<p>My student has used any Stafford loans, etc. and now needs private loans. She likely needs cosigner, so what companies have the best fixed rates, longer terms, forgiveness, etc. and also the release of the parent/cosigner after so many payments. It is very hard to compare the various companies (Sallie, etc.). Prefer not using another PLUS loan, since that is direct obligation of the parent, etc. I also used some retirement money (although not able to borrower for retirement, no home equity, etc.) Single parent. Also wondering on the tax deduction of the interest.</p>
<p>Trying to get this in place this month, so time is of the essence. Thanks</p>
<p>Yes. there are several companies that eventual MAY release the cosigner, but they each have a time period. Some will release the cosigner after a yr. or so of payments on time, others it is 36 months. It also states that the STUDENT has to request the release vs. the parent/cosigner. </p>
<p>I find the private student loans are extremely difficult to compare since you can’t really compare them until you apply to each. Each has cut off scores for income (of student), FICO scores etc. </p>
<p>Its been 3-4 years since I used College Confidential (when my student was applying)… We used all the Stafford loans that were available so we need additional funding/loans. </p>
<p>Sallie Mae may have the shortest time to release the cosigner/parent. OThers are also offering discounts, etc. (PLUS LOAN had a 4% fee).</p>
<p>I am only looking/considering fixed rate loans so my student nows what the payment would be.</p>
<p>ETA…is this for undergrad at Dartmouth? If so, how did your student already use her maximum allotment of Direct Loans? Or is that not the case? How much money is needed? Is this to meet the student contribution? I thought Dartmouth met full need.</p>
<p>Browngirl…if you KNOW of such companies, perhaps you can list them here.</p>
<p>The key is the loans MAY be released…not they WILL be.</p>
<p>To be honest, if you cosign a loan with most lenders, you will be on the hook for it until it is either paid off, or the cosigner takes another loan in their name only and pays off the first loan.</p>
<p>Why did you start a second thread on this forum with the same query? </p>
<p>==Trying again. (Someone suggested moving this from another site).</p>
<p>Actually, some of the companies say they release the cosigner after 12, 36 etc months once repayment starts and they are on time. </p>
<p>I am a finance person and I find it hard to compare the whole private loan scenario. About the only way to compare them is start applying, but I don’t want them to pull scores and impact the scores based on inquiries. </p>
<p>Thumper- I also changed the subject line to see if more may review it, since the need is quite urgent. I would think many have used private loans and may be familiar with them.</p>
<p>Beware of loans that say that they will release the co-signer. Another mom here on CC used those for her D. then the loan was sold to another company and that feature was not honored. So, the mom-co-signer stays on the loan.</p>
<p>Since Dartmouth meets full need (and doesn’t it do that without loans??), and is very generous, it seems odd that these private loans are needed unless the parent has an unaffordable EFC. (or does your D have a NCP that isnt paying his share?)</p>
<p>Did you try Discover loans…or school loans thru your credit union?</p>
<p>Better yet…have you appealed to Dartmouth for MORE grants? Do you have an explanation that might warrant consideration for more money from them? Have you appealed? If your D has a NCP that isn’t paying, then appeal based on that. If they think your D may have to discontinue her education, they may be willing to fork up a few more thou.</p>
<p>Yes, single parent and no other parent. Like I said, the EFC is fairly high, I am just over the border of the no loans, but the EFC is still there. For years, I didn’t make much and still paying for expenses relating to high school years when I didn’t make as much. I don’t live in a mansion, but I have an old car with close to 145k miles, etc. This is the final year (and maybe next summer). I did put an explanation in the FA forms to tell them situation (maybe I will call them).</p>
<p>They had said to do the Plus loans, I did that already for this term plus the student loans max. Stafford of $6-7M for the year, but that is spread out. I also used some of my retirement for last year, but now realize I probably should have done a loan. I eventually want to buy a place one day, so I don’t want my credit impacted. Being in my 50’s I figure after this I will have to work for a long time to help fund this. (PS My retirement is not that massive compared to my age and there will be no inheritance) </p>
