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How Can I Use My Private Student Loans?

When you receive your award letter from your college of choice, you’ll see a couple of important numbers listed – the estimated cost of attendance (COA), and any financial aid for which you are eligible, such as scholarships, grants, and federal loans/work study.

What is Cost of Attendance (COA)?

The COA typically includes costs for one academic year:

  • tuition and fees
  • room and board (including a meal plan) or off-campus housing
  • books, supplies, transportation, and other school-related personal expenses

Keep in mind that while some of these costs (tuition and fees) are fixed costs, others could be higher or lower based on your personal situation. For example, if you purchase used books or do not park on campus, your actual costs could be slightly less than what the college lists.

Many students will need more funding than what is included in their financial aid package to fully cover the balance, which is where private student loans come in.

What Do Private Student Loans Cover?

Great news – a private student loan like the education line of credit available from Gesa Credit Union can be used for any items listed in your cost of attendance, or other education-related expenses! The amount you are eligible to borrow will be certified by your school, and the funds are sent directly to your college.

If some of the loan will be used to cover items not directly paid through the school, such as books, off campus rent, or a laptop, the school will issue you a refund for the excess amount. You may need to pay for some of these expenses before your refund arrives; in this case, be sure to use your refund to reimburse yourself and not for personal purchases!

Example: Your school receives $15,000 from your loan disbursement. Only $12,000 is needed to cover your tuition balance. The school will issue you a refund of $3,000 to pay for out-of-pocket education costs. You can then use those funds to purchase necessary items, or to recoup what you have already paid.

How Do I Apply for an Education Line of Credit from Gesa Credit Union?

Gesa Credit Union has a private student lending solution from your local, trusted financial institution. You can learn more and apply easily online.

If you have additional questions about paying for college, consult our College Counselor, who provides free, personalized guidance on paying for college and navigating your options. 

 

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