Is there a catch for taking out too many private loans?

Question

I heard from a friend of mine, that if you take out too many private loans for college obviously, they will terminate you from taking out another one forever until its paid off. Is this true? Because i have taken out 21,000 this year so far for school and next year i need to take out more because of room and board.....Please let me know so i can relax...the lender iam under is JP Morgan Chase

Answer 1

I know with federal aid there is a limit to the amount you can borrow as an undergraduate each year, and there is a cap on the total amount. I don't know if the same applies to private. Ask your loan officer, they should be able to tell you and they'll give you better information.

Answer 2

The catch would be the payments. If you can't make payments you are caught. ;-)
The other answer for this is that yes, if you have too many outstanding loans, or too high of an amount lenders will start to refuse you....just like you can't get a credit card if you owe too much. Lenders always look at your income to expense ratio and a few other things as well.

Answer 3

There is a max amount of loan that a student take out a year and all together. If you are an undergraduate there is a max for total loans and a different max/aggregate for grad/professional. But it can be extended if you consolidate them to free up additional money. Good luck

Answer 4

No, as long as you can handle the payment and interest, you won't be caught.

If you live in U.S, when you cannot afford the payment, you have the right to hearing course for bankruptcy. It means you won't be caught, but you'll be lost your credit.