<p>Hey I am beginning the process of applying for private loans, and I will like to know is it wise to apply for a private loan, with a co-signer that has bad credit? I am applying for the following student loans...</p>
<ul>
<li>Wells Fargo Collegiate Loan</li>
<li>PNC Solution Loan</li>
<li>Citizens Bank TruFit Student Loan</li>
<li>Union Federal Private Student Loan</li>
<li>Discover Certified Private Loan</li>
<li>CitiAssist® Loan from Citi
[Suggest any other?]</li>
</ul>
<p>I WILL need a Co-Signer to apply, because I do not have a steady income, and no credit history. So I will need to put my mother down as a co-signer, but there is one problem, She has bad credit. Is this wise to do? My grandmother told me to put down my mother as the co-signer because "her credit cant be that bad"... Would this be a wise thing to do, and if she get denied, what would happen from there. Would I be able to get another co-signer?</p>
<p>Thank you... AND please respond, need this info! :)</p>
<p>P.S Also, I am 17, and will be turning 18 in August... Will this in any way effect my college loan process negatively?</p>
<p>more to thumper1’s point, by way of an example… there’s a limit as to how much one’s qualified to borrow. So, let’s say you need $40,000 for all four years of college, but the maximum your co-signer can borrow is $20,000. How would you borrow the other $20K? BTW, your age won’t effect the loan process; that’s why banks require a co-signer. If you won’t pay the loan back, the co-signer will.</p>
<p>That what I am saying, so many factors can come into play if I apply with my mothers bad credit history… Idk what to do, In a nutshell, it is basically unwise for me to apply with a co-signer that has bad credit…</p>
<p>Then you need to go to a school that you can afford without private loans. Remember that you, by yourself, can take out $5500 your freshmen year, $6500 your sophomore, and $7500 beyond that.</p>
<p>There should be a county or community college within commuting distance for you. Find out if that school has an articulation or guaranteed transfer agreement with Rutgers for your major. You can study at the CC for two years for very little money (or even three years part-time if you need to work) and then transfer to Rutgers.</p>
<p>If you need to take out private loans that are this big for college, the college is too expensive for you.</p>
<p>FIrst of all, your mother can apply for PLUS. They are far more liberal than private lending companies and banks and she can apply on line and get an answer immediatley. If she is denied, you will automatically be eligible for more Stafford monies. </p>
<p>However, what others are telling you about looking at cheaper options is right on. If you car going get an on line education, get it from state sources. You want to pay as little as you can. Check out your local state universities and community colleges for what they have available.</p>
<p>I am sorry, I mistyped my info… I will be attending Rutgers Newark for the fall semester, and will be living on campus. Rutgers Newark cost around $ 25,000 annually, and I got around $ 9,000 in aid from Rutgers/Fed. So I will need around $ 16,000, take or give $ 500. I have a single mother, who who’s hours have been cut, and raise has not been risen for two years [She works for Social Security, and the recent cuts made by congress effect her as well]. 2 Children are dependent on her, and child support is on and off, and not as high as it should be meaning that my father has 5 other children, also my child support will cease to come in once I turn 18. Do you think I should be eligible for more federal aid? I mean I HAD TO Get a job, just to apply for schools, and pay for my SATs/SAT classes!!! I am thinking of changing my FASFA’s child support reporting because I think she estimated at that. Also my EFC is around 07000… Is this possible? I mean How can a single mother of 2, who’s hours and raise have been cut for 2 years, not receive good aid? Please help…</p>
<p>Also, what would be considered BIG for a private loan? And what is the usual private loan amount that is taken out? I considered CC, but my dad was completely against the idea for some reason… </p>
<p>ALSO MUCH THANKS to the others that responded… :)</p>
<p>I am also thinking of redoing my FASFA in general with someone who is more knowledgeable about filling this stuff out. My mother and I did it, but I have a feeling if we do it with someone who is more qualified to fill this type of stuff out, we will get more aid…</p>
<p>If your dad is completely against the very sound fiscal plan of first studying at a local community college for two years and then transferring in order to save $50,000, then perhaps he would care to HELP FINANCE your education.</p>
<p>CC is a very very good idea in your present situation. Get your associates degree and then transfer. Super smart financial move! Tell your dad he’s crazy (in a nice way ;)</p>
<p>PS. Rutgers has “gapped” you, meaning the cost differential between your EFC and the amount of aid offered leaves a “gap.” Did you apply to any other schools that perhaps meet need? Then you would need the $7k EFC, but perhaps between your two parents they could come up with that!</p>
<p>Private student loans, not a good option. Nearly every horror story you read in the paper is related to private loans and their terms…variable interest rates, bad terms, non-dischargeable in bankruptcy, plus you need a co-signer.</p>
<p>Really, just don’t do it.</p>
<p>Instead consider the options which you could pursue whilst living at home and perhaps two years of community college before moving to the four year university?</p>
<p>You might work through the formula and see if you made an error, it is easy to mis-read the instructions, especially when you are new to FAFSA and it all is confusing:</p>
<p>Since Dad is so against community college, he’ll take out PLUS for you. WIth the diminished child support perhaps next year your EFC will go down. This year it will include what ever support your mother got last year. FInancial need is based on what happened the year before with few exceptions. So that your dad is not paying this year does not enter the picture until the following year.
Posts
if your mother is turned down for PLUSPosts, you will automatically be given an addtitional $4k in Staffords, giving you a total of $9500 in loans and $9k in grants. unless the Stafford is already in that $9K figure. That leaves a gap of $6500. If between your dad and you, you can come up with the amount through work, savings and maybe a loan on his part,you are home free for year one.</p>
<p>Otherwise, you should seriously consider communting to a state school your first year and see what the numbers will show for next year. Perhaps you can get some money saved–pay your mother rent with your earning so SHE, not you can save it up for college as it will count more heavily against you in terms of EFC calculation. </p>
<p>However, you might want to run some numbers as to what kind of EFC you will have without your child support in the picture. It is possible, depending on the amount, that you still will not be PELL eligible.</p>
<p>It seems to me that your mother is heavily burdened enough without being held responsible for more in loans. Unless you can get your Dad to be the co signer or really take out loans for you as in the PLUS loans, you need to rethink other alternatives.</p>
<p>Maybe, if the child support is used as income last year and will not be there next year, MAYBE the financial aid department will give you a special circumstances adjustment as they are predicting next year’s income based on last year’s income. If your Mom can show the court order ends at whatever time period, age , HS grad, etc., they may be able to justify that reduction.</p>
<p>Thank you for all the information. And you are right, if my father is that serious about me not going into the military, or CC then he should consider helping me finance my education… I will apply for the loans anyways, and the parentPLUS despite my mothers credit history… And I have already began the process of talking to her about fixing her credit. I am also considering CC, only as a last option though… Also, another question. How much is the “average” student loan taken out from a private lender annually [yearly]? Is 15,000 to much?</p>
<p>Any amount taken from a private lender is really too much, Tevin. The Stafford maximums are really a good guide for what you should be taking in loans. Maybe an exception for other subsidized federal loans. If your mother is turned down for PLUS, you can get another $4K in loans. That puts you up to $9500 for freshman year alone. You will get increased amounts as an upper classman, but that means about $50k in loans. Think about what it takes to repay that amount. Look at some repayment schedules. Really, you need to talk to your dad and ask him if he will take out a PLUS for you if he can possibly afford it. He has a lot of opinions on what he thinks you should and should not do. Now he can put his money where his mouth is.</p>