<p>I'm a 21 year old college student. I go to an out of state school, EFC of 15000. My schools tuition is $40,000 a year. Here's a breakdown of what I pay:</p>
<ul>
<li>Parents pay $22,000 a year</li>
<li>$15,000 in grants from school</li>
<li>$3,000 a year in loans from school (subsidized I believe)</li>
</ul>
<p>I've found myself in a situation where I am in dire need of $15,000 or so. I believe a loan through my bank is not an option because I do not have a job, and because of my age. The loan is NOT for school. I would not be doing this unless I absolutely had to. It is my last resort.</p>
<p>Can someone give me some advice? Would it be possible to get $15,000 in private loans? Would it be illegal to the use loans for anything other than college tuition? Any other information is appreciated.</p>
<p>Thank you</p>
<p>Have you talked to your parents about your situation? I hope that you aren’t trying to hide something big from them and handle it yourself. Needing $15k is a huge deal.</p>
<p>And no, you cannot borrow this amount of money without a cosigner (or a ridiculous interest rate, if you can get it). If you are taking out an education loan, you have to promise to use it for education - which you have said is not true.</p>
<p>YOU cannot get the loan personally, no. Your parents can, but then the loan is on their heads to repay. The onus of paying for college is put on the parents. Your parents are doing well paying what they are for you and avoiding loans.</p>
<p>Where do you get the idea that someone withoout a job to support the repayment of such loan can get one? YOU cannot get the amount to pay for college without involving your parents or other credit worthy adult to take on the oan with you, much less an unsecured loan for …whatever.</p>
<p>Thanks kelsmom. I figured that with loans through the government, that would be the case. But I assumed with private loans, they are more concerned with making money off of you as oppose to worrying about what you are using the money for.</p>
<p>Also, sorry all. Completely forgot to mention. I would be having an aunt of mine cosign. She has good credit history for many years.</p>
<p>I know it’s not my business, but my mom-radar is going off. If you are in a situation you feel you have to keep from your parents, please give them the benefit of the doubt & confide in them. If I’m wrong, I apologize - but your post made me worry about you.</p>
<p>And I hope your aunt keeps her good credit history for many more years. Signing unsecured loans is not a good way to keep ones credit history in shape. The private loans are backed by the federal government which is the only reason why these unsecured loans are available. They are backed by the government because they are to give young people more educational opportunities by permitting their parents to spread the cost of college over more years.</p>
<p>Your aunt would be better off just borrowing the money and then lending it to you. With cosigned loans, TWO people are hamstrung together rather than just one. The cosign part is just a joke in that it is the credit worthy person, that gets the squeeze for repayment. You die, disable, default, or drop out and the loan is all hers. The interest rate on these loans is not so hot either. The Parent loans, the PLUS are close to 8% and the meter starts ticking as soon as the money is released</p>
<p>cptofthehouse, I’m not sure I quite understand. My understanding of private loans is that there is generally a lower monthly payment I would have to make WHILE I am still in school. Once I graduate, the monthly payment increases until I pay off the loan (because they assume you get a job once you graduate and can pay more monthly).</p>
<p>Even if I were to make the monthly payments in full, it would hurt my aunts credit score? How does that work? I will have no problem making the monthly payments; my issue is that I need the $15,000 up front.</p>
<p>First of all private loans are constructed any and every which way. It’s wonderful that you can make some low monthly payment now, but the problem is that too many people are not making good on these loans. Things happen. Also even when you are paying on the loans, the whole amount will be showing up on your aunt’s credit as outstanding which can and does effect her credit rating and could be an issue if she should need credit for something. Plus if anything happens to you before the loan is paid off–those 4 D’s that I mention in my above post, then it’s all on her. The PLUS which is a Sallie Mae loan has close to 8% interest. the interest alone on that amount is up there. </p>
<p>If you have some pressing need, do talk to your parents and get it taken care of with them. They can take out PLUS which has built in insurance, for example and much more flexible terms. If you are truly in trouble they can give you what they are paying to the college and then take out a loan for that amount, and you can pay them back. Even at $200 a month right away, we are talking about 10 years to repay that loan, you understand.</p>