The cost of attendance (also referred to as the student budget) includes allowances for room and board and books and supplies. When the financial aid (including loans) exceeds the school charges the college will let the student withdraw the credit balance to pay for these expenses.

Be sure to borrow federal first. Federal loans are less expensive, more available and have better repayment terms than private student loans. The Stafford loan (a student loan) does not depend on credit history. The Parent PLUS loan does depend on credit history, but it does not look at credit scores. Instead, PLUS loan eligibility depends on the absence of an "adverse credit history" (e.g., default, foreclosure, repossession, tax lien, wage garnishment or certain other derogatory events in the last five years, or being 90 or more days late on any debt, except for mortgage or medical debt which has a 180 day threshold). Congress recently increased the annual and aggregate limits on the unsubsidized Stafford loan. The PLUS loan can be used to borrow up to the full cost of attendance (minus any other aid received).

The unsubsidized Stafford loan and the PLUS loan are available without regard to financial need. You do not need to be poor to borrow from these loan programs.

KClady,

Have you fully explored your daughter's own borrowing options? Loans are available to cover reasonable living expenses as well as tuition.

Whether you have or not, you will want to make sure that your business misfortune does not affect her credit file adversely. This might happen if, for example, she is an authorized user on an account that you have been unable to pay.

My husband lost his business, therefore our credit rating is poor. My daughter needs a student loan to finish her senior year cost of living expenses. what can she do since she does not have a co signer?

Jenn is right on this, Sue.

Lenders recognize that educational expenses extend beyond tuition and fees. Once those are paid, most programs will disburse remaining funds to you for other education-related expenditures.

Hey Sue -

I'm a FiLife intern and I've done some research on your question and found some options. First of all, from experience, if you apply for all the federal loans and it ends up being more than the amount of your tuition, you will get a refund check back from your school. That check can be used just like any other check and you can deposit it into an account or cash it.

There are options that I found online of private loans in which the loan money directly goes to you rather than going to your school - exactly what you were looking for. One such bank that offers this is Wells Fargo (http://www.filife.com/reviews/wells-fargo-education-connection-loan), where they send you the money in a lump sum and you can use it for tuition or any other college related expenses. The NextStudent Private Loans (http://www.nextstudent.com/private-loans/private-loans.asp) also directly funds you the money from your loan mailed to you in the form of a check made payable to you and your co-signer.

- Jenn