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Take out private student loans?

Established Contributor

Take out private student loans?

So I just found out that I will be getting my fin aid later this August, which is good.. The problem is that I need a secruty deposit and pay for rent 1st wk of August. I'm contemplating if I should just use my card, and pay it off quickly after I get my fin aid, or just take out a 5k student loan, pay for rent and deposit, and use the remaining loan pay off my other CCs. (technically, those cards were use for school purposes)..

 

Oh and one other prob is that I just had a CC app spree.. lol

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4 REPLIES
Established Contributor

Re: Take out private student loans?

I just called WF, and as it turns out, they will send the funds directly to my university, so it beats the purpose of appyling for student loans..

Starting Score: (1/15)TU: 690 EX: 690 EQ: 711
Current Score: (2/16) TU: 690 EX: 684 EQ: 690
Goal Score: (7/18) 800+ for all three bureaus

Take the myFICO Fitness Challenge
Gardening until July 2018!

Message 2 of 5
Established Contributor

Re: Take out private student loans?

After tuition and other uni costs are covered by the SL, any remaining balance is sent to you. (Unless you cancel the overage which sends it back to the lender and reduces your loan principal.)

Message 3 of 5
Valued Contributor

Re: Take out private student loans?

If you read the posts in this forum, you'll find plenty of good reasons to keep your total student loan debt as low as possible, and to avoid private loans if you can find any other way to finish your education.  Can you get a part-time job between now and August to cover your security deposit and first month rent while you wait for the balance of your aid packaged to be refunded to you?  That would be the best solution, you'd pay no interest, and not start the school year with a large amount due on your credit card.

 

Now is a good time to take stock: What's the least amount of student loans you can get by on? What do you need to do to use your new credit cards responsibly and set yourself up to graduate with $0 CC debt rather than a massive bill that might make it hard to start loan payments?

 

In any case, I would never use private SLs to pay CC debt.  Private SLs have very minimal protections and options if you find yourself unable to pay (unlike federal loans) and they cannot be discharged in bankruptcy (unlike CC debt).

Message 4 of 5
Highlighted

Re: Take out private student loans?

Do not take out private loans!!!!

 

Grants/scholarships, work for the money, sit out a semester and work for the money, family/friend loans and federal loans. 

 

These should be your only options in that order.

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