<p>Hi, All: Our son will be attending college next fall. We are fortunate in that they gave him a nice financial aid package, but there is still a gap. We applied for a SallieMae but were rejected with me (his mom) as a cosigner. We've had some bad credit, don't have a cosigner, our income in good, and are wondering if anyone has had luck with any loans? We will probably try the Parent PLUS but if we are rejected (which we probably will be) our son will only get another $4000, which won't cover the gap. Thanks for any advice!</p>
<p>How much is the gap, and what are the other options if it can’t be bridged?</p>
<p>You’re not going to find a bank that will just hand you money on a promise, not today. Besides, if your son is already borrowing max Staffords as part of his package, borrowing much more than another $4,000 per year is going to end being a pretty heavy debt burden.</p>
<p>You need to talk to the financial aid office. But with bad credit , no assets to attach, nope. You may still get the PLUS, as they are generous, and they may let you be a cosigner–they jack up the terms and interest rates of those loans depending on your credit score, but if you don’t make those cuts, you have to have a family member or a friend with good credit to sign for you. That means someone who is wiling to put their credit on the line and be liable for those loans. Maybe you can do a private guarantee your house or car or other valuables as collateral and work out something with them. I offered this to one of my DH’s cousins who is in the same situation, and they declined but someone might do this if you set up the legal paperwork. Otherwise who is going to trust you with a bad credit record? They need some collateral. </p>
<p>But apply first. PLUS does give a huge leeway. Have each parent try individually. The decision is private and quick.</p>