No Credit-Worthy CoSigner...

<p>I have about two hundred dollars left to pay towards my bill for this semester at school (University of Michigan). I have literally 225.41 saved in accounts after purchasing books and paying the rest of my bill.</p>

<p>I've applied to nearly forty on campus jobs and have yet to hear back, which is fine. The Financial Aid department has emailed asking for payment, and I plan to pay off the remainder as soon as possible.</p>

<p>This leaves me in the pinch of needing to take a loan for general expenses and to pay off the approximately 1000-2000 dollars I'll need to have for second semester. I attempted to apply for loans through SallieMae, but two problems came up...</p>

<ol>
<li>I need a co-signer</li>
<li>Interest payments must be made</li>
</ol>

<p>My parents became unemployed (both) and are living off of scraps essentially. Slowly they are getting back into work, but are saddled with bills that came short while they were unemployed. Their credit has taken a shot, and because of this they will not be approved to co-sign my student loan. I can't find a job meaning I can't make interest payments while in school, so I'm essentially out of luck.</p>

<p>What should I do?</p>

<p>Have you taken out the max in Stafford loans for the year ($5500 for a freshman). No cosigner is required for a Stafford loan. If you have already got the max in Stafford loan have your parent applied for a PLUS loan? If they apply for a PLUS loan and are turned down because of bad credit then you will be eligible for an additional $4000 in unsubsidized Stafford loans.</p>

<p>3500 in subsidized
2000 in unsubsidized
500 in perkins</p>

<p>I’m assuming I don’t qualify for anything more.</p>

<p>

…</p>

<p>they are completely against the idea of even applying for a plus loan after being denied.</p>

<p>Does your campus book store hire staff for the “rush” season? It’s not permanent, but it puts some money in the bank. Also, have you looked for any short term jobs available in the community? Perhaps people need help with yard work, running errands, baby sitting, house sitting, or pet sitting. </p>

<p>Also, it depends on the loan, but it may be possible to defer interest as long as you are in school.</p>

<p>if I can defer interest payments I can find a co-signer no problem.</p>

<p>Do you know of any specifics? I’m trying to look at wells fargo but I’m not seeing anything rock solid, and the language is a bit much.</p>

<p>I understand your parents don’t want to apply for a plus loan because of being denied BUT with that said, they can go thru the motions and apply, get turned down which then makes you eligible for and additional 4000.00 unsubsidized loan whcih you do not need a cosigner Just play the game it s a win-win situatin. This will be deferred til after graduation as well.</p>

<p>^If they get denied and these loans have been made pretty easy to qualify for. If they don’t have awful credit, they’ll get approved.</p>

<p>if they get approved for those I don’t feel they have enough to make the payments, we’re quite hard up currently…</p>

<p>Well if they get accepted they don’t have to take out the loans. But if they get rejected then you will be eligible for more Stafford loans. What are you planning to do otherwise?</p>

<p>

</p>

<p>I’m pretty sure that Parent Plus loan payments can be scheduled to begin after you graduate.</p>

<p>They can be deferred til the student graduates. Also, as swimcatsmom said, they do not have to take the loans if they get approved, but if you were trying to find a cosigner weren’t you planning on paying those?
So why wouldn’t you pay the parent’s plus loan instead? One last thing, if your parents were to be approved for the PPloan, they do not have to take the amount suggested, they can take the amount that you need.</p>

<p>I don’t know why this would be difficult.</p>

<p>flap listed 2000 in unsub. If this is for the fall semester only, which I’m guessing as bills are cleared by semester, then he/she’s already gotten that 4000 unsub.</p>

<p>^^^ I don’t think so. The OP posted that he/she has $3500 sub and $2000 unsub. These are the maximum annual Stafford amounts for a freshman. So I would think they are the annual award, not the semester amounts, and do not include the additional $4,000 available to students whose parents are turned down for PLUS. Especially if the parents have not even applied for a PLUS loan as the $4000 extra requires that they apply and be turned down.</p>