can't take private loans...what do i do?

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
MapleM
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can't take private loans...what do i do?

Postby MapleM » Tue Feb 23, 2010 4:14 pm

My problem is that even if I am eligible for the maximum amount of the stafford and the perkins, both subsized and unsubsized, they won't fully cover my tuition, which is about 39,000 for 2010-2011...

My EFC is 6490.
I have no credit (also no debt), which means I cannot take private loans out.

My husband has an excellent credit score, but he doesn't want to be a cosigner for my loans because he doesn't want to risk his credit and I understand that. I need his credit to stay excellent for our future.
I am a permanent resident with a citizenship from an asian country.
my family won't help me financially either.

Does anyone know what my options are??

Geist13
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Re: can't take private loans...what do i do?

Postby Geist13 » Tue Feb 23, 2010 4:19 pm

Google "Grad Plus Loan." It's a federal loan that goes beyond the stafford loans, which don't even cover tuition. There is no limit for grad plus. Don't worry, it will all be taken care of (by borrowing absurd amount of money). Stafford and Perkins doesn't cover anyone's tuition, except those with scholarships or in state.

AsylumPB
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Re: can't take private loans...what do i do?

Postby AsylumPB » Tue Feb 23, 2010 4:21 pm

I don't see a lot of options for you without using your husband as a co-applicant. One option would maybe be to take a year off and save every penny you can to use towards tuition. Another option (I don't know how feasible this would be for you) is to attend part-time and work part-time to pay for the tuition difference that way. Unless you plan on defaulting on your student loan debt, I see no reason why your husband isn't willing to sign as well.

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anmo
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Re: can't take private loans...what do i do?

Postby anmo » Tue Feb 23, 2010 4:22 pm

MapleM wrote:My problem is that even if I am eligible for the maximum amount of the stafford and the perkins, both subsized and unsubsized, they won't fully cover my tuition, which is about 39,000 for 2010-2011...

My EFC is 6490.
I have no credit (also no debt), which means I cannot take private loans out.

My husband has an excellent credit score, but he doesn't want to be a cosigner for my loans because he doesn't want to risk his credit and I understand that. I need his credit to stay excellent for our future.
I am a permanent resident with a citizenship from an asian country.
my family won't help me financially either.

Does anyone know what my options are??


:shock:

I'm not able to offer you much advice, I'm no expert in financial aid... but seems like the easy solution is for your husband to act like a husband.

Sorry about your situation, hopefully others offer actual advice.

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GATORTIM
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Re: can't take private loans...what do i do?

Postby GATORTIM » Tue Feb 23, 2010 4:24 pm

get a different husband...what a dik

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sirchristaylor
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Re: can't take private loans...what do i do?

Postby sirchristaylor » Tue Feb 23, 2010 4:25 pm

I believe anyone with good credit can be your co-signer. I would try to find someone besides your husband if he's still not willing to cosign.

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adrib
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Re: can't take private loans...what do i do?

Postby adrib » Tue Feb 23, 2010 4:28 pm

I don't know why we're giving the OP's husband crap for not co-signing; if something happened and they suddenly couldn't pay on the loans, it doesn't make sense to have two people's credit in the shitter. It's smart to have at least one person in the marriage that can take out loans in the future, no?

Anyway, I thought we were all doing GradPlus for whatever Stafford doesn't cover, no?

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Helmholtz
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Re: can't take private loans...what do i do?

Postby Helmholtz » Tue Feb 23, 2010 4:31 pm

adrib wrote:I don't know why we're giving the OP's husband crap for not co-signing; if something happened and they suddenly couldn't pay on the loans, it doesn't make sense to have two people's credit in the shitter. It's smart to have at least one person in the marriage that can take out loans in the future, no?

Anyway, I thought we were all doing GradPlus for whatever Stafford doesn't cover, no?


Probably would need a cosigner for GradPlus.

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Lawl Shcool
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Re: can't take private loans...what do i do?

Postby Lawl Shcool » Tue Feb 23, 2010 4:36 pm

Helmholtz wrote:
adrib wrote:I don't know why we're giving the OP's husband crap for not co-signing; if something happened and they suddenly couldn't pay on the loans, it doesn't make sense to have two people's credit in the shitter. It's smart to have at least one person in the marriage that can take out loans in the future, no?

Anyway, I thought we were all doing GradPlus for whatever Stafford doesn't cover, no?


