<p>Why is it so hard to find information on what I neeedd? Pace gave me a 10,380 parent loan I automatically denied I can't accept it. I dont want any of my parents involved in any of my debts. I want to pay everything that I owe after I graduate from college, but no one ever seems to give me any valid information... I dont want to borrow money from banks if theyre going to make me pay monthly interests or make me have a cosigner, other people havent done that. On college discussion lord knows how many people sign in each day.... one person... one person doesnt know about this?</p>
<p>If you were offered a parent PLUS loan, that means that all the federal loans the school can offer you were awarded first. The final $10,380 will not be made up by any other aid from the school - that is why the PLUS was offered to fill the gap. Your only other option is a private (alternative) educational loan. You can search the threads here for alternative or private lenders - there are some suggested lender lists that parents have provided. You will be able to find out the terms by going to various websites & investigating.</p>
<p>The only loans that do not accrue interest during college are the subsidized federal loans. They are the subsidized Stafford loan and the Perkins loan. With subsidized loans the govt pays the interest until you graduate or drop below half time, plus a grace period of 6 months (sub Stafford) or 9 months (Perkins). If you are eligible for subsidized loans they should be part of your aid package.</p>
<p>All students are eligible for Stafford loans. The maximum Stafford for a freshman is $5500 of which up to $3500 can be subsidized if there is ‘need’ as determined by the school. On any part of the Stafford which is unsubsidized (which can be all of it) you will be charged interest from the day the loan is disbursed to you. However you can usually defer the interest until you start repayment. Of course the interest will be added to the loan and you will be paying interest on the interest. </p>
<p>If your Mom has bad credit and applies for and is turned down for a parent plus loan then you are eligible for an additional $4000 in unsubsidized Stafford loans.</p>
<p>There are no loans outside of subsidized federal loans that will not charge you interest from the day the loan is disbursed to you. That is why people lend money - to make money via the interest they charge. It is hard to find other loans that aren’t either parent loans or at least require a cosigner (which would generally be a parent). This is because the lender wants a guarantee that someone will repay the loan and, as a student without much income or credit rating, you do not have the credit history to be able to show them you are a good ‘risk’.</p>
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That is what most people do if they need money above what has been awarded to them in grant form or in federal loans.</p>
<p>Applying for the Parent Plus loan is probably your best option - please keep reading and dig a little for info before you reject it. The Plus loan will accrue interest while you’re in school but no payments have to be made until after you graduate. It would be a good idea to just pay the interest annually though, if possible, just to keep it from building up. They don’t care WHO makes that payment, it certainly can be you, although your parents will ultimately be responsible if you don’t! </p>
<p>As far as private student loans, I don’t know who’s telling you they got one without a cosignor, but they must have had steady income and a decent credit report. Terms on these vary by lender.</p>
<p>You can find much more info on all types of loans here, just click on the embedded links for details:
[FinAid</a> | Student Loans](<a href=“Your Guide for College Financial Aid - Finaid”>Student Loans - Finaid)</p>
<p>I’d also advise you to play with their loan calculators - if you’re borrowing $10K/year plus max Staffords, and perhaps Perkins, you’d better make sure that you’re going to be able to afford the monthly payments and still live!</p>
<p>There are private student loan lenders who will drop the co-signer in as little as 24 months after you graduate.</p>
<p>That way you get the benefits of your parents’ credit rating to get a low rate, but they are off the hook in a relatively short period of time.</p>
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<p>First…what makes you think that “other people” haven’t needed to make monthly interest payments or have a cosigner to get a private loan. The only way you can get a private loan without these is to have sufficient collaterol so that if you default on your loan, the bank will have something to recover from you. The reality is that if you HAD that much collaterol in your own name, you probably wouldn’t need a loan.</p>
<p>If you don’t want the terms outlined by banks to secure a loan…then you simply do NOT want the loan. YOU (the borrower) do not get to set the terms. The banks do. And they are well within their rights to protect themselves and only loan money to those who have sufficient evidence that they will be able to repay the loan. AND just FYI…they don’t give a hoot about your future earnings and assets. They care about what you have NOW.</p>
<p>College is not free, unlike public K-12. No one is entitled a free college education.</p>
<p>Here:</p>
<p>-Every loan charges you interest. Every single one. Even subsidized ones – they still charge you interest, it’s just that the government pays it while you are in school. After you graduate, the loans still accrue interest and you still have to pay it.</p>
<p>-Banks make you have cosigners because you have no credit history and they basically have no reason to trust that you will pay their money back. They want someone that they CAN trust, based on a history of repayment, so they require cosigners. College loans have no collateral – they can’t come and take your diploma away if you don’t pay – therefore the requirements are often stricter.</p>
<p>-Having a cosigner doesn’t mean that person has to be involved in paying it back. It just means that if the bank can’t get YOU to pay it back, they will go after your cosigner. My father is the guarantor on my apartment; he doesn’t have anything to do with my apartment. I pay my rent on time every month, and they don’t bother him. They won’t bother him unless I refuse to pay my rent.</p>
<p>So if you need the $10,000, you have a couple options. Your parents can take out the PLUS loan, if they are willing and eligible. It has a much lower interest rate and much better terms than what a bank will charge you. Or you can go to a bank, and take out a private loan in your name, which will have a higher interest rate and worse terms (read: they will be generally less forgiving if you lose your job, fall ill, fall upon hard times, etc.) Or you can go to a cheaper university where you won’t need the $10,000.</p>
<p>That’s pretty much…it.</p>
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<p>Is your questions: Where can I get a loan that doesn’t require me to pay interest, and I don’t have to have a cosigner?</p>
<p>If so, the answer is: Only the federal government subsidized student loans have that feature. Your aid package included the max the federal government will give you. There are no other loans that are available as you have described. Any other loan will require you to pay interest while in school.</p>
<p>BTW: With the federal government subsidized student loans, once you are out of school, you have to start paying the interest.</p>