I get grants to pay for college and it covers tuition and books, but I was wanting to get a student loan for the summer to take a class and use the rest to get a car and maybe a computer. If I do this will I not be able to get grants again bc they may think I have enough money for tuition since I got a loan. I've already applied for the my grant in the fall.
2007-03-27 18:03:47 · 7 answers · asked by spyvixen17 1 in Education & Reference ➔ Financial Aid
Also i was wanting to get a private student loan like from chase and it says they don't need school authorization.
2007-03-27 18:52:10 · update #1
No, getting a loan should not affect your grant eligibility. Loans are usually added to your financial aid package after your grants. In fact, a school is, by law, required to calculate your Pell Grant eligibility before doing anything else.
Now, in most cases, your loan will need to be certified by the school. It is possible that the Chase loan you described is one of a handful of "direct-to-consumer" loans that could be used (though they shouldn't) for non-educational things (like the car you plan to purchase). These kinds of loans are okay, AS LONG AS you're certain that you're getting the best possible interest rate. In general, school certification makes a lender "comfortable" -- it assures them that the students are using their educational loan for educational expenses, which makes the loan low-risk. Any time a lender doesn't request school certification, the loan is higher-risk, which increases the interest rate substantially.
Consider contacting your school about getting a school-certified private loan that you can use to cover your summer courses and computer (not the car). Computers and classes are reasonable educational expenses and most schools will have no problem signing off on a loan to cover them. If your school can certify a loan for these things and that loan has a lower interest rate, I'd say "go for it." IF you need it later on, you could always apply for the direct-to-consumer Chase loan to cover the car (which I would simply refer to as "transportation"). This way, at least, you're getting SOME of your private loan at a better rate.
2007-03-28 05:19:46 · answer #1 · answered by FinAidGrrl 5 · 0⤊ 0⤋
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2016-10-23 21:23:29 · answer #2 · answered by Gladys 3 · 0⤊ 0⤋
They generally base grants on your income, and student loans are considered a debt. You should check with your financial aid office, but I'm almost positive that they assume that any loan you took out was used to pay for something during that semester, that you're not saving that money for something else.
As for the answer above mine, his or her friend might have been unable to get a loan because they would have exceeded what's called "cost of attendance." Schools will not certify a loan that is above that amount. If you're worried about it, definitely call the school to check on that. Just say, "Can you tell me how much I can get in loans for this semester?" and they should know.
2007-03-27 18:53:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Ask your financial aid adviser. I had a friend who had a grant from the state, yet was unable to get a loan from a bank since the University refused to provide the necessary data showing she was a full time student. The University statement was in effect, " you have a grant, you do not need a loan"
2007-03-27 18:12:08 · answer #4 · answered by Philatellic I.Y.C. 3 · 0⤊ 1⤋
I was on Yahoo Answers for something unrelated, but this topic was displayed on the sidebar...
2016-09-19 12:55:13 · answer #5 · answered by ? 4 · 0⤊ 0⤋
Looking for a good answer on this too
2016-07-28 10:22:59 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Funny, I was wondering the same thing myself
2016-08-23 22:14:49 · answer #7 · answered by cheryl 4 · 0⤊ 0⤋