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Author Topic: Do private loans get factored into my school financial aid?  (Read 572 times)

JD09

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Hi everyone,

I am little confused, if I take out a private loan with a bank that is not stipulated to be for school expenses, does the school take it into account?

So, I am borrowing 10K from My Rich Uncle to pay off debt and get me to school. It is a private loan that does not go through the school, will the financial aid office decrease their award to me by 10K?

How will they even know as the loan does not even go through their office?

I would appreciate any help. I donít want to spend this 10K (received today) and find out that my school knows about it and expected me to use it.

THANKS IN ADVANCE FOR ANY HELP!

Guerito

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Re: Do private loans get factored into my school financial aid?
« Reply #1 on: June 14, 2006, 11:51:54 PM »
My understanding is that the school does not know or care.  Your personal finances are your responsibility.  You are able to take out a personal line of credit or home equity loan or any other kind of loan you would like and it will not affect your student loan amount.  You can only take out the stipulated amount in student loans that your school budgets for you, however. 

BigRig

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Re: Do private loans get factored into my school financial aid?
« Reply #2 on: June 15, 2006, 12:15:06 PM »
It is also my understanding that a lender (at least for GRAD Plus) will not let you borrow more than the estimated total cost of tuition (estimated, often cases way too low, by your institution) - aid/grants/scholarships, etc.  You can borrow up to the difference. I am assuming you can borrow more than this difference in private loans or through other debt instruments, but will not get interest rate/deferment perks associated with student loans.
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chonralda

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Re: Do private loans get factored into my school financial aid?
« Reply #3 on: June 15, 2006, 01:27:53 PM »
comments above are correct. private loans, you can do whatever. student loans, and all benefits, cannot be more than schools estimate you need.
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