Can You Use Student Loans for Living Expenses?

Where a lot of the student loan lenders only provide loans to students who are enrolled at least half-time, Sallie Mae also caters to students who are enrolled for less. Sallie Mae not only lends to degree-seeking students but to other students too. It is, therefore, the best loan to cover the full cost of attendance, including school-certified living expenses, for students who are doing career training, short certificates, and diplomas. Your total cost of attendance may include expenses like books, meals, housing, and transportation along with the tuition fees.

Sallie Mae loans do not have any origination or prepayment penalty fees attached and they also provide an autopay discount that can help lower the interest rates you can get. Moreover, its multiple repayment options can help people choose the suitable one and pay back conveniently. They do have a minimum credit requirement on their loans which is why many students may need to cosign the loan with a creditworthy cosigner. After 12 continuous and on-time payments, students can apply for a cosigner release.

College Avenue claims to cover 100% of your cost of attendance which includes tuition fees, books and supplies, housing, transportation, and other college-related living expenditures. Since they offer tailored private student loans and refinancing options to their borrowers, you can even just borrow the amount needed to cover the gap between tuition costs and other education-related expenses if you do not require the full funding. However, the expenses will need to be school-certified for loan approval. They also allow loans for summer school that can help you graduate earlier.

They have multiple flexible repayment options that borrowers can choose from including Full Principal & Interest Payment while in school, Interest Only Payment in school, Flat Payment in school, and Deferred Payment. Moreover, they have flexible repayment terms of up to 15 years.

Moreover, College Ave offers multi-year approval, summer school loans, and loans to international students with an eligible cosigner. Students can apply for a cosigner release upon meeting the conditions necessary. Students are, however, required to maintain a Satisfactory Academic Progress (SAP) for the loan.

Earnest, founded in 2013, is one the leading student loan lenders providing great customer service and the best rates. They have a 100% Rate Match Guarantee under which they will match rates from any competitor and upon finalization, also give you a $100 Amazon gift card.

Earnest loans can cover up to the full cost of attendance for undergraduates and graduate students. They also have degree-specific loans including MBA loans, medical loans, and loans for students studying Law.

Their simple and transparent application process helps borrowers to know exactly what they are eligible for and apply for the loan in minutes. You can also prequalify for the loan without a hard credit inquiry. In case there is confusion while applying, you can apply over the phone and the representative can guide you through the process for the best experience.

Earnest loans to only degree-seeking students and requires the borrower to have a good credit score. Most students do not have good credit and, therefore, they have to apply with a credit-worthy cosigner. Moreover, Earnest does not lend to Nevada students.

Founded in 2015, Ascent is an online lender that offers private student loans to undergraduate and graduate students. The loans they provide are primarily to cover the tuition costs, but you can use the surplus to pay for college-related living expenses like room and board, housing, rent, transportation, etc.

They have loans for everybody that include non-cosigned credit-based loans, cosigned credit-based loans, non-cosigned outcome-based loans, and cosigned student loans for international students. Ascent is actually one of the very few lenders that lend to international students in the U.S.

High-performing students who are unable to find a cosigner can also benefit from borrowing from Ascent as their outcome-based loans do not require a minimum credit but are based on merit. It requires the borrower to meet their school’s Satisfactory Academic Performance (SAP) and maintain a GPA of 3.0 at the minimum.

SoFi launched its private student loans program in 2019. Their loans can cover all of the school’s certified costs and education-related personal expenses.

What makes SoFi loans unique is the reward points they offer to their member borrowers. Upon carrying out various activities like checking your credit score or using their app, SoFi awards you with points. These points can go directly towards your student loan to help pay it down or can be redeemed as cash too. Borrowers are also eligible for a 0.25% reduction in rates when they sign up for automatic payments.

Returning borrowers for second and subsequent private student loans with the same cosigner can get an additional 0.125% discount on the rates, and getting a rate quote takes as little as 3 minutes. This lender has a No Fees policy that makes the loan much cheaper than many of its alternatives. Students can apply with a cosigner if they are unable to meet the credit requirements and after 24 consecutive on-time payments, they can apply for a cosigner release.

Citizens Bank is one of the largest and most experienced lenders in the U.S. They offer private loans and refinance loans to undergraduates, graduates, and parents.

The best thing about Citizens Bank loans is that they offer multi-year approvals that enable students to fund their four-year stay in college with only one application. This saves quite a lot of time and stress of applying over and over again.

Moreover, they allow prequalification with a soft credit check and you can borrow up to the total cost of attendance that does not only include the tuition costs but can also cover books, supplies, room and board, and any other education-related living expenses. You can also get a 0.25% rate discount by signing up for auto-pay and an additional 0.25% rate reduction as a loyalty discount. Citizens Bank charges no origination fees, application fees, or prepayment penalty.

MEFA, or Massachusetts Educational Financing Authority, has been around since 1982 and is quite experienced in providing some of the best and affordable financial products to individuals. They specifically mention on their website that you can use their loans to pay for living expenses such as off-campus housing, as long as it is a part of the school’s certified cost of attendance. This makes them a great choice for students looking for loans to cover tuition and as well as other living expenses while in college.

They provide private student loans to both undergraduate and graduate students along with an option to refinance existing loans. MEFA has a convenient and easy online application process and you get an instant decision after submitting a complete application on their website. Moreover, MEFA offers 5 different repayment options, which is higher than what most competitors offer. For their deferred loan repayment option, borrowers can enjoy a stress-free deferral period of up to 60 months.

However, international students are not eligible for this loan and there is no multi-year approval available.