<p>I was just wondering if some people could help me out with my current situation. </p>
<p>I graduated high school in 2009 and was supposed to go to college in the fall, but my finances didn't work out, and I ended up working for a year and making enough money to move out on my own in January of 2010.</p>
<p>Even though I moved out, the school is still counting me as a dependent, and looking at my parents financial information of FAFSA. As of January 2010, both of my parents were laid off and are now unemployed. On top of that, a few days ago, Congress denied the bill for the extension of benefits for people on unemployment, and as of August 1st, 2010, both of my parents will have NO INCOME.</p>
<p>We filed a form with my college's financial aid office today, so we will hear back from them soon. But I was just wondering if people had any experience with getting a pretty big loan for a state school with bad credit. I personally have only one credit card, and it's maxed out around at $1000, and both my parents have pretty bad credit (not to mention they refused to co-sign anyway, and still refuse to do so).</p>
<p>So what should I do? I was going to try and plead my case to as many loan officers as possible, up until i researched that the Federal Family Education Loan program that allowed banks to host private loans using their own (non-Federally obtained) monies, is now terminated as of July 1st, 2010. </p>
<p>Unless you have great SAT/ACT scores and grades you need to look at starting in your local community college. That is the least expensive way to go. You are only eligible for about $5K in federal loans as a freshman. You might get some Pell grant $ and if your parents are denied a PLUS loan your federal loan amount increases. Start at the Financial Aid office at your local community college. They can give you specific help.</p>
<p>OP, community college for the first two years is the way to go. The last thing you need is more debt. Try to minimize the amount of loans at all costs. You could put yourself in real financial hardship for 10 years. </p>
<p>Student loans cannot be discharged by bankruptcy so if you get into a situation like your parents the loans are still there.</p>
<p>So you were saving up for college but decided to move out on your own and went into debt? That probably wasn’t the wisest choice from a purely financial standpoint, but water under the bridge at this point. Every school, and the government, will continue to consider you a dependent student for FA until you meet one of the criteria for independent students (age 24, military service, etc.) Also, the FFEL program was for federally guaranteed student loans (aka Staffords) - some schools used it instead of direct lending, but now all schools will be direct lenders. The qualifications and limits for Stafford loans have not changed. The limits are still $5500 for freshmen, $6500 sophomores, and $7500 for juniors and seniors.</p>
<p>If your parents have adverse credit, they can apply for a Parent Plus loan and if they’re denied (which seems likely), you can request an additional $4,000 in unsubsidized Stafford student loans from your school. Be very careful with the amount of debt you’re racking up though…it is not easy to pay it back, it will be with you for a long time, and is not dischargeable through bankruptcy. You may want to play with the loan calculators at finaid.org and stay on top of what your monthly payments will be. Also, if you can afford to, it’s a very good idea to pay the interest on your unsub loans every month/quarter while you’re in school.</p>
<p>Without posting your EFC and current award package, it’s difficult to know what effect an appeal might have - for example, if you’re already Pell eligible, it’s probably not going to result in much additional funding from the government but if you were close to being eligible, but over the max EFC, it could bring substantially more aid.</p>
<p>It doesn’t necessarily have to be a community college. My sister attends a 4-year regional state university and her tuition and fees are less than $3,000 a year. Because she commutes from home, that’s all she pays for. Aside from community colleges, I’d also look at the public university system in your state and see how much some of the cheaper 4-year campuses cost. Even in California, one of the more expensive states, the Cal States cost around $5,000 a year for in-state students.</p>
<p>Why <em>did</em> you move out on your own, anyway? It might be a wiser choice for you to live with your parents while you finish school. That way you can focus all of your finances on completing school instead of worrying about paying your on rent.</p>
<p>I am so sorry that you have so much to deal with. I am worried that a bank or other lender will swoop in and offer to loan you a gazillion dollars and that you will be so relieved that you sign up . . . only to discover later that you have signed yourself into a lifetime of debt slavery. It happens. Please borrow as little as possible to get by. </p>
<p>Make sure you are talking to the college BEFORE the banksters. With zero income, you surely should qualify for a Pell grant and maybe more – enough to get started at any rate. </p>
<p>Working and taking one, two or three classes at a time is a horrible, drawn out way to get a college degree – but people do it all the time. Military/Coast Guard service is another path. You might also check out Americorps. </p>
<p>As much as it pains you, your parents are being smart not to co-sign a loan. Their own plates are full and a clear “no” keeps the situation from deterioating further for them. </p>
<p>I don’t think you are going to get the “Dream” college experience where you live in an ivy covered dorm and have long, intellectual lunches with professors and peers. You are going to be working food service and hustling pizza and . . . whatever else. But please know that many, many people go this path.</p>
<p>I feel you, Jprovo. I went through the same problem when I turned 18. My parents were out of the equation because they were in a bad financial situation. I had to go to a community college, but I didn’t like any of the ones near my house. I ended up having to go to one that was 20 miles away, so I had to buy a used car. Long story short, it took me 3 years in JC before I transfered to a 4-year university. By then, my parents’ situation had improved, and -thankfully- they were able to help me out with tuition, which was only 2 years. I suggest you do something similar. I know it’s a huge disappointment not to jump into a 4-year like the rest of your colleagues, but sometimes you just have to work harder and take the more difficult road. Your future self will thank you.</p>