When to apply for a private student loan

Parents Forum
1

My daughter got accepted to her first choice school. I need to apply for a student loan and since this is my first time doing this I need some advice. The bank I wanted to use doesn’t accept applications for loans until June, which I think is crazy. Who can wait till then to apply. We need to send in our deposit now and if she doesn’t get the loan we only have until May 1 to get it back. I need to know now, within the next couple weeks if I will be approved.

So, my question is can anyone recommend a good bank? I’ve researched a few and have an idea of the one or two I want to use but I would like to get some input from other parents before I apply. And when do you usually apply? I mean it doesn’t seem like it’s too early to apply, right?

Thanks so much.

2

You can ask the bank for a pre approval, I believe. But for college…most won’t process loans until June.

3

I know the college won’t process anything till later in the summer but I need to know now if I can get a loan.

4

@Bennymom

That’s not what I wrote.

The lending institutions won’t process COLLEGE loans until June…usually no more than 90 days before classes start.

Ask your bank if they will do a pre approval for a loan for you.

5

We used Wells Fargo for our D’s freshman year on a loan I co-signed because it’s a much better deal than Parent PLUS loans. We received conditional approval in mid-April (subject to returning the signed loan documents) and we chose to have the proceeds split into two disbursements–one at the beginning of the Fall term and the other at the beginning of the Spring term. The college received the checks and our daughter had to sign them at the Financial Aid office before they could be funded. A lot of people don’t seem to like private loans, but Wells Fargo customer service has been great to us.

6

You could get preapproved, then wait to see her other financial aid packages before committing. A first choice school in March may not be the first choice in April if there are low/no loan schools on the table.

7

Take a look at Discover Bank for a student loan. I think you’ll get approval from Sallie Mae now.

We didn’t take out a private loan until our son’s sophomore year. We didn’t apply for that until July/August. Classes start after Labor Day at his university.