A few days ago
What does Legal Limit Mean?
I keep hearing my finiacial advisor mention this word, and i asked her what it meant she stated the government only allows me to borrow so much so i dont get in to debt. So what i dont understand is how one of my friend’s borrowed 40,000 from a private loan company and then got a loan from a bank for 15,000 for a car and school expenses. If 40,000 is the legal limit then how did that happen. Please help really, really, Confuses right now. Will i get arrested for borrowing to much I mean wow is it that serious when it comes to loans or is it only that for federal Loans?
Top 2 Answers
A few days ago
Favorite Answer
Federal School Loans are 100% seperate from private loans (from private lenders, like SalleyMae).
Depending on your financial needs (how much school costs, how much you earn/your parents earn, what year you are in) the government will lend you $xx for your federal school loans.
There is a limit to how much you can borrow from the federal government for your school loans.
If you still need more money, you can apply for a loan thru a private lender, though the interest rates will probably be much higher.
1
A few days ago
don’t over extend yourself when your payment should not exceed 40% of monthly income. compare with all loan institutions . offer a down payment on a major purchase , it give s a better rate.
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