<p>I am planning on going to a UC or Cal State school next year. My parents make around $120K a year (I have 3 younger siblings at home). I guess I don't qualify for Financial Aid, but my parents can't afford to pay for my college either. It is also questionable whether they have good enough credit to co-sign a loan for me (I'm thinking no...). So, will I be able to take out loans to cover all of my expenses without a co-signer? How would I do that? Thanks.</p>
<p>No. As a student with little to no income and little to no credit rating you will not be able to take out enough loans on your own name to cover the cost of college. You will be eligible for Stafford loans which are gov student loans that do not require a cosigner. The maximum for a freshman is $5500. Your parents will also be able to apply for PLUS loans which are loans in their name. If they are turned down for a PLUS loan then you will be eligible for an additional $4000 in Stafford loans. But they must apply for, and be turned down for, the PLUS loans for you to have the eligibility for the additional $4000. A PLUS loans credit check is not as stringent as for some other loans.</p>
<p>Any private loans would require a cosigner with a good credit rating.</p>
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<p>Swimcat, can a student take out a Stafford loan no matter how high his family’s income is or how high the EFC is? If so, would that be unsubsidized? And, if unsubsidized, what does that mean? Higher rate? interest accrues the whole time? What?</p>
<p>dcolb…</p>
<p>what are your stats? What will you major in?</p>
<p>Which UCs and Cal states will you be applying to. Which ones do you live near? Do you live close enough to one to commute.</p>
<p>Your situation is not that uncommon. Many families cannot afford their EFCs these days, so sometimes you have to adjust your wants.</p>
<p>To go away to a Cal State or Cal Poly is costing about $24k per year. It’s costing more to go away to a UC. </p>
<p>** It’s not a good idea to borrow $100k for undergrad. Do you know how much your monthly payment would be? It would be more than 1,100 per month for 10 years. That would be crippling. **</p>
<p>(Actually the payment would be higher because the interest rate would be higher for most of the amount.)</p>
<p>Either you live like a student now, or you like a student for the first ten years after college. You pick.</p>
<p>Yes you can take out a Stafford loan whatever the EFC is. If there is no financial need then it would all be unsubsidized. The interest rate on an unsubsidized Stafford is 6.8% and the interest starts accruing the day the loan is disbursed. </p>
<p>If there is financial need then up to $3500 of the $5500 a freshman is eligible for may be subsidized. The interest rate on a subsidized Stafford disbursed after July 2009 is 5.6% (it will drop some more for loans disbursed after next July). The govt pays the interest on a subsidized loan until the student graduates or drops below 1/2 time, plus a 6 month grace period</p>
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<p>It’s really hard to “live like a [very poor] student” for ten years after college. That covers the ages of about 22 - 32. When most of your peers are getting married, buying homes, starting a family, and driving nicer cars, you’d still be eating ramen noodles and using milk crates for bookcases. Believe me, not only would living poorly get “old” quickly, you’d also deeply regret the (unnecessary) decision that you made. </p>
<p>I disagree with part of the above quote. Either way, the person lives like a student while in college. I think repayment of moderate-to-large student loans just extends the 'living like a student" period another 10 years. Who wants to live like a student for 14 years (and not at least emerge as an MD…LOL)</p>