Question about FA Stafford Loan / Private Loan

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Question about FA Stafford Loan / Private Loan

Postby KennyC1139 » Mon Oct 29, 2012 6:01 pm

Hi , I currently have a private student loan from wells fargo for $8000, I was not able to apply for the stafford loan this quarter. But I can next quarter. As everyone knows the private loans have really high interest rates and compound interest DURING school. I end up having to pay 3x of what I borrowed. I was wondering if next quarter I get the stafford FA loan. Can I use that money to pay off my private loan?
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Re: Question about FA Stafford Loan / Private Loan

Postby Financial Aid Guru » Tue Oct 30, 2012 2:14 pm

If you are eligible for the Stafford loan, you can use it to cover educational expenses. Assuming you use the Stafford loan to pay off a private loan - you won't have those funds to cover costs for the next semester. If you have those future costs covered - then you can use extra funds to pay down other educational expenses.

The short answer is yes.
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Re: Question about FA Stafford Loan / Private Loan

Postby KennyC1139 » Tue Oct 30, 2012 3:14 pm

What if financial aid is able to cover my expenses but I still want to pay off the private loan with the gov loan. An I still able to take out thy loan to pay off my private even if I don't need much of it to pay for expenses on the next quarter. Right now I have an 8k loan from wells Fargo to pay for this quarter because I don't have any FA right now so I guess what I'm asking is can I still borrow 8k from stafford loan next quarter even tho I don't really need it for that quarter, I just need it to pay off my private loan in full because their rates/plan is really high
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