Desperate for private loan but no cosigner/ Precautionary tale about hospital mistake

Paying for College
1

<p>Hi Parents!
I’m a 22 year old college student and I have a financial aid related question/situation and need advice with interpreting my credit report for student loan shopping. I need to go student loan shopping and am extremely confused about how to shop for student loans in a way that won’t affect my credit score. My parent cannot cosign because she had her credit report destroyed.</p>

<p>My parent will not be able to co sign my loans at all. Last year, my mother’s biopsy bills were never sent to the correct bluecross (they were sent to bluecross of CA when in fact we have empire bluecross of ny but live in CA) and since my mother never told us about her biopsy tests (she’s paranoid we would think she had cancer since there’s a high cancer history in her family) and can’t speak English that well, her credit became destroyed by the time I found out about it and sorted it out.( She even got her credit cards closed and now her max is $150/month, but that’s another story)</p>

<p>Before, she had an 800+ credit. Now, I will have to use my own 3 year old credit history to apply for student loans and I will not have a cosigner. (I pay off all my credit cards, have very low balance to credit ratio, and have never missed a payment and pay them off in full every single time—no impulse shopping for me lol! </p>

<p>Since I am only eligible for an unsubsidized Stafford loan at around $7500, I will need to get a private student loan to afford cost of living/tuition. </p>

<p>I’m not understanding how the Loan Officer at Chase Bank/Sally Mae/Any student loan officer will interepret my scores….: (</p>

<p>1) I just ordered a credit report and saw that I had 722 for Transunion and Experian, but onlyh 702 for Equifax. Apparently my credit card from chase and bank of America were never reported to Equifax because my credit report history states that that information is “unknown” I’m so confused! What should I do to get that reported to Equifax?</p>

<p>2) If the Loan officer sees that Equifax is only 702, will that jeopardize my interest rates for a private student loan, even though the others are 722?</p>

<p>3) I paid off a debt for a hopstial visit that got sent to colletion and that showed up in my credit report. How long will it take for it to go away? Should I wait for it to go away before I try to get a private student loan for this fall semester 2010?</p>

<p>4) I need to apply for a third credit card as well as a student loan ready for fall 2010 semester which starts in early September. How should I stagger them such that one inquiry from one does not lower my credit and hurt my chances for a credit card/student loan? I applied for a third credit card in April and it showed as an inquiry only for Equifax. Since I had some debts, it was not approved. Equifax’s scores is now 702 whereas other agencie’s are 722. </p>

<p>5) I need $5,000 for fall semester 2010, but I will have a relative subsidize some of my education come spring semester. I see that most Private student loans are only disbursed per semester/quarter. Will I have to take out a loan for twice the amount I need then?</p>

<p>6) How high will my interest be? I will graduate in 2012 with an engineering major that’s projected to earn $60,000+ and I can always do other work on the side so I feel that maybe I can take on some student loans. I only need that $5,000 private student loan for fall 2010 only…. Where should I look for that loan????? I’d take out a bank loan, but I can’t pay it off for another two years!! I would have $15,000 student loans when I graduate.</p>

<p>Thanks so much!!!!!</p>

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<p>To secure a loan in your OWN name with no cosigner you need one of two things…or a combination of them. You either need substantial enough continuing INCOME or you need to have significant enough collateral (assets in your own name) that the bank or lending institution can be assured that you will be able to repay the loan AND if you don’t that they have assets they can attach to get their money.</p>

<p>As a student…do you have a job with a decent income? Do you have assets in your own name (think bank accounts, real estate or the like)?</p>

<p>If not, you will need a cosigner who DOES have one or both of these things. Banks and other lending institutions are not in the business of lending money to folks who don’t have some means for repaying the loan (and NO…your future potential earnings do not count). </p>

<p>Perhaps someone can correct me, but I believe the only loans you will be able to get in your own name are the Stafford Loans and the Perkins (if you are offered one). Beyond that, you will have difficulty securing a loan in your name only…of course there probably IS someone out there that will take a “risk” on you…but the interest rates for such a loan will likely be exhorbitant. I would strongly recommend against this.</p>

<p>How much of a loan do you need? Are you SURE you will only need the $5000 for the fall term this year? Is this loan in addition to the Stafford Loans? Stafford loans for four years are about $22000 for the four years…and add your $5000 to that. Some private loans will not be deferred until after graduation. Are you prepared and able to start immediate repayment? </p>

<p>Would the relatives who are helping you out come spring be willing to cosign the loan for the $5000? That is a lot to ask of someone but maybe they will.</p>

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<p>I don’t know much about loans, but as far as credit scores go:</p>

<p>It is perfectly normal to have different scores from the three institutions. Actually I’d consider it odd that two are reporting exactly the same score. They tend to have slight percentage differences and/or weightings.</p>

<p>You should not have a hard time AT ALL getting another credit card with that score. My credit score is just below 700 (only have 9 months of history, 100% on time, ultra low ratio) and I have three cards with a combined limit of $3,400. If you need another card, try a discover student rewards card. I got approved instantly with my highest line of credit on that card.</p>