I have a lot of private loan questions!

<p>Basically, I <em>think</em> my financial aid package leaves me with ~ $6,000 to pay out of pocket this year, but I'm really not sure...anyway, assuming I end up having to pay $6,000, does that mean I have to take out a private loan? We don't have $6,000, and whatever money I make working this summer is going to go to personal expenses (clothes, computer, dorm stuff, etc.). </p>

<p>I have no credit history, and I can't use my mom as a co-signer because she has horrible credit (she goes to those payday advance places all the time and never pays them off). Does that mean I'm going to be stuck with a really high interest rate? And how can I build my credit history this summer...should I just get a checking/savings account and a credit card with a low limit? I really don't want to use a credit card! </p>

<p>Is the Sallie Mae corporation a good place to get loans from? My mom says it's the best, but considering her financial history, she's not exactly someone I trust when it comes to these matters.</p>

<p>Sallie Mae is not really all too very lovely. </p>

<p>I think that since you are mature minded enough to understand that you might have to foot 6k of your University bill, then...</p>

<h1>1 Speak with the fin aid folks of your University. Ask about work study as well as what kind of small loans you might qualify for.</h1>

<h1>2 I do not think it would harm you to open a bank account. But, please learn of what kind of income protection allowance is applicable to your situation.</h1>

<p>Is this 6k for both the fall and spring? If it is, then that is only 3k a semester. You can work off part of that with a two semester work study gig. And, then maybe obtain a small humble loan for the difference. Then, maybe you could babysit or tutor for spending money?</p>

<p>I wish I could get work-study...but I didn't qualify! You can only get work study at my institution if it's included in your award package, and it wasn't included in mine. I guess I'll make an appointment with my financial aid advisor to talk about it, then! </p>

<p>And yeah, it's $6000 for the whole year. I guess I find myself leaning more towards a loan because I'm not the best multi-tasker in the world and I don't know if I'll be able to work during the school year...tutoring's definitely high on the list of options, though.</p>

<p>@sous_lepon
Are you going to a Chicago area university?</p>

<p>Yeah, why?</p>

<p>my understanding, from a friend, is that the best way to go is mom applies for the loan and gets rejected. once that happens the school can help you get loans in your name.</p>

<p>Re: personal expenses...you can try to keep those to a minimum. While it's nice to have "dorm stuff", perhaps that is a place where you can save some money. When it was time to go "shopping" for dorm stuff, we did the shopping in our linen closet and in the kids' bedrooms. They really needed little that they didn't already have. Neither bought new clothes to take to college...they took what they already owned. DS took the computer he used here at home (the old used one) for his freshman and sophomore years. It worked just fine. Both were very cautious about spending and both go to colleges in VERY expensive parts of the country. Neither spent more than $100 per month on "extras". Both took advantage of free and reduced entertainment on their campuses, and neither went out to eat much. Both also found jobs on campus (DD did get work study added to her finaid package, but the job she found was NOT a work study job). DS found a job that was not on campus. In both cases, there were plenty of jobs on campus even for those who did not qualify for work study. For HS graduation, both kids got gift cards to different places, and those gift cards bought anything "new" that they needed. That meant that their summer earnings could at least partially be used for the cost of attending college...paying some of the EFC.</p>

<p>@souslepon
I'm in the same situation as you, and too need a loan to fund my college education and I too will hopefully attend a university in Chicago as well. If you don't mind me asking...specifically which university do you need money for? UC, Northwestern, UIC, Loyola, DePaul?</p>

<p>I would avoid any company associated with Sallie Mae...either as the direct lender or as the loan servicer.</p>

<p>Ditto...avoid Sallie Mae. Actually there is pending legislation to investigate some questionable loan practices, along with some universities who were just as guilty of questionalbe tactics.</p>

<p>Yep...and the sad thing is....Sallie Mae's actions may enable Congress to do away with FFELP lending entirely and force schools into Direct Lending, which is a bad thing for students...say goodbye to repayment benefits which reward on-time payments!</p>

<p>@kunfuzed - UIC. Although, so far all I have is my <em>estimated</em> award, so I guess after the housing assignments are made, I'll know for sure how much money I need. </p>

<p>Yeah, I was reading about Sallie Mae (on wikipedia, hahaha) and I guess it's not the best place...I'm thinking I should just go to my bank (when I have a bank account)? Is that what people normally do?</p>

<p>
[quote]
When it was time to go "shopping" for dorm stuff, we did the shopping in our linen closet and in the kids' bedrooms.

[/quote]
</p>

<p>Back in the day (and I didn't live in the dorms), my roomie and I would do our shopping during move in and move out time at the local dumpsters. You could even do furniture upgrades. "Hey, this endtable only has 2 broken legs".</p>

<p>Only trouble would be bad weather. Soggy couches take a long time to dry out, and they stink pretty bad while they do.</p>