If I apply for a student loan or a personal loan, does that affect my financial aid?

Question by simplykiss3s: If I apply for a student loan or a personal loan, does that affect my financial aid?
I’m thinking about getting a loan for personal issues, but was wondering if that will affect my financial aid award amount? Do I need to tell financial aid or it isn’t necessary?

Best answer:

Answer by financialaidguru
I’m assuming you are talking about private/alternative loans because any federal loans would go through your school.

More than likely your school will find out about it. Once that happens, the financial aid staff will check your financial need. If you don’t have any need, the school will not certify you for the loan. If you do have need, then chances are you will be certified for whatever need you have. There are still lenders out there that look for students who want to borrow money without the schools knowledge, but their rates and terms will not compare to a loan certified by the school.

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One comment

  1. Germx says:

    A personal loan is not something that is reported as income–not on your taxes or FAFSA. This should not affect your student loan amount and you don’t have any obligation to report it to your financial aid office as it is not income.

    I actually got a loan for my honeymoon while I was still in school and I didn’t report it to anyone! Honestly, what might be a better option if you can is take out as many student loans as you can and use the extra not needed for school to pay the other stuff. The interest rates on the student loans are capped (at least the ones issued by the government) and are usually better than the private ones.

    Hope this helps.

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