Probably would need a cosigner for GradPlus.


False. GradPlus requires no cosigner. Look on the school page under 'student budget'. That is the limit for how much you can borrow. It is usually around 65k per year.

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adrib
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Re: can't take private loans...what do i do?

Postby adrib » Tue Feb 23, 2010 4:37 pm

Helmholtz wrote:
adrib wrote:I don't know why we're giving the OP's husband crap for not co-signing; if something happened and they suddenly couldn't pay on the loans, it doesn't make sense to have two people's credit in the shitter. It's smart to have at least one person in the marriage that can take out loans in the future, no?

Anyway, I thought we were all doing GradPlus for whatever Stafford doesn't cover, no?


Probably would need a cosigner for GradPlus.

Dammit, I need to reread; I thought you were good to go as long as your credit wasn't bad.

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Helmholtz
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Re: can't take private loans...what do i do?

Postby Helmholtz » Tue Feb 23, 2010 4:40 pm

JPU wrote:
Helmholtz wrote:
adrib wrote:I don't know why we're giving the OP's husband crap for not co-signing; if something happened and they suddenly couldn't pay on the loans, it doesn't make sense to have two people's credit in the shitter. It's smart to have at least one person in the marriage that can take out loans in the future, no?

Anyway, I thought we were all doing GradPlus for whatever Stafford doesn't cover, no?


Probably would need a cosigner for GradPlus.


False. GradPlus requires no cosigner. Look on the school page under 'student budget'. That is the limit for how much you can borrow. It is usually around 65k per year.


Graduate PLUS Loan for Grad Students

"Do I need a co-signer?

You might need a co-signer if your credit is insufficient. Graduate students with good credit should not need a co-signer to apply for the loan. If you get denied, you can re-apply with a cosigner."

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Helmholtz
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Re: can't take private loans...what do i do?

Postby Helmholtz » Tue Feb 23, 2010 4:42 pm

Helmholtz wrote:
JPU wrote:
Helmholtz wrote:
adrib wrote:I don't know why we're giving the OP's husband crap for not co-signing; if something happened and they suddenly couldn't pay on the loans, it doesn't make sense to have two people's credit in the shitter. It's smart to have at least one person in the marriage that can take out loans in the future, no?

Anyway, I thought we were all doing GradPlus for whatever Stafford doesn't cover, no?


Probably would need a cosigner for GradPlus.


False. GradPlus requires no cosigner. Look on the school page under 'student budget'. That is the limit for how much you can borrow. It is usually around 65k per year.


Graduate PLUS Loan for Grad Students

"Do I need a co-signer?

You might need a co-signer if your credit is insufficient. Graduate students with good credit should not need a co-signer to apply for the loan. If you get denied, you can re-apply with a cosigner."


That's what I read, but I guess it might be wrong. I guess OP just has no credit history, not really adverse credit.

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adrib
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Re: can't take private loans...what do i do?

Postby adrib » Tue Feb 23, 2010 4:47 pm

no, i think i was way wrong: someone in this thread said they have no credit history and needed a cosginer
viewtopic.php?f=15&t=34442

MapleM
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Re: can't take private loans...what do i do?

Postby MapleM » Tue Feb 23, 2010 4:52 pm

wow, thanks a lot everyone for quick responses!!

I didn't know about the Grad Plus so that is really good to know.

It sounds like either way, I will need someone who can be my co-signer since I have no credit and it has been only about a year since I moved to the US.

It's not that he doesn't want me to go to law school or anything. He just fears that something happens in the future, his credit gets screwed, and both of us fall in a huge financial mess that we can't get out of.

He himself doesn't know much about the Grad Plus loan, so I guess we need to find out more about it.

He once said that depending on how him being a co-signer will affect his credit, he may agree to co-signing my loans...

I know to some people, he sounds like a self-centered dick, and if I didn't know him, I would feel the same way,
but he has been very supportive for me and is very very realistic and cautious when it comes to money...

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Lawl Shcool
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Re: can't take private loans...what do i do?

Postby Lawl Shcool » Tue Feb 23, 2010 7:57 pm

OP, stop getting financial aid advice from a forum. You need to a call a lender who works with the school you will be attending. All GradPlus loans are through participating banks, like Chase for example. Schools will provide you with their list of lenders. I have never heard of anyone needing a cosigner. I had no credit when I applied and did not need one.

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im_blue
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Re: can't take private loans...what do i do?