<p>I can see if I made this money for many years, they would assume that I would have more. I currently have to commute far, etc. </p>
<p>I was 1st to go to college, most of my family didn’t, so I always promised that if my student got into a great school we would make it happen. Who knew the cost of education would be so great. So not only will my student have a fairly high debt load, I will likely be in debt for a bit (plus lost money from my retirement).</p>
<p>While my student wants grad school, that will have to be funded some other way. I am sure that after a certain age-- like 25-26 they don’t require the parent info, etc. Not that I don’t want to help, but I don’t think I will be in the position to help.</p>
<p>Releases: I think Citizens has option to release after 36 mos. Sallie Mae is 12 (after on time payments). Reading the fine print, this is after you enter the repayment period and there no payment can be later than 15 days. </p>
<p>Interest Rates: Its very hard to compare rates, since they give broad ranges.</p>
<p>Discounts: Some offer multiple discounts, like you have an account at the bank, auto debit,etc. you get .25% reduction.</p>
<p>Quickness: Also not sure how quick Private Companies are. PLUS loan is quick, but run via simple information. The private loan companies probably vary.</p>
<p>When you took out retirement money was it subject to income tax and early withdrawal penalty? How much did you withdraw? You mentioned just being over a financial aid border; so I was thinking that maybe you could ask for your child’s aid to be re-evaluated ‘without’ the retirement withdrawal in your prior year AGI since you felt you had no other options in that regard and used the funds for her educational costs already.</p>
<p>Madison:
I took out maybe $6M-- may have paid a slight penalty, but not sure if the school used that in their calculation. I used my Roth since if it is open 5 yrs., you can pull out your initial contribution w/o a penalty (since I paid taxes on it when earned). Tax part wasn’t so bad, but it used retirement funds. </p>
<p>I probably would be better to have got a student loan w/long repayment plan and maybe help them repay (can’t borrow for retirement). </p>
<p>The total borrowing we are doing is well over the avg. that they report.<br>
Food budget is off since the college changed the program. And, if you want to be in greek life, there seems to be a fairly high price for that. (Of course, that can’t be borrowered)</p>
<p>PS Its been many years since using College Confidental. Found it very helpful when applying to college, so I thought I would take a stab at the finaid section.</p>
<p>Be careful with cosigned loans. There have been stories of trouble if either the student or cosigner dies. PLUS loans may be discharged if the student dies.</p>
<p><<<
This is the final year (and maybe next summer). I did put an explanation in the FA forms to tell them situation (maybe I will call them).
<<<</p>
<p>I would call them with a succinct but true assessment of the situation and the amount of debt y’all are taking on.</p>
<p>Wachovia (now Wells Fargo) offered to release the co-signer after two years of on-time payments. They sold the loan after 22 months, and in the process a payment sent to Wachovia wasn’t forwarded to the purchaser (payment sent before notice of the transfer arrived) and we were not able to be released from our daughter’s loans.</p>
<p>Four months later, Wells Fargo purchased those loans back. Almost looks suspicious, doesn’t it?</p>
<p>If you do cosign a loan, be sure to purchase life insurance for your child in the amount of the loans. When our daughter took her job, we made sure that we are named on her life insurance through her employer.</p>
<p>Based on what I find on websites, if the student doesn’t make over $12k-$15k a year and/or have a good score,they do need a cosigner. I just hate to try too many (too see the final interest rate), so that the inquiries don’t hurt my score. (My student doesn’t have great credit due to the limited history and other student loans that pop up on their credit profile).</p>
<p>I think you need to contact the school with a strong appeal for more aid. I think this “promise” you made to yourself to send your child to a great school if she got in should not have been a promise that entailed that she be saddled with a bunch of debt. </p>
<p>Don’t forget to consider the risk of disability, and insurance for that. Unfortunately, individual disability policies may be expensive due to adverse selection and disability fraud.</p>