I’ll obviously be using a cosigner. I intend to get $5,500 from the government per year (I qualify for the maximum every year). Plus I’ll need about… $15,500-$16,500 per year from Sallie Mae. My cosigners credit is about… 610-620 and she makes $4,500 per month as an adult entertainer. She has paid off any negative credit and has few or no late payments. Do I even have a shot at being approved? Please let me know.
My other option is to use my cosigner as a Parent Plus endorser. But she might not qualify for that. Her negative credit minimal and any negatives have been paid off/charged off, but settled and she’s NEVER missed any of her own student loan payments.
I can’t speak to the Sallie Mae approval as I do not know much about their approval process - but I just wanted to add some further clarification to the Parent PLUS loan. This is a loan for your parent to borrow, in his or her name. If your parent’s credit is denied, an endorser would be needed. Has your parent indicated wanting to borrow the PLUS loan for your education?
Are you dependent or independent. If the dependent student parent applied for a Plus loan and is denied, you can take out 4l extra to the Independent student limit. But have to mention that the amount you are contemplating to take out sounds like is too much to make payments on. Are you talking total of 80k+?
Dependent/Independent & students with parent denied plus loan
freshman 5,500/9,500
sophomore 6,500/10,500
jr 7,500/12,500
sr 7,500/12,500
Yes. My mother wants to be my plus loan borrower. But I know she will not qualify. She didn’t qualify last year and she’s even worse off this year. She will likely get denied. So my sister wants to be my endorser.
Your credit rating is already not terrific. Your mother’s credit rating is not terrific. And to be honest, it sounds like you want to stretch your endorser so that his/her credit will be at the max.
And you need to borrow $80,000 to go to college.
I know you didn’t ask for this opinion…but this is too much debt for you.
Every University these days is like $15,000 per year. Even Phoenix Uni is like $13 grand a year. That $80,000 for all four years is with everything. Tuition, room and board. Everything. It’s actually a pretty good deal. $20,000 USD a year for a good education at a great school with room and board.
im not sure about the criteria for qualifying for a Sallie Mae loan yourself…but you would absolutely need a cosigner. I would urge you to think further ahead than one year. Your sister, on her $4500 a month income, might be a qualified cosigner this year…but will she be for all four years…that is a hefty loan burden on her.
Thank you, @thumper1. I do realize that and I intend to cut my costs as much as possible. Work during the summers (and they have 4 month summers) possibly during school. I want to attend medical school as well. And medical school their is entirely more cost effective than in the states. Granted that’s if I can even go to University.
Of course there are other options. The main problem is that you may qualify for one year of loan but likely not the remaining years. You need a 4 year plan, not a 1 year plan.
In kindness, this is setting up to be a disaster, potentially for all three of you.
There is a less expensive route: community college for two years, followed by in-state tuition at an inexpensive public university. Or, if you’re inclined, joining the military and taking courses while you are enlisted, and then using your benefits after your enlistment period.
Medical school admission requires great grades and MCAT scores. What college you attend is relatively unimportant. And, medical school itself is very expensive. Loading on undergraduate debt is likely to be a problem that just gets worse if you do get into medical school.
You (well, your cosigner) probably would get the loan this year. It’s ambiguous though if she would be able to get the loan each year for four years, and of course you already know that $80,000 of loans is extremely high (the average American college student borrows about $29,000 total).
If your mother and sister really do want to help you with this then it’s their choice; there’s nothing stopping them from researching the [Sallie Mae student loan](Undergraduate Student Loans - Smart Option Student Loan | Sallie Mae) program and going forward from there. From my experience working with student loan companies, they do tend to prefer credit scores of 720 and above for cosignors. The reason this number is important is because each year, the previous student loans that you have borrowed will count against your credit score (lowering it) since you (she) will have more debt. Additionally, with co-borrowers that have low credit scores, the interest rates and terms will be less favorable.
You may be right about the moneys thing. But my education is about more than money. I’d rather be in heavy debt than be apart from the person I love. I want to go to same University as him. I was accepted. My debts probably won’t even be $80. Maybe they’ll be $40,000 the first two years. And then after I get married, they’ll be cut in half. I don’t want to put my education on the back-burner. I already have for a year.But we don’t want to be separated any longer. There is FAR MORE than education on the line here. Far more. Thank you for your inputs. I appreciate them and respect your opinions. But obviously they are not going to hinder my goals. I plan to put as much of it in my name as possible. And I have some money saved up. And I intend to work during my studies. I have no intention of trying less than my best. That is all. I just wanted to see if she might qualify for the first two years. I need no more. I also might consider a 3 year bachelors if I decide medical school isn’t for me. IN which case my debt again goes down significantly.
You assume that your costs will be lower but who is going to pay those costs? Certainly not a school in Canada. And no, your undergraduate loans do not go away just because you are not going to medical school. Unfortunately you are operating on fantasy.
I understand what you’re trying to say. I don’t think anyone here is trying to tell you not to pursue an education or fight to make it happen. I was just trying to explain the difficulty of qualifying for a student loan with low/no income and a poor credit score (or a cosigner with a low credit score).
I think you should consider applying; there are rules in place (at least here in the U.S., possibly not in Canada) that protect your credit score from taking a ‘hit’ solely because of inquiries relating to student loans as long as you make your decision within a reasonable amount of time (about a month). You already have all the information that you need in terms of your credit score, your/sister’s income, as well as the relative (un)likelihood of qualifying for tens of thousands of dollars in loans each year for 2 to 4 years. This has to be your/your sister’s decision now.
But my education is about more than money. I'd rather be in heavy debt than be apart from the person I love. I want to go to same University as him. I was accepted. My debts probably won't even be $80. Maybe they'll be $40,000 the first two years. And then after I get married, they'll be cut in half.
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You don’t seem to understand. You’re very likely going to find yourself in big debt with NO DEGREE because your co-signer is going to soon lose borrowing qualifications.
Do you understand how Extremely difficult it is to pay off big debt…and even MORE so if you don’t get the degree???
Please let me know.