A few days ago

Loans for those that have exhausted them?

I have a close friend who currently has capped out their loan limit from the federal government. What makes matters even worse is that they were overpaid $2200 by the government, which must be paid for her to even be considered for other loans. Currently she is at around $46,000 and she still has three semesters left. Would it be better for her to go ahead and pay the $2200 now and take her chances on being able to get some other type of supplemental loan or should she try an alternative route of loan? If so, what? Also, it may be important to add that she is not currently working.

Top 2 Answers
A few days ago

Favorite Answer

I just slap my forehead when I read some of these questions. Here is a person who has no job, owes $tens of thousands of dollars, and wants to borrow more.

Would you personally lend money to this person? If you found out that your bank was lending money to people in this condition, would you take your money out of the bank and put it somewhere safer?

She can probably find someone who will loan her money. But because her financial situation is terrible, she is going to have to pay a way high interest rate. That is fair, because this person is a very bad risk.

What she really needs to do is get a job, make enough to pay back the $2200 that she owes right now, and then finish school without any more loans. Maybe that means attending a local state school or taking only as many courses each term as she can pay for. But borrowing and borrowing and running up these huge debts is crazy! Didn’t anyone explain that these debts were going to have to be paid back? I feel very sorry for this person because she is seriously messed up financially and it is going to take years to straighten things out.

I am a very strong proponent of elite schools. People should go to the best school they can afford! But the key word is “afford!”


A few days ago
Maybe she should get a job while she’s going to school. Most students do that.