I would highly hesitate using student loans to live off of. I also received aid from loans that don't accrue interest, and I didn't have to take out many this year because I received funding to pay for my tuition. That said, I think there are a few reasons why living off loans as a student today is a bad idea.

First, there is too much uncertainty in the job market. Students often overestimate how lucrative the first job is that they accept, and the income isn't enough to meet their financial expectations. The second reason is you have to pay all of those loans off and not everyone is able to pay off their loans in 6 months. I've talked to people who graduated in the mid-90's and are paying off their loans as of today. When you look at the principle, and then start adding interest it adds up over time. I'd say another reason to not live off your student loans is because living expenses are highly adaptable and it's easy to reduce the expenses. A student loan could be well beyond what your actual needs are, and taking out that much isn't financially responsible.

If your rent is too much, find a different place to live. I understand that might mean having more roommates but that's part of the deal. Yes, I know how much roommates can suck. Consider reducing your travel expenses by taking the bus as much as possible, using a bike, or limiting your car to absolute needs. Scale back on groceries by purchasing generic foods or go to a cheap grocery store and use coupons. If your grocery store has a discount program with a gas station, use it. Keep insurance costs to a minimum-- if your car is older and used, get liability only.

It's also a burden to ask parents to cosign because if in the event you cannot pay-- and it does happen-- they are the ones saddled with the bill. I've read so many stories where this happened and the loan companies used threats, harassed, and went after the parents. I know I must sound "doom and gloom" to you, but I'm also being very realistic. I'm currently in college and this is not my first venture. If I had known these things back then, I'd have made better financial decisions and my student loans would be much lower than they are now. Mine are about 20K, which is pretty minimal compared to most people-- but to me, that's a lot and I'll end up spending the next 10 years paying them off. I'd rather be saving up for a house and moving into one in 10 years and I don't think that's going to happen.