Why Can T I Use A Personal Loan For Student Loans

Being used for secondary education expenses.

Why can t i use a personal loan for student loans. This means they aren t backed by any collateral such as a home or car. Even with a cosigner if you can get one an unsecured personal loan can be expensive in the long term. The interest rates will be lower and the loan term will be much shorter source.

Overall a personal loan is not drastically different from a student loan you are just using a new loan to pay of an existing student loan. How you can use your funds. Personal loans typically do not have any prepayment penalties and they affect your credit the same way a student loan would.

You ll then need to repay your personal loan based on your new loan terms. Here are three reasons why taking out student loans to pay for college is a bad idea and what you can do instead. Some lenders explicitly say you can t use their personal loans to pay for educational expenses or refinance student loans.

On the other hand student loans have just one purpose. Personal loans can be used for just about anything though some lenders restrict how you spend your loan funds. These differences mean you need to break down a few points to see how they compare.

One of the worst things about student loans is the. This makes personal loans a popular financing option for a range of purchases. You ll have to pay interest.

Personal loans are typically unsecured loans. A personal loan can actually be used to pay for almost anything. Discharging student loans in bankruptcy is a lot tougher to do and you have to be more or less destitute to ditch them.