private loans

<p>I will be attending Penn State in the fall as an OOS. My total financial aid package and savings have brought my remaining cost down to $20K. I am worried if I don't receive any money from the scholarships I applied for I might not be approved for a private loan of $20K. I have no credit, but my parents have good credit. Also, I am expected to pay for the loan (parents will cosign, though). How likely is it that I (and my co-signing parents) will be approved for a private loan of that much?</p>

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<p>No way to answer this. This will be determined by the lending institution based on your parents’ income, other debts, and assets.</p>

<p>Well, my EFC was $9K. The only assets my parents have are a house (mortgaged), two cars, and a pretty small 401K plan (a few years ago, it was cashed out). No investments (stocks, real estate, or bonds). No debts except mortgage. Not even a car payment. My parents have good credit (700s).</p>

<p>But you are only talking about one year correct? What about year 2, 3, and 4? Are there Stafford loans in your name on top of the $20,000 so over $25,000 for one year? I can’t imagine that you are seriously thinking about over $100,000 of loans for a 4 year undergraduate degree? What are your parents saying to you as these loans will be their loans also if they can get approved for that amount (you won’t be by yourself)? Are they really on-board with your idea? Even if you could extend that $100,000 over 15 years it it would be close to a grand a month most likely. You’d have such a huge debt load you’d probably never get loans if you decided to go to grad school let alone or buy much for 15 long years. Do you have any alternative choices that won’t require this degree of debt? Is this even a serious post???</p>

<p>My parents and I pretty confused about this financial aid process. They didn’t attend college and my guidance counselor won’t answer my questions because he says “it’s financial matters”. My parents do think it’s an absurd amount. </p>

<p>I received a scholarship notice in the mail today ($4000/yr) from alumni funds, and I’m very likely to get another decent amount ($5000/yr) from a local scholarship. If I got the second scholarship too, I would need $11000 each year, which is assuming I didn’t receive anything from several other scholarships I applied for.</p>

<p>I was hoping to consolidate loans because I went to attend medical school and PSU has the major (immunology) I want. Plus, PSU is one of five schools that offers this program.</p>

<p>We worked through College Funding Advisors to help us sort through the financial aid mazes. There may be a similar company in your area. It was well worth it to us.</p>

<p>Again as you receive these scholarships (the local one and the one from the alumni association) read them carefully. Some scholarships are one year only, some are for two years, some are for 4 years… Before you make a commitment to Penn State you need to make sure with your parents that you can afford all four years. Clearly your parents will understand that if they take out loans they need to think about the entire cost of your undergraduate education, not just freshman year so make sure you are talking to them.</p>

<p>If you’re concerned that your parents may not qualify for this year’s loan of $20k, then how come you’re not REALLY concerned that they may not qualify for loans for years #2, #3, and #4.</p>

<p>It sounds like you plan on borrowing $80k with co-signed loans, and about $30k in Stafford loans.</p>

<p>That is WAAAYYY too much for undergrad.</p>

<p>What is your likely major and career?</p>

<p>BTW…what exactly was in the Penn St FA package?</p>

<p>*I was hoping to consolidate loans because I went to attend medical school *</p>

<p>OMG…I just saw this. You should NOT borrow that much for undergrad when you’ll need to borrow $200k for med school! (no one should borrow that much for undergrad anyway!!)</p>

<p>Do you realize that even as a newish doctor, you won’t be able to afford the payments???</p>

<p>You do NOT need to attend a certain undergrad just to get into the med school! </p>

<p>Go to a good, inexpensive undergrad, and then go to Penn St. med school.</p>