<p>My parents are in a credit card debt program that ruined their credit.<br>
I am going to be a Senior this year planning to major in music. Are there any loans out there that I would not need a co-signer for?</p>
<p>What options do I have? </p>
<p>My parents make enough money that I will not qualify for need-based aid.</p>
<p>They can help me a little bit, but not enough to pay for full tuition at my state university.</p>
<p>Thanks for your help!!</p>
<p>Your parents will first have to apply for & be turned down for a PLUS loan (they have to file the FAFSA after January 1, 2009 & then apply for the loan). If they are turned down, you will be eligible to borrow more through the Stafford Loan program than you would otherwise be. For 2009-2009, a freshman whose parents are turned down for a PLUS can borrow up to $9500 in Stafford Loans. Only $3500 of that <em>can</em> be subsidized, meaning no interest accumulates until payback time. The rest is unsubsidized, meaning interest starts accumulating as soon as the loan is disbursed (pay right away or wait & pay the accumulated interest later when you repay the loan). Also important to note --- the first $3500 is subsidized only if you have "need" as defined by your school's cost of attendance less your family's expected contribution less any other aid (including merit scholarships). For the portion of that $3500 for which you don't have a calculated need, the loan would be unsubsidized.</p>
<p>The Stafford Loan is a good program in terms of interest, payback, etc. Also, you are able to borrow the full amount (although much if not most is unsubsidized) even if your family does not qualify for need based aid. This is because the Stafford Loan can be used to replace the family's Expected Family Contribution.</p>
<p>Check out this site for current Stafford limits:</p>
<p>Thank you so much for the reply and information...</p>
<p>So, do I understand correctly that I do not need a co-signer for a Stafford Loan?</p>
<p>Also, does it matter if I have never had a formal job before? </p>
<p>Does having a job during high school help a student in the loan process? </p>
<p>Thanks again!!</p>
<p>The Stafford loan is for college students. You will need 2 references, but they are NOT cosigners (my D used her grandparents - they were never contacted in any way). Because it's for kids coming out of high school, no work history or credit history is necessary. The loan is completely in the student's name & is the student's responsibility to repay.</p>
<p>It is always best to keep loan amounts to a minimum, of course. If you have to borrow, though, the Stafford loan is best. Well, actually, the PERKINS loan is best ... but not all schools offer Perkins loans. That is another government loan program, and the loan terms are even better than the Stafford terms. If you get offered a Perkins, it's a great deal (lowest interest rate on a student loan).</p>
<p>Hi kelsmom,</p>
<p>Thanks sooo much for that info!! I cant tell you how relieved I am!!</p>
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