What is the average monthly cost of student loans?

Can student loans be used to cover cost of apartment rent/utilities/personal living expenses? Or...

• OK, so after this fall semester I am transferring to a different university and there, my tuition will cost about $3600.00 per semester. My parents will pay for all of my tuition/other college expenses. However, I am going to be living in an apartment instead of in a campus dorm. I will have to pay for my apartment and all of my living expenses by myself--my parents will ONLY pay for my education. So, I will NOT need a loan to pay for my college education expenses. Since I am a a pre-dental student, I am not going to have a job during undergrad. I want to focus on my grades and extra-curricular's/volunteering. So, my question is this: What type of loan could I get to cover my apartment rent and living expenses? What lender is good for my situation? I do not have any credit, but my parents have EXTREMELY great credit...but I would rather be in control of my loans instead of my parents being in control of them. I don't know if student loans will cover my living expenses (apartment rent/utilities/personal living expenses). Help! What can I do?

• Answer:

  Since you have no credit it's unlikely you will be able to get a loan on your own. If your parents are willing to co-sign for a private student loan, that money will be sent to you and them directly and you can use that for living expenses. Private student loans, like federal loans offer an option to defer payments until after you leave school. However they have a higher interest rate than a federal student loan. As such you should borrow smart with them. Only take out the absolute minimum you need. Shop the lenders for the best rate and fees at sites like http://www.studentloanconsultants.com and check each of the lenders website for specific information about re-payment and discounts that may be available. I'd approach your parents and ask if they'd be willing to pay for the living expenses and let you pay for the tuition. Then you could apply for federal student loans after completing your fafsa. If you get a federal student loan you wouldn't need them to co-sign although you'd need to show their income if you are still a dependent under the federal guidelines.