Postby im_blue » Tue Feb 23, 2010 8:57 pm

Yeah, you don't need a co-signer for GradPLUS unless you have BAD credit (which isn't the same as having no credit), such as bankruptcy, foreclosure, delinquent debt, etc.

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tstyler98
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Re: can't take private loans...what do i do?

Postby tstyler98 » Wed Feb 24, 2010 8:07 am

If your husband will co-sign (or whoever), work over the next 3 years to build up a credit history. Get a credit card, use it and pay it in full each month. Having the student loans in both your names will also give you some credit. Then, when you graduate, you can consolidate your federal student loans in your name only. Then, they will be out of your co-signers name.

By consolidating, you will have a maximum of 30 years to pay off the loans (payback time depends on the total amount of loans; the higher they are, the longer you have to pay them off). There is no payback penalty so you can pay them back over the normal 10 year period if you want by paying extra principal each month. And it still allows Income-Based Repayment.

Check out this site for details: https://loanconsolidation.ed.gov/AppEnt ... pindex.jsp

There is also a site called Credit Karma (https://www.creditkarma.com/). It estimates your credit score based on your credit report. It's not 100% accurate, but close. You sign up and it will send you an e-mail every month reminding you to update your score. It's free, unlike the credit scores through the credit agencies. It's a good way to get an idea of what your credit is like. And don't forget about checking your credit report for free each year, through --LinkRemoved--. I spread it out over the year by checking one every 4 months (rather than all 3 at one time).

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lostjake
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Re: can't take private loans...what do i do?

Postby lostjake » Wed Feb 24, 2010 12:28 pm

If you are married you share debt and credit, so if you take out loans your husband is also on the hook. Durrrr

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thalassocrat
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Re: can't take private loans...what do i do?

Postby thalassocrat » Wed Feb 24, 2010 12:39 pm

JPU wrote:OP, stop getting financial aid advice from a forum. You need to a call a lender who works with the school you will be attending. All GradPlus loans are through participating banks, like Chase for example. Schools will provide you with their list of lenders. I have never heard of anyone needing a cosigner. I had no credit when I applied and did not need one.


Depends on the school. Some go through participating banks and some disburse the loan themselves through the Direct Loan Program. First thing would be to see which the school does, and if they might be switching next year like my undergrad is (or so the emails they keep sending tell me).

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SwollenMonkey
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Re: can't take private loans...what do i do?

Postby SwollenMonkey » Wed Feb 24, 2010 12:42 pm

Get a different husband. I like Asian girls.

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The Zeppelin
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Re: can't take private loans...what do i do?

Postby The Zeppelin » Wed Feb 24, 2010 12:45 pm

Hope you're going to a T6.

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doinmybest
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Re: can't take private loans...what do i do?

Postby doinmybest » Wed Feb 24, 2010 5:49 pm

The Zeppelin wrote:Hope you're going to a T6.


She'd be fine at T10.

gregw8705
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Re: can't take private loans...what do i do?

Postby gregw8705 » Thu Feb 25, 2010 1:10 am

I got my grad plus loan for this year (I'm a 1L) without a cosigner and my credit kind of sucks. In fact, they initially denied my loan, but all I had to do was settle anything that had gone to collections (some 40 dollar hospital bill I never knew about) and bring my credit card payments current (but you only need to be less than 90 days late). I made the minimum payments, so I was actually over the credit limit on my credit card when they approved the loan. The standards are easy to meet. Basically:

As long as you don't have something really horrible like a loan in default, bankruptcy, etc. on your credit report you only need to meet a couple requirements:

Have no open collections against you.
Have all accounts on your credit report current or no more than 90 days late — this would be credit cards, car loans, mortgages, etc., I don't think it would include cable or cell phone bills and that sort of thing, but it might. I don't know that much about what's reported to the Equifax credit bureau who the Fed. Direct Loan program uses.

Note: this is through the Federal Direct Loan Program, I would imagine the private banks who provide these loans to non-Direct Loan schools are the same/similar in their credit requirements.

That's it. If you're an American citizen— I don't know if you can get grad plus if you're not, maybe a perm. resident alien can— you only need to meet those very low standards for the GradPlus loan (at least for Fed. Direct Loan). Many law students will be coming straight from undergrad and it will be unrealistic for most of them to have much of a credit history. The GradPlus credit requirements are intentionally low so the loan funds can be readily accessible for the type of people who will need them.




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