I am trying to pay for Graduate school and I maxed out my federal student loans (including Direct Graduate PLUS). I found a lender for a private student loan, but my school denied certification of that private student loan. Can they do that? What are my options now, I needed those funds to cover off-campus living expenses?
This can be a tough situation to be in. But yes, you can reach your loan limits on both, federal and private student loans. And you would likely find out when your school denies to certify any additional student loans.
The process of awarding and certifying student loans (both federal and private) is managed by your college. Your college is only allowed to certify financial aid (including federal and private student loans) up to your program’s cost of attendance (set by your school) for your academic year. If you’ve already received loans and other aid up to your cost of attendance, then you do need to find another way to pay for your college costs.
Your options may be limited in this situation.
When you graduate you will be required to repay the loans you borrowed, so loan limits are actually a protection. It is worth it to have the discussion with your financial aid office to see if there is any way they can do to help you this academic year.
Best of luck!
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