I go to the University of Memphis and I have a full scholarship that pays for my entire tuition and dorm. Then, I have the HOPE TN Lottery Scholarships which is $4000/yr and pays for my meal plan (about $630/semester). I don’t want to live in the dorm the rest of my undergrad years, but free is nice. Would it be wise to take out a student loan so I can live off campus in either an apartment or house with my friend? And how hard are student loans to pay back? I’ve come this far without having to take one out and I’m not really sure I want to.
I forgot to mention that the scholarship I have is different from others. It only covers the cost of tuition and the dorm, but not the meal plan. And I do get a refund from excess scholarship money, but if I leave the dorm, then I will not get the extra housing money that goes towards the dorm.
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I work as a loan advisor for Nelnet.
The one thing you want to check for is to see if your school will certify cost of living for an apartment that is off campus.
I would call the financial aid department to see what stipulations they have as each school is different.
If they will not certify the loan, then you wont be able to take out a student loan, you would have to take out a personal loan at a bank…
Honestly, I would stay where you are. I understand how you want to get your own place, but it adds up, and when you get the bill, you will know then it wasnt worth it.
If the school will certify the loan, then you can get a federal staffor loan at a fixed 6.8%. If you are single, and under 24, then you may be able to talk to your parents about a parent PLUS loan in their name, but good luck talking them into that if they know your housing was free.
The loan itself would not be too hard to pay off, but it is one more thing to worry about when you just graduated and your trying to find a job- not to mention if you have to take out loans next year to cover tuition and books and stuff. only 15% of students get a free ride with scholarships and whatnot…
Summary: Take the free money, it will be worth it in the end!!!
room and board is included in your schools cost of attendance. see: http://www.enrollment.memphis.edu/FinancialAid/geninfo.html
you may have to scroll down a ways to find next years estimates. since room and board is included in your cost of attendance, your scholarships should be dispersed to you so you can pay your rent and go to the grocery store. call/visit your financial aid office for more information.
if it is not possible to get those funds to pay your room and board privately, i would recommend you stay where you are until graduation. maybe you can get a room without a roommate or your friend and you can live together.
student loans are no fun to pay back. i have friends that got through school without them and started buying houses at 25-26 and other friends who took out a bunch of loans and will be lucky to own a house by the time they are 40.
if you can bear it, two or three years in the dorms is nothing compared to a lifetime of debt to pay off your decision to live off campus.
good luck!