For those who have done this: I am applying to Capella University's graduate program in Human Services - Mental Health track. What was the experience of those who used a graduate level Stafford Loan (or any loan program - subsidized or not)? Did they look at income level for your application? Co-signer? Did you do "Entrance Counseling" with the completion of an exam through FastChoice - which as I understand is linked with Capella (even if using an outside loaner)? Was it easier using a recommended loaner (if you attended Capella or a school with similar loaner recommendation selections), or one from outside the school's list of recommendations? Any tips? I've had no direct income recently, would be interested to know how best to prepare for the hurdle. I filed my FAFSA with "poverty figures" (I am otherwise supported), making my "family/personal contribution" $0. I'm waiting on my SAR, before I apply for a loan, not that it matters...not likely to get a grant with an undergraduate degree already awarded. I would hate to think that the loan would be denied based on no present personal income. What would be the point of giving a loan if you can pay for college without it? Financial aid is for poor students. I can only hope there are no crazy requirements. I understand they don't do a credit check...not that that would be a painful issue. Just glad its not on the criteria. Feedback is appreciated. - Shawn
Hi Shawn: I don't think income should be a factor when applying for your graduate loan. I just applied and received my first graduate loan for summer term '08 without having to prove income. I did an entrance exam through my university's FA--but it was easy. Do you have a lender you've used before? You should pick whatever lender would provide you the best pay-back opportunities--many lenders will give you a rate discount after so many payments. I wouldn't just roll with a lender that's given to you on the "perferred list".
Re: Hey Jared, Thanks for the feedback, man. Thats good to know they seem pretty easy with things for an education loan. I was waiting to donate blood for the loan...lol. I thought of using my credit union for the loan (easier for keeping it on a "same account" track kinda thing)...rather than a separate financial institution. The financial backing is the only thing not yet in place. Waiting on my acceptance to Capella now, and my FAFSA is processed...received my SAR today. Its starting to piece itself together....and I'm staring down the road at the actual start of the academic program in the Fall (Oct.). Thats a whole different animal. Thanks again, - Shawn
Re: Using Loan for computer purchase? Hello, Does anyone know if I can use my loan to buy a new computer for school (in addition to paying tuition), or does the money go directly from the lender to the assigned school only for tuition and books, and I would have no personal contact with the funds? Even if the latter is true (no personal contact from me with the funds), can I in some way earmark an amount in reserve to buy a computer with it? I don't know if I should take out a personal loan just for the computer - separate from the Stafford Loan (in the event I cant use it for common living expenses, and not just school tuition/books). Just thought some of you have had far more experience than me on Stafford Loan issues...wanted to get some feedback. Thank you for your input. - Shawn
>. Your student loan will go directly to your school, but any excess will go to you. For example, if you take the subsidized loan for $6500 and your tuition is only $6000, you will get the left over $500 once your college bill goes into the + category. This all depends on how your college gets disbursements (twice, three times, or four times per year) as to when/if/how fast that happens. You can use your excess to buy a new computer, books, or a night in Vegas Pell grants are only for undergrads, so you won't get that, even with a $0 EFC Finally, the reason most people (myself included) use a student loan is because the repayment doesn't start until 6 months after graduation. (or you drop below 6 credits) A personal loan begins repayment immediately. Additionally, your loan will continue deferment as long as you are enrolled in school. This can be years and years- even if you start to pay out of pocket, your loan won't begin repayment. If you can resist the temptation of taking all that they will give you, it's a great deal. They offer an unsubsidized loan too- they offered it too me more than once! I had to decline in writing. A little "car-salesman-ish" but otherwise an easy process. The entrance counseling is a 5 minute online quiz with the answers on the screen- don't worry about it for a second. Complete waste of time. Good Luck!
The last time I applied for student loans for distance learning was in 1997. At that time, what one could get was called a William D. Ford Direct Loan, which covered tuition only. Maybe someone can tell me whether anything has changed since then. But I have no reason to believe it has.
