Using Student Loans to Pay Credit Card

[mrmandrake]

I have a whole lot of credit card debt (post-bacc and applying to med school) on two different cards. These balances were transferred to the two cards and they have 0% APR on them for a year, so I only have to pay around $100 per month on both cards without incurring any additional charges.

My question is, I've been accepted to medical school and I plan to overborrow just enough to cover these credit cards. Does financial aid come in the form of a check that covers the whole year? For example, let's say tuition is 40k/year. Will I receive a check at the beginning of the year for 15k(to cover housing/books/etc...) which I can deposit into my bank account and do anything with?

Educational debt is better than this credit card debt and with classes costing me $1000/class in my post bacc, I had to do whatever it took to get into med school. Thanks for any advice.

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[tinkerbelle]

My question is, I've been accepted to medical school and I plan to overborrow just enough to cover these credit cards. Does financial aid come in the form of a check that covers the whole year? For example, let's say tuition is 40k/year. Will I receive a check at the beginning of the year for 15k(to cover housing/books/etc...) which I can deposit into my bank account and do anything with?

Your check will come from your school (they initially get your loan money, deduct tuition/fees for that semester, and then give you the rest of it). You will get your loan refund check in two disbusements - one in like July or August and the other in December or January. Or at least this is how non-private loans usually work.

 

[mrmandrake]

Thanks for the reply. At least I know I can get rid of some of this debt with my student loan and living a bit frugally for a year.

Your check will come from your school (they initially get your loan money, deduct tuition/fees for that semester, and then give you the rest of it). You will get your loan refund check in two disbusements - one in like July or August and the other in December or January. Or at least this is how non-private loans usually work.

 

[TMP-SMX]

Yeah you'll get half the first semester and half the second semester.

 

[Habeed]

The bad news is that you can't "overborrow". They give you a loan limit, and that's that. However, you do get more money than the bare minimum you need to live on, to do with as you please. If you live very frugally, you would be able to pay off or at least make the payments on your credit cards.

 

[alwaysaangel]

The bad news is that you can't "overborrow". They give you a loan limit, and that's that. However, you do get more money than the bare minimum you need to live on, to do with as you please. If you live very frugally, you would be able to pay off or at least make the payments on your credit cards.

Agree with this.

You can't ask for $100 more per month to pay the credit card off - in fact cost of attendance rules specifically exclude personal debt. A friend of mine can't even get our financial aid office to increase his to pay for an educational loan that has no more deferment or forebearance.

So you're going to basically have to REALLY watch your budget and make sure that you can live off of $100 less/month.