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Can I get a student loan for this?

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scotchlonghorn
New Member

Can I get a student loan for this?

Basically I have a full-ride scholarship to my university. In addition this scholarship drops my monthly rent to around $120. In total my income is over the $15k threshold that it seems like most loans require to not need a cosignor. In addition my credit score is about 730. Will I need a cosignor? I would like about $5000 to cover my living expenses.

 

I would like this money because I have a rather large expense I will need to cover coming up in early February, so I would like to use money that I would normally use for books, rent, other living expenses, etc. to cover this. I would use the loan money from the student loan to cover it. I am over-estimating my expenses to ensure I have enough. Whatever I did not need I would not use and just pay back to the loan. The loan would be whatever the standard length is, but I would pay it back this summer. 

 

Will I be able to get this amount of money through a student loan? I have not looked at any applications and what is needed, but I feel lenders would wonder why I need a student loan, because in most situations I would not. However, the field I work in can be volatile at times and now is one of those times. I have other contracts in place that should be in the $3000-$4000 a month range starting in April, so my income will be sufficient to pay this loan back by this summer. People may ask why I do not get a personal loan, but I just feel it will be much easier to get a student loan since I am a student and it seems they just throw that money at anyone these days (at least they have with my friends). 

Message 1 of 4
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SCF
Valued Contributor

Re: Can I get a student loan for this?

For federal loans (which is where I would start first, even if you intend to repay the money quickly), your borrowing is based on a formula involving the schools Cost of Attendance, your Expected Family Contribution and other aid received (like you scholarship).  I would ask your financial aid office if you are eligible to borrow money to cover living expenses based on that formula.

 

Private lenders generally have their own formula for what they are willing to lend, some of them simply set a number and others also have a formula based on the Cost of Attendance - you would need to look through the loan terms for the lenders you are considering to see what amount they would be willing to lend you.  From the posts on these forums, it seems like a lot of private student loan lenders want a cosignor almost by default, probably because even with a good credit score, students generally have very little income and its hard to predict if they will be successful after graduation.

 

I would reccomend doing some more research into other conventional lending options for your upcoming big expense, since student loans aren't mean to cover expenses not related to schooling or living expenses while at school anyway, you may find it to be cheaper or easier to obtain.

Message 2 of 4
dtulonghorn
New Member

Re: Can I get a student loan for this?

Well the loan money would be used for my living expenses, so as far as I can tell I would be using the money as they intend. Normally I would not need loan money to cover those expenses because I make enough, but in this instance I will be using the money I normally would devote to my living expenses, for some business expenses and the loan money for my living expenses.

Message 3 of 4
Luscher
Valued Contributor

Re: Can I get a student loan for this?

Yes, you can take out as much as the school costs, and pretty much and money sent to the school for the bill will be put towards your bill, and then the rest will be sent to you
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