Private Student Loans Hold No Restrictions | 11.06.09

Posted in Financial Aid, Private Student Loans By Student Loan Network Staff

private student loansIf I had a dime every time I heard someone say, “I need more funds for school,” I would easily be able to send my entire family to Harvard…TWICE.  It’s just the way it is these days.  We’re turning over those stones, calling our rich uncle, and exhausting every avenue we know of to find those extra dollars.  Perhaps that classic Ben Franklin quote which reads, “The only thing in life that is certain is death and taxes,” should be amended to include running out of money for school.  But there is hope.  Private student loans do not have a yearly borrowing cap like federal Stafford loans do.

Now let me first start off by saying that federal Stafford loans are the bomb.  Max those out first.  The problem, however, is that there isn’t much to max out.  Depending on your grade level you are capped at a certain borrowing threshold.  Is it just me or does that sound absurd?  In fact, let me just go on record now and say that I think that is the lamest rule I have ever heard!  The cost of tuition is the same for a freshman as it is for a junior!  Why the disparity?!?  Ok, that is a different blog for a different day.  Back to private student loans.  Private student loans allow you to fill in the gap that federal loans leave, and that gap is extremely wide for some.

There is no FAFSA when you apply for a private student loan and no hassles whatsoever.  You can use your loan funds for tuition, room and board, a new laptop, you name it (assuming it is school related of course).  So don’t be discouraged.  There are options right at your finger tips.


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66 Responses to “Private Student Loans Hold No Restrictions”

  1. crystal mckay says on December 29, 2009 at 4:49 pm:

    oh my god i never know that before

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  2. Betty says on December 28, 2009 at 6:31 pm:

    Unfortunately, loans are needed sometimes. But it is much better to have loans & get that college degree then pay it off – than to not go to college at all.
    A college degree will give you so many more opportunities to make more money than working at a fast food, clerk, etc. anywhere else.
    This information is very useful.

    Reply To This Comment
  3. Cuong says on December 27, 2009 at 2:51 pm:

    I disagree completely. When I needed extra funds for my education, I applied to over 10 different banks for a private student loan. I was denied all of it. I don’t have a job and my mom is a single working mom who only makes around 39k a year. It’s not as easy or accessible like this article makes it sound.

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  4. sri says on December 25, 2009 at 5:47 pm:

    good to know, helps a lot.

    Reply To This Comment
  5. L says on December 22, 2009 at 8:44 pm:

    Good to know! Thanks for the info.

    Reply To This Comment
  6. Rachel Richardson says on December 21, 2009 at 11:22 pm:

    Great article I pass it on to my friend

    Reply To This Comment
  7. Dana says on December 20, 2009 at 8:30 pm:

    yea good information

    Reply To This Comment
  8. Cat says on December 16, 2009 at 8:39 pm:

    Great info, but aren’t the interest rates higher than those of federal loans?

    Reply To This Comment
  9. abbie says on December 16, 2009 at 12:46 am:

    thanks i will consider that

    Reply To This Comment
  10. alexandra says on December 15, 2009 at 11:16 am:

    good info helps alot

    Reply To This Comment
  11. Danidza says on December 14, 2009 at 10:26 am:

    The information in this article is precisely why I got a private student loan last year.

    Reply To This Comment
  12. em says on December 10, 2009 at 9:52 pm:

    definitely not for me!

    Reply To This Comment
  13. brittany says on December 10, 2009 at 5:50 pm:

    i didnt know that

    Reply To This Comment
  14. Pa Kou says on December 10, 2009 at 1:21 am:

    i don’t think i want loans for my first year of college.

    Reply To This Comment
  15. Courtney says on December 10, 2009 at 1:17 am:

    Good to know! I liked the quote too.

    Reply To This Comment
  16. Diana says on December 9, 2009 at 2:08 pm:

    I had alot of understanding!

    Reply To This Comment

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