How Many STAFFORD LOANS per academic year?
How many stafford loans can you have per year or is it a max per year on MPN for each academic school year? If it’s a max on MPN and that school year uses the max how do you go about getting living expenses from the school year that are suppose to be included in your pell grant and stafford loan.
Can you get additional stafford loan to cover living expense? I know most schools have a Federal Supplement Education Grant for living expenses, how do you get application for this grant?
You can only receive one Stafford loan per academic year from one lender. When you apply for the Stafford loan, your school will calculate your eligibility amount and certify the loan accordingly. There is a maximum amount that a student can receive depending on their student status and their Cost of Attendance.
Once you have been certified for your maximum Stafford loan amount, there is no more Stafford loan money that can be disbursed to you until you enter a new loan period (usually a new academic year). Students tend to take out private loans to meet the difference between the Cost of Attendance and the amount they receive in grants and Stafford loans, but this is not a wise decision. These loans can be difficult to get and have much higher interest rates than federal loans. It is a better idea to work, more than part-time if you can, and pay for your own living expenses while attending school. While it may be difficult now, you will put yourself in a much better financial situation in the long run. Instead of spending 10-30 years repaying an outrageous loan debt, you will be able to use your increased income due to your college education on buying a home, or other major life purchases.
As far as the additional Supplemental Educational Opportunity Grant (SEOG), you are automatically applying for that as well when you complete your FAFSA–there are no other forms required. Those additional funds are usually limited to students with the most financial need (0 EFC) and are therefore awarded on a first-come, first-serve basis: the sooner you apply and complete your file with your school, the more likely you are to receive this additional award. With this in mind, if you are just filing your FAFSA right now, it is highly unlikely that you will receive this grant, considering that we are already almost half-way through the academic year. To be sure, speak with a Financial Aid Counselor at your school for more information on the application requirements for the SEOG.
Lastly, do not expect that federal financial aid is going to cover every single penny of what it costs to attend your school AND all of your personal living expenses. The aid is intended to help you pay for school, not to pay for your mortgage payment, clothing, and a car, etc. Those things are NOT necessities for school. Although many students argue that they are, if you consider that you would need a place to live, or clothing, or a means for transportation regardless of if you were a student or not, you can see that they are not truly educational expenses. Also, students rarely receive a completely “free”, 100% covered ride through college–most people who have this have resorted to alternative loans. It is a better idea to work to cover your own personal expenses and use aid and federal loans if necessar to cover your tuition and books—that is after all what it is intended for.
Student Loans : How to Apply for Free Government Grants, Loans & Scholarships