Unique Situation: Use of Unsubsidized (Stafford) or Grad PLUS Loans for Living Expensive if Tuition is Paid in Cash/Deposit?

[RC123_TA]

Hello all,


Incoming M1 with less knowledge about student loans than I should have, but I am trying to catchup. I am in the extremely lucky and grateful, albeit sad and unique situation where the death of a close relative has led to the earmarking of my tuition to be paid in full by their estate, but not my living expenses/COL (I've estimated COL to be around $21,000 with a tight-budget, medical/dental insurance, housing/transport, etc.). Without going too in-depth into the situation – this family member was terminally ill, we were very close, and they always supported my goals. This was an extremely generous goodbye gift - but they did want me to be responsible for a portion of the bill so they left COL up to myself (a tiny price to pay in relation to their generosity).


My question is - am I able to utilize (preferably) Unsubsidized Stafford Loans or (less preferably) Grad PLUS Loans to cover the ~$21,000 in living expenses even though my tuition is paid in cash/deposit from an estate? I don't know how this would be viewed by the financial aid office, etc. I could try to secure/use the $21,000 loan towards tuition, have the difference paid/deposited, and then try to be reimbursed $21,000 from the estate for COL, but I think this would take some conversations and potential legal maneuvering by the Executor of the Estate. I am worried because I feel that I’m already behind-the-ball (just filed FAFSA), and I have no knowledge of Estate Law or if that would take any significant amount of time.


I appreciate any/all advice on this from anyone with experience/more expertise in this area. I apologize if a similar question has been asked or if this is the wrong forum to pose this, but I've been scouring SDN/Reddit/other resources and haven't been able to find a straightforward answer.



Thank you so much!



(btw 31-yo non-dependent with no previous Stafford/Grad PLUS loans if that is relevant)

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[chilly_md]

As far as I know, once you have filled the paperwork, you can take out federal loans up to the cost of attendance determined by your school. You should work with your school’s financial aid office to determine how disbursement works and if they automatically deduct tuition first before providing the funds for you to use.

 

[voxveritatisetlucis]

yes

 

[UsernameChecksOut]

Hello all,


Incoming M1 with less knowledge about student loans than I should have, but I am trying to catchup. I am in the extremely lucky and grateful, albeit sad and unique situation where the death of a close relative has led to the earmarking of my tuition to be paid in full by their estate, but not my living expenses/COL (I've estimated COL to be around $21,000 with a tight-budget, medical/dental insurance, housing/transport, etc.). Without going too in-depth into the situation – this family member was terminally ill, we were very close, and they always supported my goals. This was an extremely generous goodbye gift - but they did want me to be responsible for a portion of the bill so they left COL up to myself (a tiny price to pay in relation to their generosity).


My question is - am I able to utilize (preferably) Unsubsidized Stafford Loans or (less preferably) Grad PLUS Loans to cover the ~$21,000 in living expenses even though my tuition is paid in cash/deposit from an estate? I don't know how this would be viewed by the financial aid office, etc. I could try to secure/use the $21,000 loan towards tuition, have the difference paid/deposited, and then try to be reimbursed $21,000 from the estate for COL, but I think this would take some conversations and potential legal maneuvering by the Executor of the Estate. I am worried because I feel that I’m already behind-the-ball (just filed FAFSA), and I have no knowledge of Estate Law or if that would take any significant amount of time.


I appreciate any/all advice on this from anyone with experience/more expertise in this area. I apologize if a similar question has been asked or if this is the wrong forum to pose this, but I've been scouring SDN/Reddit/other resources and haven't been able to find a straightforward answer.



Thank you so much!



(btw 31-yo non-dependent with no previous Stafford/Grad PLUS loans if that is relevant)

My condolences on the loss of your family member.

You are entitled to borrow up to the full cost of attendance as determined by your school. This includes living expenses, as well as other incidental expenses that your school will include in its breakdown - such as required medical equipment (e.g. stethoscope), healthcare plan (unless you waive that), books, travel and miscellaneous line items.

Your school will work with you on the exact numbers, potentially subtracting out the amount paid by the estate, but the answer to your question is absolutely you can borrow what is needed to make up the difference. All the best.