Private Loans

<p>Hi everyone,
I feel stupid for asking this but when you apply for private loans do you apply for all 4 years in one big loan? If you apply by semester does your cosigner have to cosign for every single semester? I am currently going to a community college and don't need any private loans but I want to transfer to a University and want to know how these loans work. I would feel more comfortable asking someone to cosign once than having them do it every 6 months! Help?</p>

<p>I never took a private loan but I am up so I will answer my understanding. Do understand that since it is a private loan there aren’t specific rules like for federal loans. You can take any amount on any terms by negotiation if the lender agrees. Do you really have a cosigner stupid enough to put a huge lump sum of cash into your hands, though? Otherwise what you are implying is having a line of credit that you draw on periodically, and that may be just as difficult.</p>

<p>You usually will take it per year. I suppose some do take it per semester. Yes absolutely the cosigner has to sign for each and every loan you take. Read more here
<a href=“http://www.finaid.org/loans/privateloan.phtml”>Your Guide for College Financial Aid - Finaid;

<p>Make sure you take advantage of all your options before taking out extra loans.</p>

<p>My cosigner is family, my mom has horrible credit so, I’m going to ask one of my grandparents ( they make the amount of loans I need for all 4 years in 3 months so to them this loan wouldn’t be a HUGE lump) and the starting salary for the field I’m planning on going into is around 50k so hopefully I can convince them. Thanks for clearing up how often people typically take the loan out. Any other people have experience with this?</p>

<p>

See <a href=“http://www.direct.ed.gov/”>http://www.direct.ed.gov/&lt;/a&gt; A dependent student can borrow up to $7500 Direct Loans for 3rd and 4th year; and a parent can borrow Direct PLUS Loans for the remaining COA. You should exhaust all federal loan eligibility before exploring private education loans.</p>

<p>As a junior transfer, you can borrow 7500. and if your mom applies for Plus and is denied, you get an add’l 4k. </p>

<p>Are you low income? Do you qualify for any Pell Grants?</p>

<p>Will you be transferring to a state school? do you qualify for any state aid? </p>

<p>We are technically low income my mom makes about 20k a year I do qualify for grants. My brother will also be going to college if that matters. I am going to transfer to Texas Tech University and I live in New Mexico now. I have done all the math and I think I will be getting all the aid I can I qualified for some scholarships over there but it still comes out to about $6000 a year that I need.
Thanks for the suggestions </p>

<p>Would it be less expensive to go to UNM or NMSU?</p>

<p>OK. but it seems like you should ask your mother to apply for the Parent Plus so when she gets turned down you can borrow the extra 4,000 yourself. This way you have the protections and benefits of the federal loans, you can have income based repayment, for instance. And you don’t have to have the grandparents sign. This would be done annually. For the other 2k of the COA, you may be able to save that through cheaper living arrangements, buying used books, getting small job, etc.</p>

<p>“”"
We are technically low income my mom makes about 20k a year I do qualify for grants. My brother will also be going to college if that matters. I am going to transfer to Texas Tech University and I live in New Mexico now. I have done all the math and I think I will be getting all the aid I can I qualified for some scholarships over there but it still comes out to about $6000 a year that I need.
Thanks for the suggestions
“”"</p>

<p>Your EFC is already 0, so having a brother in college wont make a difference. </p>

<p>Paying OOS for TTU isnt a good idea. You need to go to school in NM.</p>

<p>What is your major and career goal? how much will you be earning upon graduation?</p>

<p>What aid have your been AWARDED from TTU? </p>

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<p>what are Texas’ rules for residency? will your mom have to move to TX??</p>

<p>TTU offers in-state rates for NM counties that abut it. But that doesn’t make the basic costs lower than UNM or NMSU. The question is what’s the cost after FA and merit?</p>