Is is possible to take out enough student loans year after year to cover your tuition, books, fees, food, living expenses and such? I was under the impression you could only take out so much and have to make up the rest elsewhere. Has anyone done this and do you have any pointers or tips I should know about. Planning for college in Fall '05.
Education Loans Question
- Thread starter gutharius
- Start date
There is a limit to the amount you can take out for stafford loans (subsidized and unsubsidized). Beyond that, there are more than likely many private corporations that would give you additional loans to cover whatever other expenses you had.
So in a word, yes, I'd imagine it's possible to use loans to pay for all of your living expenses while at school. They would be a pain to pay back afterwards, though; definitely look into consolidation.
So in a word, yes, I'd imagine it's possible to use loans to pay for all of your living expenses while at school. They would be a pain to pay back afterwards, though; definitely look into consolidation.
Yeah I know about the consolidation, tho I had not thought about corporate lending so thank you for that perspective.
What if you have a credit score of 780, but not a solid work history? Will they give you a private loan?
Places like Sallie Mae and other private loan companies will approve loans based on credit score alone, but it has to be an excellent credit score, like 700+.
I am currently a grad student living off of loans also....and like a previous poster said, be sure to consolidate after graduation or the bills will hit hard.
I am currently a grad student living off of loans also....and like a previous poster said, be sure to consolidate after graduation or the bills will hit hard.
If you take out educational loans through a private corporation do you have to pay for those while in college or can you defer the expenses until you graduate?
Are there private loans that are need based and not based on credit?
Are there private loans that are need based and not based on credit?
everything is based on credit. go to salliemae.com and look for authorized banks. They each have their own policy for private loans but you will need credit or a co-signer.
You don't really need credit, you just need $15,000 income.
You pay when you graduate. Watch out, some make you pay the interest while in school.
I have a 780 credit score, but I do not qualify because I have no job history ... I need a co-signer.
If you make $15,000 a year you are fine. Just make sure it has been that way for 1-2 years and you've had a stable job.
If you don't have credit just get your parents or your girlfriend to cosign.
If you make $15,000 a year you are fine. Just make sure it has been that way for 1-2 years and you've had a stable job.
If you don't have credit just get your parents or your girlfriend to cosign.
loans are fun! on a side note, anyone have any recomendations on private loan cosolidation? I may or may not because it's only two loans, from the same bank. I can't get a fixed rate on it like federal loans anyway (unless someone wants to shed me some light)
dullard
Elite Member
- May 21, 2001
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Answers all your questions Note: the .org is important, don't go to the .com FAFSA site.
[*]Federal loans to you:
They add up the expected cost for a student at your college/university and subtract off what they expect you to be able to pay and loan the rest. They add up the typical tuition + fees + books + room + board + living costs and subtract off your income + scholarships + savings + expected parents portion. This will be more than enough loan money for the majority of students. However, there are limits of how much you borrow ($23,000 limit for an undergraduate student). Since the average student graduates with less than $17,000 in debt, the limit isn't of concern for most students. Interest rates are currently 2.7% if you have to pay interest while in school (many do not), and 3.3% after you graduate. Interest is fixed for a year, but varies once a year.
[*]Loans from your school to you: (Perkins loans)
These are for the very needy. It is capped at $4,000 a year. Interest rates are fixed at 5% forever. If you qualify for a Perkins loan, your Federal loan limit is also bumped up by $5000.
[*]Federal loans to your parents for your education:
I think these are unlimited in dollar amount. They are roughly 4.1% currently, but are variable and will go up. I don't know much about them.
[*]Private loans:
No limits if you qualify at a bank. Interest rates will likely be higher than any of the options above.
My biggest tip: go to a school that has your major and that doesn't charge an arm and a leg. Then work your butt off and you'll learn so much more than students who paid $50,000 a year for school.
[*]Federal loans to you:
They add up the expected cost for a student at your college/university and subtract off what they expect you to be able to pay and loan the rest. They add up the typical tuition + fees + books + room + board + living costs and subtract off your income + scholarships + savings + expected parents portion. This will be more than enough loan money for the majority of students. However, there are limits of how much you borrow ($23,000 limit for an undergraduate student). Since the average student graduates with less than $17,000 in debt, the limit isn't of concern for most students. Interest rates are currently 2.7% if you have to pay interest while in school (many do not), and 3.3% after you graduate. Interest is fixed for a year, but varies once a year.
[*]Loans from your school to you: (Perkins loans)
These are for the very needy. It is capped at $4,000 a year. Interest rates are fixed at 5% forever. If you qualify for a Perkins loan, your Federal loan limit is also bumped up by $5000.
[*]Federal loans to your parents for your education:
I think these are unlimited in dollar amount. They are roughly 4.1% currently, but are variable and will go up. I don't know much about them.
[*]Private loans:
No limits if you qualify at a bank. Interest rates will likely be higher than any of the options above.
My biggest tip: go to a school that has your major and that doesn't charge an arm and a leg. Then work your butt off and you'll learn so much more than students who paid $50,000 a year for school.
Dug this up on the US dept od Educ.'s intarweb site:
Generally, the total debt you can have outstanding from all Stafford Loans combined is
$23,000 as a dependent undergraduate student.
$46,000 as an independent undergraduate student (only $23,000 of this amount may be in subsidized loans).
$138,500 as a graduate or professional student (only $65,500 of this amount may be in subsidized loans). The graduate debt limit includes any Stafford Loans received for undergraduate study.
Generally, the total debt you can have outstanding from all Stafford Loans combined is
$23,000 as a dependent undergraduate student.
$46,000 as an independent undergraduate student (only $23,000 of this amount may be in subsidized loans).
$138,500 as a graduate or professional student (only $65,500 of this amount may be in subsidized loans). The graduate debt limit includes any Stafford Loans received for undergraduate study.
So lets say for the last 2 years I have made 27000/yr and have a crappy credit score. I should be able to take out private loans for the next 4 or 5 years to cover expenses the stafford and perkins loans do not cover. Is this correct? Oh, BTW I am not planning to have a job, except for summer jobs, while I am at school. Would this be a problem?
Ya know, I received some offer letters from them. They were really decent and nice to work with as well. I didn't consolidate with them as I am a person who likes established routine.
dullard
Elite Member
- May 21, 2001
- 26,200
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With crappy credit, it can always be a problem to get a private loan. Too low of a credit score and you'll find very few companies willing to risk loaning you money. If this is the case, I highly encourage you to rethink things.
For example, do you really need to have more than $23,000 in student loans? $23,000 will cover room, board, and tuition at several state colleges for your full college carreer. You do NOT need to go to a school that costs $23,000 per semeseter or per year.
What about grants and scholarships? Do you have what it takes to get any?
i believe you also have to watch out when you consolidate your educations loans after you're done with school... i think you're only allowed to consolidate once IIRC, so shop around before consolidating.
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