Student Loan Caps?

[Ottovon]

---

Members don't see this ad.

Is there a cap on private loans? I know there is a cap on federal loans but my family is giving me huge **** on me (two years after I entered college...how punctual of them) about taking out private loans. My mom thinks I'll reach my 'cap' and won't have enough to take out for med schools.

I know stafford and other federal loans have caps, but what about private loans? I don't think there is, but I just want to make sure.

My family is crazy......


Thanks.

 

[noshie]

Is there a cap on private loans? I know there is a cap on federal loans but my family is giving me huge **** on me (two years after I entered college...how punctual of them) about taking out private loans. My mom thinks I'll reach my 'cap' and won't have enough to take out for med schools.

I know stafford and other federal loans have caps, but what about private loans? I don't think there is, but I just want to make sure.

My family is crazy......


Thanks.

There are really no caps on private loans... But it's all up to the lender on whether or not to give you tons of debt if they think you are at a point where you would be a risk because you have so much already. You should be fine though since you will be in med school, you're guaranteed to get a job and make money afterward. The bad thing about private loans is the crazy high interest rate though... Ugh.

The one thing I would worry about is if the place you are getting the private loan from is going to let you defer payments until you graduate or get out of residency. But since you may be getting private student loans this may be implied. I have never tried for one so this is something I am not sure of.

 

[gravitywave]

there is no formal 'cap' like there is for government loans, but private loans are credit-based, so they will lend you money up until the point at which you no longer qualify - at which point you will be cut off. that point is to some extent based on your personal financial situation. that said, few people get cut off as student doctors at LCME programs are some of the best credit risks out there. you should also realize that nearly everyone takes GradPlus loans before they wade into the private market, as the terms are generally better.

FYI, the stafford loan cap is generally >$40k/yr and $224k cumulative for medical students.

 

[TropicalKitty]

Ditto on the no cap, per se.

The interest is the tricky thing. Unlike the gov't loans/consolidated loans, the private ones end up with variable interest (in my experience). The nice thing is, though, they offer some incentives. You can get rate deductions for paying on time, paying electronically, et cetera, which helps. And the rate can go lower (like mine did b/c of the economy tanking), but you don't want to count on that!

Also, from what I remember in grad school, there are different loan types too. For example, the type of loan for taking out the difference between the cost of living and gov't loan vs just getting extra money on top of COL estimate. The loan I got for the difference allowed me to defer payment until I graduated. If you are getting $ on top of COL, things get even less favorable for you.

As with anything, make sure you read up before you sign.

 

[thitchcock]

Is there a cap on subsidized and unsub. federal loans? If so what is it for med students?