Private Loans Direct to Student?

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JerichoJohnny
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Joined: Sat Dec 03, 2011 7:28 pm

Private Loans Direct to Student?

Postby JerichoJohnny » Wed Mar 13, 2013 4:04 pm

This kind of ties into the post that OscarVeal posted, but I thought I would make my own topic.

I am a current student at a Tier 1 law school. I am wondering what any of you know about supplemental private loans that can be paid directly to the student.

I budgeted poorly this year, both due to my rental cost being too high (and planning on a greater contribution from my partner than was possible) and also because I did not account for an extra class being required of me during one of my semesters.

In any case, I am looking at a serious budget shortfall, and can expect to be in serious trouble about 3 months before next year's money will be coming in. Obviously the issue of going to law school at all, and certainly taking out even MORE money are serious issues. As it is, my principal question are about the private loans that are marketed towards law students.

I have examined several lenders, including Discover and Wells Fargo. Both seem to figure in the COA (I have already borrowed the max in federal loans) and also supply the money directly to the school. My first impression is that this type of private loan would not work for me. I have an "ok" credit score with almost 15 years of solid credit history. If I was employed I should think I would have no problem securing some sort of loan, but as a student with no credit-worthy cosigner, I think I will run into some problems.

What sort of loan would work for me in this situation? Is there a private lender that can cut me a check and whose interest rate will be closer to the prime rate than say, a company like WesternSky ("Yes it's expensive, but you need it!") would offer?

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cinephile
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Re: Private Loans Direct to Student?

Postby cinephile » Wed Mar 13, 2013 4:41 pm

Take a summer class and borrow for COL for the summer.

Private loans area terrible idea.

JerichoJohnny
Posts: 106
Joined: Sat Dec 03, 2011 7:28 pm

Re: Private Loans Direct to Student?

Postby JerichoJohnny » Wed Mar 13, 2013 5:35 pm

Take a summer class and borrow for COL for the summer.

Private loans area terrible idea.


I completely agree about the private loans. Something I would like to avoid if possible.

That's not a bad idea. I had not thought of that honestly. And if I land a summer position of any sort (and I have not yet, so who knows) it will almost certainly be in the same city as the university.

When would I be able to apply / receive that financial aid?

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cinephile
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Re: Private Loans Direct to Student?

Postby cinephile » Wed Mar 13, 2013 5:53 pm

I'd ask people at your school's clinical program (I assume you're a 1L and what you do this summer isn't a big deal) if there's a clinic you can take over the summer. And then you might need to process financial aid forms now. But it wouldn't be dispersed until the beginning of the summer term.

Or you could look into being a RA this summer and getting paid.

Or you could do what a lot of people I know did - volunteer like 20 hours a week at a public interest organization and then work the rest of the week doing anything else - lifeguarding, bar tending, etc.

Or you could start working part-time now, up to 20 hours a week, if you really need the money. A lot of people work, even during 1L, and it's not a big deal so long as you put the time in right before exams. Maybe quit your job, ask for a few weeks off, to study right before finals.

JerichoJohnny
Posts: 106
Joined: Sat Dec 03, 2011 7:28 pm

Re: Private Loans Direct to Student?

Postby JerichoJohnny » Thu Mar 14, 2013 3:18 pm

Yes, I am a 1L.

Since I'm renting a house I don't know how I could be an RA.

The other ideas are also all solid. I have also gone an ahead and put in an application for a plus loan for summer classes. As you all know, there is a minimum of 6 hours to qualify for such funds, but will the school / government likely loan COL funds in addition to the tuition when you've asked for the max?

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A. Nony Mouse
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Re: Private Loans Direct to Student?

Postby A. Nony Mouse » Thu Mar 14, 2013 3:20 pm

JerichoJohnny wrote:Yes, I am a 1L.

Since I'm renting a house I don't know how I could be an RA.

The other ideas are also all solid. I have also gone an ahead and put in an application for a plus loan for summer classes. As you all know, there is a minimum of 6 hours to qualify for such funds, but will the school / government likely loan COL funds in addition to the tuition when you've asked for the max?

RA = research assistant, not resident assistant.

JerichoJohnny
Posts: 106
Joined: Sat Dec 03, 2011 7:28 pm

Re: Private Loans Direct to Student?

Postby JerichoJohnny » Thu Mar 14, 2013 3:29 pm

RA = research assistant, not resident assistant.


Oh, right. That makes a lot more sense. :oops:




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