How to Get a Student Loan for Classes Already Taken

Paying for college can be expensive. Unfortunately, if you have already paid for classes out of your own pocket, you are not eligible for a student loan. Student loans are meant to pay for classes that you have not yet taken. You may, however, be eligible for a consolidation loan if you have federally guaranteed student loans to pay back. If you took out federally backed student loans, such as an unsubsidized or subsidized Stafford loans or a Health Professions Student Loan -- private loans are not eligible -- you may be eligible to take out a student consolidation loan. A consolidation loan puts all of your eligible students loans into a new loan with one monthly payment. You will sign a new promissory note, and your old student loan debts will show up on your credit report as having a zero balance. You will get a new repayment schedule and interest rate as well.

Instructions

1. Make at least three in-full payments on your current student loans if you have defaulted on them. Another option is to agree to repay your loans on an income-sensitive repayment plan. Contact your lender if you have a Perkins loan or a Health Professions loan to determine what satisfactory repayment means and fulfill its requirements before you can be eligible for a consolidation loan.

2. Approach a student loan lender that offers federal consolidation loans about consolidating your student loans. Make an appointment to meet with a lender to discuss your options. You may also be able to initiate the consolidation loan process through a lender's website. Many banks offer federal consolidation loans.

3. Bring all of your student loan paperwork with you to the meeting -- such as promissory notes; letters of default, deferment or forbearance; and statements. You may have to send in these types of documents electronically if you plan to get a consolidation loan over the Internet. Although the consolidation loan holder will likely inform your other lenders that you have a new consolidation loan, notify your other lenders yourself of your actions to prevent any miscommunication.

Tips & Warnings

• Schools typically request payment or a deposit for classes before you begin them. You may have pay the rest of them throughout the rest of the semester. If you have not yet finished your classes and are in the middle of the year, you may be eligible for a student loan. Many schools also offer loans themselves for students facing extraordinary hardship that may help you pay for some of your school-related expenses.

• Consolidation loans may also have lower payments than your previous monthly student loan payment amounts. The repayment period may be as long as 30 years as well. You can get a consolidation loan even if you only have one federal student loan. If you have variable interest rates on your student loan, a consolidation provides a fixed interest rate that cannot exceed 8.25 percent.

• Consolidation may not be for you if you are not willing to increase the total amount of the loan over time. A consolidation loan may decrease your monthly payments but increase the length of time you have to repay your loan. You may pay more in interest over time. If your student loans are almost paid off, the effort may not be worth it to extend your payments.

References

• Federal Direct Consolidation Loans Information Center: What Loans Can I Consolidate?
• ED.gov: Loan Consolidation
• Federal Direct Consolidation Loans Information Center: Should I Consolidate?
• Federal Direct Consolidation Loans Information Center: How Do I Benefit?
• Federal Direct Consolidation Loans Information Center: Am I Eligible?