Private Student Loans: Fill & Download for Free

How very bizarre.I suppose I must have been dreaming when I took a private student loan in 2013.It is possible, I will admit, that Rep. Waters and I are delusional. But it is at least just as possible that the people assuming that banks are out of the student loan business have been duped by some conservative American “news” source.

How much student loans do I need?Instead of asking “How much student loans can I get?” consider how much you really need.The answer to this question is going to be different for each individual. Depending on your school’s tuition, room and board, books, and living costs, your college expenses could differ wildly from someone else’s. CollegeBoard’s tool to calculate how much college will cost. Student loans aren’t limitless. The maximum amount you can borrow depends on factors including whether they’re federal or private loans and your year in school. Undergraduates can borrow up to $12,500 annually and $57,500 total in federal student loans. Graduate students can borrow up to $20,500 annually and $138,500 total. But just because you can borrow that much doesn’t mean you should. To keep higher education affordable, calculate how much you should borrow for college based on your expected future earnings and aim to keep your student borrowing below that amount.You can also borrow less if you get grants, scholarships, and other student aid that doesn’t have to be repaid. The FAFSA4Caster tool can help you estimate how much federal aid you’re likely to receive, and how much you’ll have to finance with loans.How Much Money You Can BorrowThere are two types of student loans available—federal and private. It is best to maximize the amount of money borrowed through federal student loans first before turning to private lenders. Current federal student loan lending limits are illustrated in the graph below, with a description to follow:Federal student loan limitsThe first type of loan that students should consider is federal student loans, which are offered through and guaranteed through the Direct Loan Program. This program offers four types of Direct Loans, and caps how much you can borrow with each under the following rules:Annual limits: The maximum amount of that the borrower can take out in an academic year.Aggregate limits: The maximum cumulative amount that a borrower can borrow in student loans.Cost of attendance: In addition to annual and aggregate limits, the federal government also limits loans by your costs. It will not allow borrowers to take out more student loans than their college program costs.How much student loans you can get, specifically, will vary by your student status. For example, the Direct Loan program lends less to students who are dependents (per FAFSA guidelines), or who are in their first or second year of college. For independent students and upperclassman, the borrowing limits are higher.Here are the federal student loan limits for different types of Direct Loans.Type of federal student loanWho can get this loan?Annual loan limitAggregate limitDirect Subsidized LoansUndergrads with demonstrated financial need$3,500 for freshmen, up to $5,500 for upperclassmen$23,000Direct Unsubsidized Loans*Undergrads$5,500 for dependent freshmen, up to $12,500 for independent upperclassmen$57,500Direct Unsubsidized Loans* (graduate students)Graduate and professional students$20,500$138,500PLUS LoansGraduate and professional students, and parents of undergraduatesCost of attendance (after all other student aid is applied)NoneTo access these federal student loans, you’ll need to file a FAFSA. The colleges you’ve applied to use your FAFSA information to evaluate your need and eligibility for federal student aid, including loans. Next, these colleges will send you financial aid award letters outlining what kinds of aid you can get.So as you want to know how much student loans you can get, pay attention to this letter. It will list the types and amounts of federal student loans you’re being offered.Private student loan limitsPrivate student loans are offered by banks and lenders directly to students and their parents. They aren’t part of the federal government’s programs, so they won’t have the same rules for how much student loans you can get.This can actually be good news for students who have hit their federal student loan limits and still have costs to cover. For instance, if you go to a more expensive university and pay a higher tuition, those federal student loans won’t go as far. In these cases, private student loans can help to cover any leftover costs.What you can borrow with private student loans will also vary by lender, as each bank will have its own lending rules. Here’s what private lenders will look at when deciding on your student loan amount:Lenders’ limits or guidelines: Each bank or lender will have its own limits on annual borrowing, while others may just have a certain maximum yearly amount you can borrow. Citizens Bank’s private student loans, for example, are limited at $100,000 for undergraduates.Credit qualifications: Lenders might limit student loan amounts based on your qualifications for a loan, too. You’ll need good credit to get a private student loan, for example. If you do not have any credit history you’ll likely need a parent or trusted adult cosign the loan for you.Education and employment: Private lenders might also limit loan amounts to what they determine will be affordable. To figure this out, they might look at details such as the type of degree you’re earning, and your cosigner’s income.Cost of attendance: Lastly, most private lenders will also consider your cost of attendance when deciding how much student loans you can get from them. Many will offer financing of up to 100% of your cost of attendance, but few private lenders will let you borrow more than what your program costs.

