I have to take out about a 4K unsub loan for my freshman year. Should I just bump it up to about 6k so I can pay for my apartment? I'm going to have a weekend job and work study and with the loans, all of my tuition is covered, but I'm worried I won't be able to make ends meet for the apartment. Can I do that? Can I take out an extra 2K or so for my apartment? I'm basically clueless about taking out loans.
Depends. If the loan is going directly to your school, then increasing the amount won't help get you an apartment. You would need to get an uncertified loan, which usually sends the check directly to student, the downside is I've heard those loans are hard to come by, especially with the current condition of banks.
The maximum Stafford loan a freshman can get is $5500 of which up to $3500 can be subsidized if there is 'need'. If the $4000 you have is a Stafford loan and you do not have any other Stafford loan (ie do not also have a subsidized Stafford that takes you up to the $5500 max) then you should be able to borrow an additional $1500 (as long as your full COA is not already covered by other aid or loans). The loans will be disbursed to the school and they should refund to you any excess left after direct charges are covered.
My daughter uses her financial aid to pay for her off campus apartment. The thing to be aware of is when the school disburses refund checks. You will probably have some rent payment(s) due before you get the refund check from the school.
