Can I Get a Loan If I Already Have One Out?
Loans are useful financial tools that give you the ability to afford your education throughout your entire college life. Although these amounts will typically shrink over time as you continue to build your savings and your income, you will most likely need to continue taking them out in order to pay for the difference in your tuition and to help you afford other school materials while you pay out of pocket for your life essentials.
While some people may be able to afford to pay more out of pocket or may have the assistance of their family, others may rely heavily on loans and additional sources of funding to pay for their college tuition. One of the biggest questions that you may have regarding student loans are, can I get a loan if I already have one out? This is an extremely common question and this article will aim to address the question and help you better understand the loan process.
Loans designed specifically for educational purposes
The good news for federal and private student loans specifically geared towards educational purposes is that you can borrow multiple loans. In fact, many options exist that allow you to take out multiple loans so that you can cover the overall cost of attending your college. Let’s imagine that you are trying to go back to college and find some accredited liberal arts degree programs. If you are seeking out federal help, you have the option of taking out Subsidized Stafford Loans (interest is paid while in school) or Unsubsidized Stafford Loans (interest accrues while you are in school).
You may also have the option of special loans designed specifically for parents or for other needs that aren’t addressed by typical loans. Private loans are an option as well if your current loan options do not cover most of your expenses. However, these types of loans often come with higher interest rates and may require you to pay them back while you are attending college. While you may be able to take out multiple loans for your education, there are often limits as to how much you can take out depending on how much you are receiving annually, how much you earn, and how much you will acquire over your college career.
Personal loans designed for all needs
There are some cases in which you may not have enough money to cover your tuition or you may be struggling to pay for both your living expenses and your school expenses. In situations such as these, you may be thinking about turning to personal loans to help you afford everything and you may find yourself in a situation in which you will need to take out multiple loans. Although you can certainly take out multiple personal loans for whatever purpose, you may not necessarily be able to. Many lenders require you to pay most of your initial loan before you are able to take out a second one and even then, it truly depends on your overall credit history as well as your current financial situation. If a lender sees that you are a potential risk and may not be able to afford to pay back both loans, they may reject you. If you are looking to take out personal loans and you have the ability to do so, you may want to reach out to resources such as a credit union in Harahan, LA to minimize your risk.
For those who intend on going to college and need financial assistance to do so, it is possible to take out multiple loans to help pay for the costs of university. However, it is important to approach each loan with caution and to do your research so that you can create a loan plan that works out best for you.