<p>Hello there :)
First time posting a thread so sorry if this is in the wrong place! Anyways, I was hoping for some advice regarding private student loans. When I started college I was paying for tuition through federal loans and grants while living at home. My situation has changed and living at home is no longer an option. In addition to that, neither of my parents are in situation that they can help me financially. I am a junior and in order to finish my education I'll need private loans to help provide living expenses. Unfortunately no one in my family has any experience with student loans nor do my friends. I've tried going to my school for help but that was a dead end as well. Is there anywhere I can go to get advice? Currently I'm looking at Chase, Wells Fargo, and Sallie Mae. Unfortunately I'm not sure what the differences of the loans are. Any information or advice is greatly appreciated!</p>
<p>Private student loans are usually not the best option because they do not offer the best payment terms as federal loans due and most of the time they require a cosigner.</p>
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<p>No, for a college student with no credit history, private lenders will ALWAYS require a cosigner!</p>
<p>If living at home is no longer an option, you’re going to need to work to make up the difference. That might mean having to take some time off from school until you can save enough to pay your expenses.</p>
<p>Private student loans are really only an option for the desperate, imho. Have you spoken to your school about becoming a Resident Counselor/Advisor --</p>
<p>My grandparents have great credit and have agreed to cosign a loan for me. I am already doing federal work study along with another job but it’s still not enough. Along with basic living expenses I also have to pay my own car insurance, car payment, etc. and my two jobs still do not cover all of this. An advisor told me I can try to get my dependent status changed to independent for the upcoming school year (2013-2014) but until then (if it even happens) I will need a private loan to make up the extra expenses. A girl who works in my financial aid department said they don’t recommend lenders but she personally used Sallie Mae and has had no issues. I’ve been trying to research it but everything I have come across just says private loans are the devil. Is Sallie Mae a good lender?</p>
<p>Your best bet is to withdraw from school for right now or attend a more affordable school. Work study usually isn’t enough money for tuition. It usually is just spend money. </p>
<p>Avoid private student loans. You will already have enough debt with the federal loans and to put your grandparents on the hook is a major mistake.</p>
<p>What is your major and how much of private loan do you need for the next year and a half?</p>
<p>Shell, you’d need to provide much more info to get any good. concrete advise re: loans. College Costs? Major? School? GPA? Living arrangements? How likely are you to get a job in 2 years? Pay expectations?</p>
<p>In general, I’d agree that private loans are very problematic. However, I wouldn’t say they are the wrong thing to do in all cases. Just remember, you GP’s would be 100% liable for the loans just like you. They are at a fairly high interest rate and payments start right away, in most cases. You won’t find the “right” private loan, only shades of differences between most of those you mentioned.</p>
<p>How is it that your jobs can’t cover living expenses? Have you looked at cutting expenses to the bone? Is a car NEEDED? Needed, NOT wanted very badly - absolutely needed? How many roommates do you have? You’d be surprised how cheaply you can live for a year or so if it’s critical to you.</p>
<p>Your parents can apply for a parents loan through PLUS. If they are declined, you can get about $4-5K more in Staffords. Then you have the private loans. I am not aware of Sallie Mae offering any of them, but you can contact them and find out. </p>
<p>Otherwise, the best sources for those loans are where you or your cosigners already do business. You do realize that the loans are going to be on your Grandparent’s head primarily with you as just extra insurance for when they kick off? Yes, I’m being crude and direct, but that is pretty much the situation. You are just an extra and a drag on the loan application. IF your grandparents can borrow money anywhere at a decent rate and then lend it to you with a private loan between the two of you (grandparent and you) that might be a preferable arrangement. Otherwise, your grandparent or you should contact the financial institutions with which you do business, along with some others as you have named and see which ones will give you the best deal. The loans will be on your grandparent’s credit report,as well as yours, and they will have to pay if you don’t as they are equally responsible for the repayment If you have any issues in repaying, the lenders will go right to them. And if they are no longer in the picture, it’s on your head.</p>