Hi all,
I was attending a private school with parent plus loans and turned 24 and lost my parent plus loan eligibility my senior year. I lived off campus and parent plus refund always paid for my rent which I signed the lease for already. I need private student loans for 1 year of school roughly 12k for off campus living expenses since my school covered my tuition after my eligibility loss but they won’t pay for off campus rent of course but I have already signed the lease and lived in this house for 4 months and usually always paid with the refund which I won’t be getting this time. Landlord is not willing to cooperate whatsoever. To make things worse, my personal credit is bad due to my parents using credit cards under my name once my mother fell sick. (too complicated to explain) But my parents credit is fine. not great but fine. Are there any private loans that my parents can apply for just them, all seem to require students info and SSN and then I end up getting denied even with a worthy co-signer. Basically looking for parent/guardian loans that don’t take students credit into consideration. Please help.
Have your parents go into their bank and see what personal loans are available. Those will be their loans, and won’t take you into consideration at all.
Can you, the student, not get a direct loan with the higher non-dependent limit?
You may also be okay as the co-signer on a private loan (parent the main borrower). The lender wants one party to have good credit, but the purpose of the co-signer is that the person with the solid credit score is responsible, the co-signer is just frosting.
If I’m a lender, frosting that can’t be verified as at least nominally responsible doesn’t sound too appetizing to me. In other words, what’s the purpose of having a co-signer if the co-signer can’t be relied on to pay the debt if something happens to the other borrower or the other borrower defaults?
In this case, the lender may want the student to sign because the student is what makes it a student loan - the student is taking the classes and the classes set the amount of the loan. If there was no student, it would just be a regular unsecured loan (maybe with different terms and conditions?). It doesn’t hurt to have the student sign too. If the student has a turn in finances, that’s good and the lender has another source to look at for collections. If the parent has a change in circumstances (like he dies), the bank can look to that second signer.
They aren’t making the loan based on the student’s credit, but why not have the extra signature?
We looked into a loan with a co-signer once…not for college. The co-signer had to be a qualified co-signer, meaning that co-signer needed to be able to pay back the loan if the main signer didn’t.
Qualified meant that the person had to have some collateral, or sufficient income, or something that would make the bank feel comfortable that the loan would be repaid one way or another.
It doesn’t sound like this student feels he would be a qualified co-signer.
Why can’t the parents just get a personal loan? No co-signer needed.
Because personal loan payback would start immediately unlike student loans. That is the whole problem. We are looking for student loans that can be applied under parents name while mine (the students) credit is ineligible/unsatisfactory
How much did your parents borrow in plus loans?
If the tuition is covered, you should be able to borrow up to $12,500 in direct loans senior year.
If that doesn’t cover housing then try to get more roommates or something maybe.
Can you work on weekends?
I don’t think there are parent student loans other than plus loans, except maybe the PA forward loan.
Can your parents pay anything toward a loan? Run the numbers. It might be possible for them to take a personal loan and just make the minimum payments while you finish your last year of your education.