Question about LOANS

Paying for College
1

Hey guys I have a question about loans for international students. I have no idea about how loans work.

  • First of all, in order to apply for loans, do I apply at the college that I am going to attend or just random company that would lend me the money
  • And second, let's say that I apply for loan, I know that there has to be a person who has US citizenship that is able to sign a paper or something so that I could do the loan. So my question is, is there any handicap or disadvantage that the person who signed will receive UNDER ANY CIRMCUMSTANCES?

Thanks!!

2

Federal loans are the only kind of loans most students can get and they are not available for international students. For US students they can borrow about 5 to 7k per year only. The rest has to be borrowed or cosigned by the parents.

If you are offered a private loan, the cosigner for a loan is just as responsible for the loan as the student is. They are each equally responsible. Tna I believe it is on that person’s credit so if they need a oan for something else they may not be able to get it. And it will affect their credit rating. If the student is not able to make the first payment when due, the cosigner is required to make it. There are circumstances where the loan can be demanded in full. It is very risky to cosign a loan. Students don’t have resources to pay or houses to sell off to pay, and jobs are unknown at this time and far away while interest is building up.

3

Is there any handicap or disadvantage that the person who signed will receive UNDER ANY CIRMCUMSTANCES?
YES ! the loan HAS to be paid back!
Even if you drop out, cant get a job or God forbid- die- it has to be paid back!
Unlike a car or home or any other kind of loan- Bankruptcy will NOT eliminate the requirement that loan be paid back from either your record or that of the person co-signing for it.

4

Your ability to get the loan will also be dependent on the credit worthiness of the cosigner. It’s not sufficient for them to have U.S. citizenship,; they have to have the citizenship as well as the income and assets to take over the loan payments in case you can’t.

As to your first question – many colleges have a list of suggested loan providers that you can consider but you don’t have to use those and you can search for a student loan from any lender that lends money to international students.

5

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  • And second, let’s say that I apply for loan, I know that there has to be a person who has US citizenship that is able to sign a paper or something so that I could do the loan. So my question is, is there any handicap or disadvantage that the person who signed will receive UNDER ANY CIRMCUMSTANCES?

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YES

While the loan is outstanding, that person’s credit rating takes a hit…which means that they may not be able to borrow for their OWN needs…a car…a home…etc. Their credit score goes down while those loans are outstanding.

Also, if you don’t make the payments in a timely manner, then they have to make them…or else their credit gets damaged.

BTW…that person has to reapply every year. What will you do if he/she gets approved for year one and two, but then rejected.

I think it is a BAD idea to do this. Why should you burden someone with this?

6

Are you thinking of borrowing for UNDERGRAD AND MED SCHOOL???