Are Using Student Loans for Living Expenses a Good Idea?

Your FAFSA will give your college the information it needs to determine your Expected Family Contribution. This amount will be subtracted from your cost of attendance to get the total amount you’re eligible for in subsidized loans. You can use the Fafsa4caster to see how much aid you would be eligible for.

Using Your Financial Aid Surplus

If you qualify for a federally-backed student loan, you can use your financial aid disbursement surplus to pay for your miscellaneous living expenses. In most cases, your disbursement will be forwarded directly to your school’s financial aid office, where the amount of your tuition will be taken out. Continue Reading