Taking out a loan with an adverse credit history?

<p>So I was accepted into UC San Diego as an OOS and as you can imagine, the cost of attending there will be crazy-expensive. Even with the grants and scholarships that I received, the net cost of attending there for me will be around $31,000. There are options that I can go to in order to pay the tuition, which includes taking out loans. One of the options that UCSD has suggested for me is the Federal Direct PLUS Loan which is the biggest amount of $ that a loan company can give parents of undergraduate students. However, there lies the problem. For the PLUS loan, not every parent will qualify for that as those with an adverse credit history will not qualify for the loan. My dad's company collapsed a few years ago and although he did find himself a new job, our family had to undergo bankruptcy in the process. In other words, yes, my parents have an adverse credit history so we will probably not qualify for the loan. It is my dream to go to a UC school (not to mention the UC's are the only good OOS schools that I have been accepted to) but unfortunately, my family is out of options. I was wondering if there was any way to get the Federal Direct PLUS Loan company to lend my parents the money even with a bad credit history and if not, if there were any other loan companies that are willing to lend us a large amount of around $20,000 a year (or if I can get the loan out of my name, which I don't think is possible with the PLUS loan but maybe it is?).</p>

<p>Oh and fyi, don't worry about my family paying off the loan because I am willing to get a part-time job during my undergraduate years and full-time during break and I read online that undergraduate students make around $10,000-20,000 a year with that option.I know that some of you are thinking that I could use that option to just directly pay for tuition instead of taking out a loan but I'm pretty sure that I have to pay in full to UCSD on the spot in order to attend which will be this fall which won't be enough time for me to work off the tuition. Unless someone who knows how payment plans at UCSD goes can tell me that the school will give those who are having financial difficulty more time to pay off tuition?</p>

<p>Sigh. Did you not apply to any schools that you can afford, such as your state’s public schools, or private schools that offer good merit scholarships?</p>

<p>Your best option at this point is to take a gap year and work fulltime, then re-apply next fall. Do not take community college classes if you want to apply as an incoming freshman, as most schools give merit only to incoming freshmen. There are some exceptions, so start looking at schools and plan accordingly.</p>

<p>You should find a more affordable college.</p>

<p>Did you apply to any IS schools? I agree with others that you should find a more affordable school. You path has “bad idea” written all over. Good luck. </p>

<p>If your parents have an adverse credit history, they will not be able to borrow this much money in PLUS loans, nor should you ask them to. You cannot borrow that money in your own name with out a cosigner with good credit. </p>

<p>An undergrad student working part time is highly unlikely to earn anywhere near $20,000. </p>

<p>This school is unaffordable for you. Time to be practical and look at more affordable options. Good luck.</p>

<p>For what it’s worth, if your parents are turned down for a ParentPLUS loan, you will be eligible for additional Stafford loans money. $9.5k first year, $10.5k second year, $12.5k third and fourth years. But that’s a lot of money for an undergraduate to borrow!</p>

<p>I don’t know any kids making $10-20K a year. My one son did make $9K one year, but he had a full card of private lessons at $50 a half hour and worked 2 other jobs as well. Yes, there may be the rare student making that kind of money, but not hardly. It’s tough for full time workers to make $20K a year. If you can do that, take a gap year and get started and you can then put $20K towards your first year of college, then work at that rate or close to it during the first year of school to put towards your second year of college. You gotta do it to show it can be done. Wouldn’t do it on a flight of fancy which is what I think you are on.</p>

<p>Your parents and you cannot afford this school without getting further into financial difficulty. Look at some more affordable options.</p>

<p>Just to clarify oldmom’s excellent point. The additional Stafford loan will bring the total you are eligible for (if your parents are denied PLUS) up to $9500 for freshman year, an increase of $4000 over the normal limit of $5500. </p>