My daughter just got word that she was accepted to her first choice school...that's the good news. We can cover her tuition and books, but we will be coming up short for her living expenses. We have told her that we will pay rent, she has to pay food, utilities and misc through a part time job. We will not qualify for Financial Aid, I guess we make too much (though it doesn't feel like it!)

My question is, will we for sure get the unsubsidized Stafford? Do they give it to everyone? Also, will it cover living expenses if she lives in an apt. off campus? How does this work.

I wish I could stop stressing long enough to be as excited as my daughter is!

Another issue is that she already took out a private student loan to study abroad this summer; prior to her finding out that she was accepted. Will this have any impact on the Stafford?

Thanks for any and all advise!

I believe only subsidized Staffords are awarded based on need, so she should be able to take an unsub even if she does not qualify for grants or other aid. The limit will be based on her year in school, which as a first year is around $2650 I believe, as well as by the school budget or 'cost of attendance'. You might also look into a PLUS (parental) loan, though I'm not sure if those are need-based or not. Personal credit is not considered with regard to federal student loans, so having a private loan should have no effect on getting federal student loans.

Student loans are to be used for educational related expenses, which does include room and board. It sounds like she is living in off-campus housing though (apartment or something) which may be a bit of a grey area. However, I've yet to hear of anyone actually being audited for how they spent student loan money. However, since you're paying the tuition and books out of pocket anyway, the student loan money will apply towards this balance. The student loan will not come directly to her, but rather to the school. Then you can make up the difference by giving your daughter money to pay for other expenses that you would otherwise have paid towards tuition.

I should clarify by saying she is transferring in as a junior so I believe the loan amount is a little higher.

She and I decided that living in an apartment would be better than the dorm and also less expensive since she would have a roomate (or several).

Get a FAFSA filled out now. She will qualify for unsub loans and you can also take out PLUS Loans as well!

She might want to relook at the private loan for the summer abroad. She may qualfiy for FA for that too!