I applied for a Parent PLUS loan(not going to get it) so my question is about the subsidized student loan?
Asked by Sierra CDo they just give out monthly payments? I need it for housing, a laptop, books, etc. So pretty much I need it before the semester starts in January. I don't think they'll have any dorms open so I need to go find and secure me a student apartment which requires 1st month's rent and a security deposit. So if I explained this to them, will they give me the funds earlier? Possibly December?
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Answered by faid
The disbursement for the subsidized stafford loan will not arrive before the semester begins. Usually there is a rule that checks cannot be disbursed until 30 days after the semester begins per federal regulations. Also your books and tuition will be subtracted from the loan amount, if they have not been paid off yet. You will receive the remainder. You can ask the school to let you know when the loan check arrives, instead of mailing it out. If your classes are starting in January, it will be at least 4 weeks into January and maybe even February before you will see any funds. In the meantime, go to the financial aid office and ask if your file is complete and ready to be processed. This can hold up loan proceeds. Also, you didn't say why your parents didn't qualify for the PLUS loan. If it was due to bad credit, you maybe eligible for additional unsubsidized stafford loan in your name. You would need to present 2 acknowledgements from 2 different lenders stating that your parents were refused the PLUS loan. Present these to the financial aid office and tell them you want additional funds in your name. In the meantime, maybe you can get a loan from someone until the loan proceeds come in. Also, make sure you do not drop classes during the term or it may jeopardize your eligibility. Hope this answers your question, Good luck.
The disbursement for the subsidized stafford loan will not arrive before the semester begins. Usually there is a rule that checks cannot be disbursed until 30 days after the semester begins per federal regulations. Also your books and tuition will be subtracted from the loan amount, if they have not been paid off yet. You will receive the remainder. You can ask the school to let you know when the loan check arrives, instead of mailing it out. If your classes are starting in January, it will be at least 4 weeks into January and maybe even February before you will see any funds. In the meantime, go to the financial aid office and ask if your file is complete and ready to be processed. This can hold up loan proceeds. Also, you didn't say why your parents didn't qualify for the PLUS loan. If it was due to bad credit, you maybe eligible for additional unsubsidized stafford loan in your name. You would need to present 2 acknowledgements from 2 different lenders stating that your parents were refused the PLUS loan. Present these to the financial aid office and tell them you want additional funds in your name. In the meantime, maybe you can get a loan from someone until the loan proceeds come in. Also, make sure you do not drop classes during the term or it may jeopardize your eligibility. Hope this answers your question, Good luck.
