Private student loan - cosigner with bad credit vs. no cosigner?

<p>I'm receiving the full Stafford loan amount for an independent student (I'm actually a dependent, but my parent's did not qualify for a PLUS loan) and while it covered my tuition costs (I'm getting about $500 disbursed from my school), it's not enough for me to live on. I'm taking a very full load right now and am in a difficult program, so a job is not an option. I've done my best to cut costs, including living at home instead of on-campus (which saves thousands), but I need loan money for school related expenses.</p>

<p>I've been looking at private student loans and it looks like Discver is a good option. My question is, since my parent's credit isn't very good, would it be better for me to apply with them as a cosigner, or without a cosigner at all?</p>

<p>My personal credit is somewhat decent. I have about two years of credit history and a FICO score of just below 700.</p>

<p>Any advice?</p>

<p>Thank you!</p>

<p>How much in school related expenses do you think you will have? Now are these expenses books, gas, materials? </p>

<p>I don’t know if you will qualify for a private loan but it seems you have enough debt already.</p>

<p>Also how old are you?</p>

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<p>I don’t know what the minimum loan amount would be, but $2,000 a semester would be a godsend. The money would be entirely for school related expenses.</p>

<p>As I mentioned, I commute from home to save money (it saves a LOT), but my car is in dire need of repairs and I don’t have the money. If it breaks down, I’m in trouble. I received about $500 from my Stafford loans, but that basically just covered textbooks. I’ve had to pay for things like gas, food, clothes, a few cheap car repairs and other life expenses from the money I had saved up from a summer internship, what little money my parents could give me, and mostly on credit cards. I don’t want to keep using credit cards, though, because I will eventually max them out and it’s going to start hurting my credit at some point. My laptop, which I need for a number of classes, is also on it’s death throws, but I can’t afford to buy a new one. </p>

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<p>I’m really not concerned about my student loan debt at all. Before you think that’s irresponsible of me, the reason I’m not concerned is that I know I’ll get a 60-70k job as soon as I graduate. Living frugally after graduation, I should be able to pay my student loans off in a couple of years.</p>

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<p>I’ll be 23 in a couple of months and I have one year of school left after this one.</p>

<p>Appreciate your advice.</p>

<p>You didn’t qualify for any need based aid and your parents won’t cover food even?</p>

<p>You can try the loan by yourself and tell the lender if you don’t qualify you will add a cosigner.</p>

<p>Can’t you work part time while in school to earn some money?</p>

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

<p>What is your EFC?</p>

<p>“I’m taking a very full load right now and am in a difficult program, so a job is not an option.”</p>

<p>Given your financial situation, it might make sense to cut back on that “very full load” so that you are on a regular load, or even the lightest load that still qualifies you for financial aid, so that you have the time and energy to hold the part-time job that you need in order to cover your expenses.</p>

<p>Love to know how you have a guaranteed $60-$70k job waiting for you. </p>

<p>Learn from your parent’s bad example. No more debt. At your age your credit should be perfect, not “somewhat decent”. Cut back on your workload and get a part-time job. You are not going to get a private loan without an excellent co-signer.</p>

<p>“I’m really not concerned about my student loan debt at all. Before you think that’s irresponsible of me, the reason I’m not concerned is that I know I’ll get a 60-70k job as soon as I graduate. Living frugally after graduation, I should be able to pay my student loans off in a couple of years.”</p>

<p>I’ve heard and read this ever so many times, and it just does not happen often at all the way you are thinking it will. That I can guarantee.</p>

<p>But, to answer your question, you can apply for the loan yourself. I doubt you will be accepted with no job. But with a parent, even with bad credit, the chances may be better since the lender would have both of you mannacled to the repayment terms. Also, the reason that a parent is turned down for PLUS can simply be unpaid obligations for over 90 days, and that might be something that would affect their credit score (which is not used for PLUS), but not killl their chances for those other loans, though it will affect the interest rate. So yes, there are those who are accepted as cosigners for some such loans that do not qualify for PLUS.</p>