Can I Get a Student Loan if I Already Have One from a Previous Degree?

Many students find themselves in a situation where they have completed a previous degree and now want to further their education. It is indeed possible to get a student loan under these circumstances, but the eligibility and process may vary depending on several factors.

General Eligibility and Circumstances

While it is possible to secure additional student loans even if you have an outstanding balance from a previous degree, some lenders and financial institutions may be hesitant, especially private lenders. The decision will largely depend on your repayment capacity, your current loan amounts, and the lender’s policies.

Private Lenders and Additional Loans

Private lenders may be more cautious about issuing additional student loans to individuals who already have outstanding balances. This is because the risk of default increases with more debt. If you attempt to get another private loan, you may face denials. In such cases, a practical alternative is to pay for each course individually, as described in the example of the author.

Example of Individual Course Payments

The author's experience highlights an alternative approach to further education: paying for each graduate course individually. This method can help you manage your finances more effectively and avoid additional debt. Each course typically costs around $1000, which can be a significant amount, but it offers more flexibility and control over your financial situation.

Federal Student Loans and Borrowing Caps

Federal direct subsidized and unsubsidized student loans have lifetime borrowing caps, which means you can only use these loan types for one bachelor's degree. However, if you have not reached these borrowing limits, you can still use the remainder of the loan for graduate or professional school. Additionally, there are Graduate PLUS loans available to help cover the costs of your higher education.

Educational Deferral and Continued Enrollment

While you are enrolled at least half-time, you may qualify for educational deferment. This means your payments for your existing loans can be temporarily suspended, allowing you to focus on your studies without the financial pressure. It is best to contact the Department of Education to confirm your eligibility for educational deferment.

Debt Management and Financial Advice

It's important to consider your financial situation and repayment capacity before seeking additional loans. If you have not paid off the debt from your previous degree, it's advisable to explore all options and seek advice from financial experts or educational institutions. Some institutions may offer financing or deferral options to help you manage your existing debt while pursuing further education.

Consulting the Institution for Further Loans

Many institutions that originally issued your student loans may be willing to extend additional loans for your higher studies. They may also be willing to postpone your repayment until you have completed your current educational program. However, this option depends on the specific policies of the lending institution, so it is crucial to consult them directly.

In conclusion, while obtaining a student loan while having an existing one can be challenging, it is possible with the right circumstances and conditions. Always consult with lenders and educational institutions to explore your options and manage your financial obligations effectively.