aba51 Posted January 20, 2019 Share Posted January 20, 2019 Hi all, I am excited to start PA school in the next few months and I am trying to prepare myself financially. Like 99% of the cost of attendance, including rent, will be covered by loans. Whether it's private or federals loans, I do not know yet (but whichever has the least amount of interest/faster to pay off will be the most ideal). So my questions are, how do I go about taking out loans for rent and living and groceries, etc? Should I take out two loans, one to cover tuition and the other to cover living? Do I take out an estimate of how much I'll use on a month to month basis, or how much I'll use in a year? What if I don't use the amount of money I take out, do I still have to pay interest for that portion that's not used? I'll be pretty much working until I start school so I'll save as much as I can, but I know for sure it won't be nearly enough to cover a year's worth of living. I'll take any anecdotes, advice, or tips! Thank you for the help! Link to comment Share on other sites More sharing options...
MT2PA Posted January 20, 2019 Share Posted January 20, 2019 Your school/program determines the cost of attendance (COA) which includes tuition, rent, health insurance (if applicable), etc etc. You will only be able to take out loans in an amount UP TO the COA. Personally I think it's easier to do it all federal as you have better repayment options (and more leniency) than private. Don't stress over this yet. The only thing you can and should do at this point is fill out FAFSA. Otherwise your school will tell you when and how to fill out financial aid forms. EDIT: You pay interest on ALL the money you receive. You do have a period of time where you can return unused money. It should not be hard to estimate rent + utilities + groceries, etc etc especially if you are paying those things now. I personally recommend giving yourself a cushion and taking out a little more than you think you'll need for emergencies. You also need to consider that when you graduate it will be several months (minimum 3 usually) before you start working and you'll need to have some money saved for living, moving, exam/license fees etc. Easier to start planning for that from the beginning than to wait until your last semester and panic. Again, your school should have resources to help you figure this out. You're one of thousands of students that encounter these same questions every year. Link to comment Share on other sites More sharing options...
aba51 Posted January 24, 2019 Author Share Posted January 24, 2019 Thanks so much for your input @MT2PA! Im actually going to meet up with a financial advisor soon to talk more about my options since I'm not well-versed at all at financing. Thanks again! Link to comment Share on other sites More sharing options...
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