Not sure if this is the best place to post this; if not, Mods feel free to move it and please accept apologies. Has anyone ever had any issues borrowing additional student loan funds above the cost of tuition? Here's the background: I understand fully that student loan funds are to be used for education-related living and personal expenses. In my situation, I require $6,000 this Fall in order to be able to pay room-and-board and expenses and to purchase a computer and medical equipment (insurance pays 80% -- I pay 20%) that will allow me to remain active and further my education. I requested $16,000 for the year, assuming $8,000 would be allotted for the Fall and I would receive a refund in the neighborhood of the $6,000 I need after tuition/fees. I will not need anywhere near that amount in the Spring or going forward, and have planned all along to either send it back to the Dept. of Education or to bank it and use it to pay tuition, etc. over the Summer (I may sign-up for additional 8-week classes starting in May and July with $$$ left-over and saved-back from the Spring refund check, if I decide to keep it). APUS, however, is awarding me only a little over $8,000 for both semesters, meaning that -- after tutition/fees -- my refund will only be a little over $2k. They're saying I don't really qualify for the $20,500/year that the DOE allows Grad students to borrow, because Fall and Spring semesters together only make up 32 weeks (two 16 week semesters) and not the full 52 weeks in a year. Meanwhile, every other university I have every attended has simply allowed students to request whatever funds they need for the year (many unwisely max-out this amount every year; many do not), then split that number in half between Fall and Spring semesters. An example being if you request to borrow $12k or the year, they allot you $6k in each semester and your refund is that amount minus your tuition/fees/books, etc. In other words, they consider the "year" to refer to the "academic year," not to a 52 week period. Am I crazy or are they?
It is fairly common for students to use some of their loan funds to cover living expenses. You probably should make sure the school is aware that you need money to cover living expenses if you haven't already done so. You can also investigate personal student loans. I know that CitiBank and some other banks offer these. CitiBank Student Loans It is dangerous to run up a large burden of debt, however. You should try to keep your loans as small as possible, you don't want to have a financial monkey on your back for the rest of your life. I have no experience with APUS, but I would assume that they are set up to accommodate working adults as well as military. Your telemarketing job might blend well with your studies. It would probably be better to have a terrible time working and studying rather than building up a huge debt by only going to school. Please be careful.
Believe me, I am aware of the pitfalls; this is the only semester I'm in a bit of a bind and need to borrow a bit over the cost of tuition. I can't see going the route of a personal student loan, however, when -- as a Grad student -- I'm supposed to be able to borrow up to $20,500/year. APUS is making out as though they can't do anything when it's clearly some policy of theirs and not a DOE rule; I'll transfer schools before I take out a personal loan when I'm already way under my Federal borrowing limit. This is, literally, the first time I've ever run into a school that just sent me an award letter with amounts for room-and-board and expenses already filled-in without ever bothering to ask me for any input as to what my actual expenses are going to be. When I asked for an explanation, I was sent this: -------------------------------------- Room and Board Step 1: Monthly Room and Board (as determined by the DOE = $415.00) x 12 months = $4,980.00 Step 2: Yearly Room and Board / 52 weeks = $95.77 Step 3: Round the weekly amount to the nearest whole dollar = $96.00 Step 4: $96.00 x weeks in program (64 weeks) = $6,144.00 Step 5: Total Room and Board is multiplied by the lesser of the two following fractions: a. Credits in budget period / credits in program (12/36) or b. Weeks in budget period / weeks in program (32/64) Option ‘a’ is the lesser of the two fractions and is used. $6,144.00 x 0.333333333 = $2,047.9997, rounded up to $2,048.00. This is your Room and Board assistance for 32 weeks. Personal Expenses Step 1: Monthly Personal Expenses (as determined by the DOE = $261.00) x 12 months = $3,132.00 Step 2: Yearly Room and Board / 52 weeks = $60.23 Step 3: Round the weekly amount to the nearest whole dollar = $60.00 Step 4: $60.00 x weeks in program (64 weeks) = $3,840.00 Step 5: Total Room and Board is multiplied by the lesser of the two following fractions: a. Credits in budget period / credits in program (12/36) or b. Weeks in budget period / weeks in program (32/64) Option ‘a’ is the lesser of the two fractions and is used. $3,840.00 x 0.333333333 = $1,279.9998, rounded up to $1,280.00. This is your Personal Expense assistance for 32 weeks. --------------------------------------------------------------- I've never seen a university do anything like this.
P.S.-- Any additional funds require that I submit a form requesting a professional judgment. They require documentation regarding each expense, what was covered, what was not, signed statements, an official price estimate from the computer vendor and a receipt afterwards or they'll bill me to recover the funds. The funds I'm allotted to borrow by the DOE and required to pay back, mind you. Further, they say that a professional judgment is not guaranteed approval, the amount approved is not determined by the student, and may not be appealed to the Financial Aid Department or the Department of Education. What is decided by the team responsible for processing the professional judgment is final.
So you are supposed to live for 32 weeks on $1280 + $2048 = $3328? Do I understand that correctly? That would be really hard to live on unless you could stay with someone for free. Rent of $400 per month would take up most of that.
This isn't really out of the ordinary. An established cost of attendance is in place at all institutions that process financial aid, but institutions often have different term systems which can affect the way your awards work.
So you think it might be an issue of terms? If so, why wouldn't they allot the funds that way. What I mean to say is, if they're running on 3 semester/year, why is my aid only for two 16 week semesters? As I stated earlier, every school I've ever attended split the award in half between Fall and Spring. APUS is trying to tell me the most I can get for an entire year is around $8,000.00 total when, as a Grad student, I should be able to borrow up to $20,500 if I wish. The only way I can get more is to jump through hoops and beg for it.
You are only eligible for the lesser of the cost of attendance or $20,500. The $20,500 is not guaranteed by any means.
This. Each school has a standardized cost of attendance, based on the number of hours taken. Paying for medical equipment from a student loan is sketchy, at best.
Everywhere else I've ever attended has allowed you to take-out whatever you wanted up to the eligibility limit with no questions asked. I know several people who have consistently maxed theirs out, some because they're stupid and blew the $$$ accordingly and others because they attend a B&M law school that won't allow students to work without written permission from the Dean and only part-time even then.
If you require it in order to attend, how is it any different from buying a computer or paying for gas/tolls as a commuter student?
UPDATE: It looks like the whole issue boils-down to the fact that they run three 16 week semesters/year instead of the standard 2 semester academic year. Although it is still a bit confusing, because they're saying I'm being packaged for two semesters, this is where the 32 week period arises from. If I decide to take a third semester, it would be part of a new FSA package and would be for two semesters as well, that would overlap into my next FAFSA award year. Am I the only one who thinks that sounds very strange? Anyway, strange or not, that, at least, explains why the numbers they sent me were so far below what I thought they should be.
