<p>Let's say I borrow $15,000 this year from a bank, but only use $13,000. Do I get to use that remaining $2,000 for the next year? Will interest have been accrued for that unspent $2,000, or just the $13,000 that have been spent?</p>
<p>Also, what happens if I borrowed too little and ran out of money during the school year? Do I have to go through the loan process again?</p>
<p>Bumperoooni</p>
<p>On private loans, interest accrues on the entire amount from the day you borrow whether you spend it or not. If you carefully budget and do not spend as much as you anticipated, you will of course still have that money and can use it for expenses the following year. If you think you might “run out of money” before the year is out, your best bet is to work out a careful budget NOW for your expenses and stick to it week-by-week.</p>
<p>Alamemom is right. If your loan is truly private and not tied to the cost of attendance at your college, it is possible that you can get more than you need. Even if you get a loan that is tied to COA, it is possible that you do not use all of the funds. Yes, you can keep the rest of the money. You are paying interest on every bit of it. Sometimes you cannot even give it back, if there are prepayment penalties in your loan agreement. As for needing more money, yes, you would have to take out a whole new loan.</p>