What can you use a private student loan for?
If you're like many college students, you may have taken out private student loans to help pay for your education. These loans are one way to bridge the gap between your college costs and financing you receive from other sources, such as federal student loans and scholarships.
You can use private student loans for a variety of expenses, but not for everything. To determine how much to borrow with private student loans, it's important to know which expenses qualify.
Start exploring your private student loan options here to find out.
What can you use a private student loan for?
Attending college can be costly. Here are the expenses you can pay for using your private student loan funds.
Tuition and fees
The most common use for private student loans is for tuition and fees. Competition for scholarships and grants is fierce, and federal student loans are capped at anywhere from $5,500 to $20,500 per, depending on your circumstances. Given the average tuition is tens of thousands of dollars per year, many students face a shortfall private loans can help cover.
Housing
If you're living on campus, private student loans can help with the cost of room and board. This includes the cost of dorm rooms, meal plans and other related expenses. Many private lenders also allow you to use your funds on expenses such as rent, utilities and groceries if you're living off-campus.
Find out how much you can borrow here.
Books and supplies
Textbooks can be expensive, especially for certain subjects or specialized classes. Private student loans can help cover the cost of textbooks and other classroom materials, which can easily add up to a thousand dollars or more per year.
Transportation
Getting to and from school and around campus often requires transportation. If you need to purchase a car or a bus pass, you can use your private student loan to pay for it. You can also use the funds for transportation-related costs, such as gas, car maintenance and parking passes.
Personal expenses
Lastly, a private student loan can be used to cover reasonable personal expenses incurred during your time at college. This includes things like a new laptop, toiletries and medication. While you should take care to use your loan responsibly and only on essentials, it can help you maintain a comfortable college experience so you can focus on your studies and classwork.
The bottom line
You can use your private student loans for everything from tuition to housing to personal expenses. However, it's important to keep in mind these loans come with interest rates, which means you'll ultimately be paying more money in the long run.
Therefore, it's important to use your loan wisely and only borrow what you truly need. It's also important to shop around and compare different lenders' rates and terms. With proper planning and budgeting, a private student loan can be a helpful tool in achieving your educational goals.
