SHOW ME THE MONEY!!!!!

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Regina330

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Ok, I am clueless when it comes to the whole financial aid/loan process. I realize that schools go over your FAFSA and financial info and figure out how much federal aid you can receive and then give you the remainder you need to be covered by loans. I know that they give you a budget and that is what you base how much you apply for in private loans. So here is my problem:

Tuition is NOT cheap at USC and I also do not have a dependable car at the moment. There are a million and one things I need to get (ie: down payment on apt, cross-country travel costs, furniture, laptop, etc) before I go, so a car is not really working into the equation. Does anyone know if you can get extra $ from your private loans to cover a car cost? Also, I was just approved for an outside scholarship and I believe that USC may have already worked out my financial info. Do you know if the school can adjust your budget afterwards or do can I possibly add that extra money to my personal loan and get a car?

I know this is confusing, I may not have stated it clearly, and you pre-dents might not know the answer to this, but I figured I'd give it a shot! :confused:

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Regina,

I will try to answer some of your questions:

Here's the run down...Doesn't matter how much your "cost of attendance" is for an academic year ($35,000 or $65,000), the government Stafford Loans will loan you $38,500.00 ($30,000 unsubsidized and $8,500 subsidized) for professional graduate school programs. This amount is the MAX amount if you'll have no family contribution or outside scholarships according to what you have indicated on FAFSA.

For example: Let's say you're going to Dental School X and the total cost of attendance (tuition, books, instruments, room and board, etc.) is $50,000.00 a year. Subtract $38,500 from $50,000 you'll get $11,500 as remainder. The amount of $11,500.00 is what you'll need to get from PRIVATE LENDERS/LOANS which is based on your credit and/or your co-borrow's credit.

Recap: $38,500 from the government loans
$11,500 from private loans
$50,000 total

Now let's talk about your situation:

So let's say that USC have already budgeted your financial aid package/your total cost of attendance for 2002-2003 academic year to be $50,000 (for sake of easy math). There is no way or how that you will be able to borrow more than $11,500 from a private lender for other purposes (a car for an example) because the private lender/loan company will VERIFY with USC if $11,500 is the actual remainder amount that you'll need to cover the rest of your "cost of attendance" after government loans!

Let's say you know that $11,500 is all you need from private lenders to reach $50,000 (because you already have $38,500 from the government), but you request to borrow $15,000 instead on the loan application thinking that you can use the extra money for a down payment on a new Mercedes if you get that amount.....the private lender will not lend you that amount because USC will tell them that you, Regina, only really need $11,500! You see what I'm saying?

Private lenders will not lend you what ever amount you apply for, they will only lend you what ever you'll need according to USC's budgeted "cost of attendance" minus government loans.

Now about your outside scholarship situation....couple of things can happen...

1) your outside scholarship will send the money/award directly to USC's financial aid office and USC's financial aid office will say..."Oh wait, Regina has been awarded a $3000 scholarship for an outside source, let's credit $3000 in her Bursar's account and send her a statement to request $3000 back from her government Stafford loans"! Basically, what ever amount you are awarded from your scholarship, the financial aid office will deduct that amount from the $38,500 of the government loans. What they're trying to say is...if you have this free money, why borrow more money, especially from the government. [NOTE]this means that you'll receive less government cheap interest loans and your high interest private loan amount will not be affected. Kind of works as if you'll have Family Contributions.

2) Since you did not indicate on your FAFSA that you'll be getting scholarship from an outside source (because you didn't know at the time that you will), the USC financial aid office will not know anything. If the outside scholarship source sends the award/money directly to you at your home or direct deposite into your checkings account, then baby, you now have MO MONEY, MO MONEY, and MO MONEY!!! Now we're talking you'll still get the $38,500 from the government, $11,500 from the private lender, and PLUS what ever amount you received from the scholarship!!

I hope I didn't loose you trying to explain all of this. Bottom line is if the USC financial aid office finds out that you're getting free money somewhere (a change in your ability to pay tuition), they will adjust your "need" accordingly! If USC financial aid office don't know...then you're in good shoes for that new Benz!

Hope I didn't confuse you. :cool:
 
Included in that estimated cost of attendance budget are allowances for transportation and misc expenses. Likely not enough to make monthly payments on a new Mercedes, but if you skrimp elsewhere perhaps enough to make the payments on a fairly new reliable gas miser. After you get your school loans, then you go to the car dealer or trusted private party (if you are lucky). If you have a good (squeaky clean) credit history and can make a decent down payment, banks may be willing to finance the auto loan since you are a dental student with a promising career. You will also be required to have full insurance coverage on the vehicle in order to protect the bank's interest.
 
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