What If The Financial Aid Package Isn't Enough?

[Dr JPH]

I applied for the maximum $38,500 in Stafford Loans.

I figure if that amount comes in, then I won't have to borrow from any other source and I will more than likely be able to cut back on the loans in future years.

Do people usually have a problem getting the full Stafford amount?

What should I do in the meantime in case I don't get the amount I need to cover expenses?

Thank you

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[detm78]

I think the difference can be made up in other loans, which I've heard termed "alternative loans". You'll have to apply for these other loans from a lender that the school can refer you too.

I think this is how it works.

 

[LoanGrl]

I work with NOWLoans, and we always advise our borrowers to apply for our alternative loan (called Signature) at the same time they apply for our Stafford loans. That way if they need the extra money, all the paperwork is already done, and it makes it easier and more efficient for them and the financial aid office. We also advise them to budget their money, and pay back what they don't use. The alternative loan just bridges the gap between where your Staffords leave off and the cost of your education. Alternative loans are credit-based loans though, so either you or a co-borrower should have good credit. The fee structure on it varies depending on your (or a co-borrower's) credit. If you want more information about this, it's on our <a href="http://www.nowloans.org" target="_blank">web page</a>.

 

[Dr JPH]

sneezy and loangrl

I appreciate the responses.

Do most people get the amount of Stafford they apply for?

I will start investigating the alternative loans.

Thanks again!

 

[Sugar72]

Yes, I believe that all us citizens are eligible to recieve the full amount of stafford loans available to them based on the level of education. Graduate level it is 18,500. You can request less if you want. Only 10,000 of it is subsidized per year(interest free for you while in school).

 

[paean]

If your FAO certifies you for the Stafford loan amount, you should have no problem getting it. You are eligible for 8,500 subsidized, and up to 30,000 unsubsidized (some schools less than 30K unsub if the student budget is lower). The only reason people get turned down for Staffords is if they are in default on previous student loans. If you need alternate loans because you need more than 38,500, start looking at different sources. If the stafford will be enough, don't bother. You won't need them, and they tend to be expensive. Sugar72, you have the sub and unsub amounts switched.

 

[detm78]

JPHazelton,

Hi, I called my school's FAO yesterday. I think what you get in Stafford loans (sub and unsub) depends on your EFC (as determined by your FAFSA). You'll get Stafford loan amounts that equal your financial need (school budget - EFC).

As an independent student (which on some paperwork handed out by my school it stated that all grad and professional students are) my EFC was 0. So the lady said I am eligible for $38,500 in Stafford loans. But based on my parents tax info, I was not eligible for any other monies or low-interest alternative loans. So I may have to make up the rest in alternative loans with higher interest, if my parents can't put me through.

You can try talking to a Financial aid counselor at your school. Hopefully they won't be too busy and will be able to really help you out with your questions.

 

[Jersey Girl]

JP,
I just applied for alternative loans through a company called Key. They have a medachiever loan for medical students. I did not need my parents to cosign for this loan, very surprisingly. I was approved for 12,000 dollars in less then 48 hours. I don't have any credit history other than a low limit credit card! Apparently, this company realizes that as a medical student you are a good investment. The interest rate is higher than that of the Gov't loan, but it is reasonable. If you are interested you can apply over the phone by calling 1-800-keylend. They just asked for my name, birth date, ss# and address. It took like 10 minutes. Good luck.

 

[analu]

Hi jersey girl, would you be able to share some of the details of that key loan, like interest rate, payment plan, capitalization, origination fees, etc.?

Thanks in advance!

 

[Jersey Girl]

sure. Here are some of the terms of the loan. Borrower is a first year student, all payments are deffered during the 4 year in school period and up to 4 years after graduation for a residency program. Interest rate prior to repayment is 4.20%, and the interest rate during repayment is 3.90%. You can take up to 25 years to repay debt, but no longer than 25 years ( The years start counting after residency). If you take less time to repay, they reward you with lower interest. Disbursements are made in one half of the annual loan amount on Sep 1 and Dec 1 of each year. An initial loan fee of 6% is added after final disbursement.

I copied that stuff almost word for word for you. I know that the interest rate is much higher than the Govt loan, however my schools financial aid office said Key has the most competative rates right now. Private alternative loans will always have higher interest rates than the govt loans. It's the med achiever loan for medical students only.

 

[analu]

Thanks for the heads up, jerseygirl, I'll check it out. It does seem a much better deal than MEDLOANS' ALP.

 

[Jersey Girl]

no problem

 

[Jersey Girl]

I beleive that it gives the money to the school, then the school gives that money directly to you. You do get the chance to put it into your account, it just has to go to the school first.

 

[eagle26]

Hey Jerseygirl,

You should be the spokesperson for the Medachiever Loan! After reading your post and knowing that I would run into problems with the aggregate loan limits, I went ahead and looked into it. I applied on Monday, asked for an additional $12,000, and was approved by Wednesday. I'm very satisfied with their service (so far). The only problem I see with the loan is the 6% fee they tag onto it after final dispersement. Oh well. Thanks for the tips!!

Joe

 

[Elena]

I know the initial 6% stinks. I have no desire to be the spokes person for med acheiver, trust me. I just want to help people out when I can. If the info I provided helped you, I am glad. Good luck.

 

[shorrin]

I'm kinda green about fin aid stuff. When I looked at the stafford loan site it says that the max is 18,500 in sub/unsub loans.

Where do you guys get the 38,500 number from?

 

[analu]

Hi shorrin,

I know it's confusing...$8500 subsidized, $30000 unsubsidized, $38500 total. Medical students are allowed a higher limit than other grad students. Look at the fine print on Stafford limit descriptions...should say something like "certain health professions students may quality for higher limits."

Hope this helps!

 

[shorrin]

wow, I was all ready to get turned down for medloans and not go to school this year.

This is the best news I've heard all day. Thanks!

 

[bostongirl22]

so when do we see any of this money from the school?

 

[Elena]

You won't see most of it. The stafford loans go directly to the school, the school takes it and pays for your tuition. Whatever is excess, you will see. This is the money you use for costs of living. Some schools give you the excess in a lump, some give it to you in monthly disbursements. Even your private loans are handled this way. Depending on your school, you will get your private loans in a lump, or disbursements. My school gives the excess money from the stafford loan and any private loan money in $1500 monthly disburesments. By January, if there is any money left, they give that to you in a lump to last the rest of the year.

 

[titanium]

to those who have gone with the key medachiever, did they verify the amount of the loan against the school's budget?...e.g. school budget is 40K, your financial aid gives you 35K, then key puts a MAX of 5K on the loan?

i probably need to exceed the school budget. will this loan come thru for me?

 

[eagle26]

•••quote:•••Originally posted by titanium:
•to those who have gone with the key medachiever, did they verify the amount of the loan against the school's budget?...e.g. school budget is 40K, your financial aid gives you 35K, then key puts a MAX of 5K on the loan?

i probably need to exceed the school budget. will this loan come thru for me?•••••You can't exceed the school budget. Any educational loan will give you the difference in what you get from federal loans and the school budget. For me, I need to borrow approximately 10,000 additional to make up the difference. However, I understand where you are coming from, since I have a car loan that is not factored in. My advice to you (and to me) is to live as meagerly as possible so you can use the extra money for these types of things...or sell my car, but I'm not going to be doing that! :wink: