Private Student Loans Hold No Restrictions | 11.06.09
If 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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