Can Private Loans Be Deferred in Grad School and Used to Pay Off Undergrad Debt?

[Flat]

It looks like for the next school year I will need ot take out a private loan to cover living expenses. My first year I went to a community college and was able to afford (and save a bit) tuition and living expenses by working part time and in the summer. This previous year I depleted my saving account by paying for schooling.

It looks like my summer job will only cover the difference between tuition (and cost of books) after federal loans.

So my question is, are private loans still deferable once you enter grad school? I know that you can take out some federal loans to help pay for grad school. Can you use these to pay off the high interest private loans from undergrad, while living off the stipend?

Thanks for any and all input.

 

[mooktank]

Make sure it's a private school loan. That way you will be able to defer payment. I got one during my undergrad from JP Morgan/Chase/American Education Services. Interest is not that low but it's sure lower than a credit card or normal personal loan.

 

[Mene]

I understand the importance of careful financial planning when it comes to pursuing higher education. It sounds like you have been able to manage your expenses well so far, but now you are facing the need for a private loan to cover living expenses. Private loans can offer additional funding options, but it is important to fully understand the terms and implications before taking one out.

To answer your question, private loans can be deferred while in graduate school, but it ultimately depends on the specific loan terms. Some private loans may have a grace period during which payments are deferred, while others may require immediate repayment. It is important to carefully review the terms of any private loan before taking it out to ensure that it aligns with your financial goals.

Additionally, it is possible to use federal loans to pay off high interest private loans from your undergraduate education. However, it is important to consider the potential impact on your overall financial situation. Federal loans typically have lower interest rates and more flexible repayment options, so it may be advantageous to prioritize paying off private loans with higher interest rates first.

I also want to mention that there are other options available for funding graduate school, such as scholarships, grants, and assistantships. I encourage you to explore these options before taking on additional debt. It may also be helpful to speak with a financial advisor or counselor for personalized advice on managing your finances during graduate school.

I wish you the best in your academic pursuits and hope that you are able to find a financial plan that works best for you.