 years full payment of tuition/fees and a very generous yearly stipend. Without the fellowship, I would still have had all the schooling paid for, but my stipend would have been considerably lower. I was very ecstatic to receive this fellowship, until I talked with someone in the financial aid department. Unfortunately, this fellowship is considered "financial aid" and thus will render me ineligible for student loans. My regular (lower) stipend would have been paid by my mentor and is thus would not considered "aid" but payment for work, so it would allow me to take out loans. I talked to two different people in the financial aid office, as well as the person in charge of the award, and all 3 agreed that I was not going to be eligible for any aid through the school. At that point, I mentioned that I would then just have to take out private student loans.... It was then explained to me that EVEN private student loan companies will take my fellowship into consideration and since it is above the "cost of attendance (CoA)" I will likely not qualify for these either.

After taxes, the stipend will be about $1500/mo take home, while this may be livable in some parts of the country, I am in one of the most expensive areas, and thus this will not be enough to live off.

Has anyone else ever encountered this, and if so, did you find a work around? Were you able to get private loans after being denied federal loans due to a scholarship or fellowship? I'm really hoping someone can help me navigate this unfortunate caveat of an otherwise amazing fellowship!

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[futureapppsy2]

This may be a shot in the dark, but would the university/your program allow you to both take the fellowship stipend and get a stipend for working as ab RA, as you would have done had you not gotten the fellowship? The university where I got my masters allowed this, which meant fellowship recipients generally made a very livable wage between their two RA and fellowship stipends.

 

[GirlNeuro13]

Yes that is something that my mentor is currently exploring... We just have a feeling the program will not be keen on one student making considerably more than another, yet they may allow this since the fellowship itself is actually causing me to be ineligible for loans. I'm hopeful after hearing that your university allowed this

 

[OneNeuroDoctor]

Is this considered a full ride scholarship/fellowship? If so, you must be very gifted and you were awarded this based on your academic record.

During my undergraduate study, one of my fellow students received a full ride fellowship to KU in their Clinical Child Psychology program. He was very gifted having GRE scores above the 95% that made him eligible for the fellowship.

I do remember him complaining about parts of the fellowship and he had to teach and he was assigned to be with a specific faculty member as a research student.

The academics were never an issue as he had a full ride scholarship for undergraduate study as well. I met him in my work study job in the library. You may be eligible for work study/assistantships for grant funded research team positions above your fellowship.

I do remember that he had some specified guidelines that were required to continue with the fellowship award each year in the area of grades, teaching and research guidelines.

I would consider yourself very fortunate to have been awarded this fellowship rather than worrying about the amount of the stipend. You may need to share housing with other students while in California due to the cost of living. In some communities they pair up students on Fellowship with families that provide room and board during your studies to reduce cost of living expenses.

 

[GirlNeuro13]

Thanks for the reply. Yes you are right that I am VERY fortunate to have received this fellowship. I hope that it did not come off like I was ungrateful. Unfortunately most students in my program tend to take out around additional loans each year in addition to their stipends due to very high cost of living. I will already be living with a roommate and it would still be impossible to make $1500/month work. I guess that is the downfall to attending schools in desirable locations! Either way I know that I will find a way to make something work. I was just mainly trying to find out if I really am ineligible for private loans in addition to student loans. After an exhaustive internet search I've come to the conclusion that I probably am.

 

[WisNeuro]

Ah, this reminds me why I won't work in the Boston/LA/SD/NYC's. Doesn't matter what you make most often, you still struggle to live. I'll take low cost of living any day.

Is there the option of working outside the program? I did assessment work for a few research projects in grad school and actually made pretty good money (higher hourly rate than my fellowship actually). Upside, it was also clinical in nature so I could use it as a CV builder.

 

[GirlNeuro13]

Ah, this reminds me why I won't work in the Boston/LA/SD/NYC's. Doesn't matter what you make most often, you still struggle to live. I'll take low cost of living any day.

Is there the option of working outside the program? I did assessment work for a few research projects in grad school and actually made pretty good money (higher hourly rate than my fellowship actually). Upside, it was also clinical in nature so I could use it as a CV builder.

Yes! It looks like my mentor is going to be able to find some extra work for me that is above and beyond what would normally be expected of me. I can then be paid for this extra time, and it looks like this is within the program guidelines. I guess I am just lucky to have a mentor who is willing to offer this. This additional money will cover bills only, so I am gonna learn real quick what it's like to live frugally!

I also found out that while I'm ineligible for any loans, oddly I am not maxed out on scholarships.... They will actually allow you to receive $3700 per month in scholarship aid so I can still pursue those, although I was told I was unlikely to get awarded any within the university since I have already received such a large and generous scholarship. Looks like I'll be focusing on extramural scholarships!

 

[OneNeuroDoctor]

Have you asked if there is a housing waiver. I've heard of students on Fellowship staying in University Housing at a reduce rate with free meals.

In California, many students seem to rent houses with Four or more students paying rent to make ends meet. Also, since you will be on campus putting in long hours, it may be more convenient to live on campus.

 

[GirlNeuro13]

Have you asked if there is a housing waiver. I've heard of students on Fellowship staying in University Housing at a reduce rate with free meals.

In California, many students seem to rent houses with Four or more students paying rent to make ends meet. Also, since you will be on campus putting in long hours, it may be more convenient to live on campus.

Unfortunately I have a dog, and the on campus housing (which is very cheap!) doesn't allow dogs. I will definitely need to reassess my living situation next year when my lease ends because I'm sure I can save a couple hundred by getting more roommates. Thanks for the advice!