An Iowa father confronted Elizabeth Warren on her plan to forgive student loan debt…Father: I just want to ask one question. My daughter’s getting out of school, I saved all my money, she doesn’t have any student loans…Warren: God Bless you.Father: am I going to get my money back?Warren: Of course not.Father: So you’re gonna pay for people who didn’t save any money, and those of us who did the right thing get screwed?Warren: No it’s not like that…Father: Of course it is, when my buddy had fun, got a car, went on vacation, I saved my money. He made more than I did. I worked a double shift. I worked extra. So you’re laughing at it. That’s exactly what you’re doing. We did the right thing and we get screwed. {walks off}Senator Warren's plan calls for eliminating student loan debt of up to $50,000 for households making under $100,000 annually, which would apply to around 95% of borrowers.She said she would finance her 2 trillion dollar proposal with a wealth tax.Asked about the moment on "CBS This Morning," Warren responded…"Look, we build a future going forward by making it better… By that same logic what would we have done? Not start social security because we didn't start it last month for you?"She then went on to say…"Back when I was growing up, my family didn't have any money to send me to college, but there was a $50, a semester opportunity out there… So kids didn't have to go into debt a part time job would get you through that world is gone, and we need to open it back up again."For one, the only time I hear Democratic politicians say “God bless you” is when they want to justify taking money from the middle class to give to the poor. It’s like me stealing your car and saying, “Thank you.”Secondly, she argues the middle class won’t have to pay for it, but there’s a reason why 9 of the 12 European nations that had implemented a wealth tax quickly did away with it and that’s because unless you also increase import tariffs then you are basically encouraging the wealthy to move their money and businesses overseas. For example, France's wealth tax led to an exodus of roughly 42,000 millionaires until Macron ended the tax.Thirdly, a president must prioritize!In the last 70 years a president has only been able to pass a few major pieces of legislation over the course of their presidency. Does Elizabeth Warren really want to use a large chunk of her political capital on such a divisive solution?And do Americans really want to pay 2 trillion dollars for forgiving student loans when that money could be better spent elsewhere, such as on our infrastructure or paying off our own national debt, which cannot be so easily forgiven and which every year faces evermore interest.Lastly, her personal anecdote is revealing because in America you used to be able to pay far less for university. College got more expensive when the government got more involved.This is because as soon as government made it easier for you to borrow more money then it made it easier for the universities to charge more money.Why not go back to the way things were?And then for those of you who got screwed by our current system I empathize with you.You were scammed and it’s just plain unfair for you to have to pay large chunks of your income for decades on end. It’s also bad for the American economy when so much money is tied up in paying off loans instead of being spent or invested.So we should all agree that something needs to be done and here are some sensible solutions…The government should pay off $10,000 worth of debt for all students no matter what you or your parents make. That’s a more modest and fair amount.The Government should work with banks to restructure loans in order to reduce student debt by an additional 5% - 25%.We should also extend loans further into the future so each month you can pay less money out of pocket. Overtime, rising inflation will also help you pay less in real dollars.We should massively reduce interest rates and possibly eliminate interest altogether.And then we should tie monthly payment size to a percent of your income instead of demanding a set amount.These solutions are common sense. And since they’re less partisan, they’re much more likely to get done.We can all walk away from this compromise feeling like its fair instead of feeling shafted for doing the right thing.But of course putting sensibility aside, promising “free” always buys more votes.