Should a parent cosign for a private student loan? - Page 6

cptofthehouse · 06-22-2012, 09:47 PM

In cases like that, local options are the most logical choice.

momtotwins · 07-22-2012, 02:17 AM

In my opionion it is best if the student only needs the loans they can take out in their own name or better yet - no loans at all. That said, this is assuming parents can help somewhat either through savings or current income. If there is no savings for college then parent loans may be a good option to consider. Other families saved the money before the kids got to school. if your family did not, loans may be a good way to pay for college after the fact. If we hadn't saved, I would consider cosigning on loans and would try to help pay off those loans, too. I don't think it is realistic for most kids today to fund a college education on their own with no parental help.

I talked to a young lady just the other day who was struggling with her $39,000 student loan 6 years after she graduated. She is still living in her parent's home and paying $300 a month towards that loan that seems to never decrease. She wants to move out but doesn't feel she can with this loan hanging over her head. No loans are definately better but difficult to do without parents willing to help.

Elleya · 07-22-2012, 11:51 PM

Hmm, this thread could be helpful.

Mom and I had a serious talk about finances - I asked her for financial info for NPC's and we plugged in to state U, public U, and UPenn for giggles. Every school ended up being roughly 20k/yr out of pocket, except UPenn which was 14k - too bad i'm not Ivy material! UMass is so damn stingy, seriously.

Also, 17k/yr parent contribution?! My mom told me she could pay 1 year of that but "the rest is all you." So now i'm looking forward to 50k-70k in loans to take out. My mom said she would co-sign but after reading this thread I am not so sure. I'm glad that I want to major in something I can hopefully get a job in outside of college (Nursing), but the thought of those loans is keeping me up already.

mom2collegekids · 07-22-2012, 11:59 PM

^

What are your stats? Maybe they're good enough for decent merit scholarships somewhere.

you're wise to be concerned about that much in loans....it's way too much. Nurses make a good income, but not enough to support that much debt and still pay for your living expenses. That is strangling debt.

Elleya · 07-23-2012, 12:03 AM

I don't know exactly how it looks on my transcript, but I calculated for myself that I have a 3.3UW/4.3W, 1280/1940 (640/640/640). I think I get more weighting added at the start of senior year (another +.3 maybe), either way I know i'm top half. I feel like I miss all the best scholarships by thismuch. I have an upward trend, at any rate...

mom2collegekids · 07-23-2012, 12:37 AM

You need to retest this fall. Sign up for the Sept ACT and the Oct SAT...and study for them both.

You may do better on the ACT. You need the best scores possible.

Elleya · 07-23-2012, 12:44 AM

I would but my parents won't let me - I did well the first time, no guarantee I will do better the second which is a waste of money (of which they nor I really have), they say. I can't argue with that, the SAT was brutal. I would take the ACT in a heartbeat though.

BobWallace · 07-23-2012, 12:57 AM

Not at all a waste of money. Explain to your parents that increasing your CR+M SAT score by just 20 points could be all you need for a full tuition scholarship at many schools. Or take the ACT and skip the writing portion - that makes it cheaper and less grueling.

Elleya · 07-23-2012, 01:06 AM

Hm, it is cheaper. First date is Sept. 8, so I have time. I'm not familiar with the ACT, is omitting the writing section bad?

BobWallace · 07-23-2012, 01:08 AM

Few if any colleges seem to care about the ACT writing section.

Elleya · 07-23-2012, 01:18 AM

So it's like what the SAT Writing section is to colleges? Right on, I see what you're saying.

However, I have cruised those full ride threads and good merit scholarship threads, and it seems like those kinds of schools just don't exist around here!

cptofthehouse · 07-23-2012, 10:26 AM

Elleya, that you are here researching your options shows that you have a lot of gumption and a lot on the ball, as most students do not do this. Hopefully, you also have some lower cost options that are maybe local for nursing. Perhaps, for the first two years, anyways. That way your mother can stretch that $17-20k out for the latter two years and you can borrow some, too, but a lot less than for 4 years with interest accruing from the onset.

Also, IMO, taking out a private parent cosigned loan for a student in a directed path for career that is pretty sure to pay well, and when said student has shown s/he can do well in college having half of the education under the belt by going through local/community college, is truly a good investment. That I would do. For an 18 year old, right out of high school, the risk are far greater. Most, vastly most, will change direction, many will not do well even if student was high achieving in high school. But once half the 4 years have been successfully completed, and the goal is a clear one that is likely to reap financial dividiends in the form of a well paying job that is available, yes, I would take the chance on an outside private loan for the next two years.

Elleya · 07-23-2012, 12:12 PM

Mmm, I definitely see what you are saying. I'm figuring that the best way to do this would be to go to CC first and either transfer or find an RN-BSN bridge program. There is, conveniently enough, a CC down the street but I am unsure about its nursing program. It drives me nutty that CC costs 5k/yr though.

They claim that if your GPA is over 2.5 you are guaranteed admission to a public school/UMass and if it is over 3.0 you get "a 33% tuition waiver on your in-state tuition costs". I am not sure if this includes all tuition and fees but I remember that at UMass, tuition is only 1.5k/yr for in-state and I have a waiver on that for four years anyways. For transfer without a degree it covers 34 gen ed credits. I'm definitely going to have to do a lot more research before I entertain this option. My hope is that somehow I can stretch my mom's money out for a little more than a year, even 3 semesters would be a huge help, plus having work study job + another job (and working my summer job now) would make a little dent in it. Again, much more research to be done.

edit: upon closer inspection, local CC has nursing...at its other campus that's 30 minutes away. damn.

mom2collegekids · 07-23-2012, 01:13 PM

Bob...I wouldn't recommend skipping the essay portion of the ACT. Altho some schools don't really use it, they are still insisting that the students take that section. I know it doesn't make sense, but that's often the case.

Elleya...are you low income? If so, then you may qualify for test waivers and app waivers.

mom2collegekids · 07-23-2012, 01:16 PM

Bob...I wouldn't recommend skipping the essay portion of the ACT. Altho some schools don't really use it, they are still insisting that the students take that section. I know it doesn't make sense, but that's often the case.

Elleya...are you low income? If so, then you may qualify for test waivers and app waivers.

BTW...I don't think the tuition waiver and the 33% tuition waiver includes the fees. That's been a disappointment for many MA students. The fees are huge!