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Denied student loans

Rabbit777Rabbit777 Posts: 20Registered User New Member
I was just wandering if one could be denied a student loan due to not so great or bad credit? I'm looking to get a co-sign from one of my family members from whom it would be easy to get, but they have pretty bad credit. I just wanted to know if you can be denied just on that alone even though you show financial need for a student loan. TIA
Post edited by Rabbit777 on

Replies to: Denied student loans

  • swimcatsmomswimcatsmom Posts: 15,013Registered User Senior Member
    For Federal Stafford loans you do not need a cosigner. There is no credit check or income requirement for those. There are limits on what you can borrow as Stafford loans ($5500 for a freshman). If a parent applies for and is turned down for a parent plus loan you can get additional Stafford loans (@$4,000).

    If you are trying to borrow more than the maximum Stafford then you are dealing with private lenders. Private lenders can turn you down for whatever reason they want. And bad credit would be a top reason.
  • Rabbit777Rabbit777 Posts: 20Registered User New Member
    O ok i was just wandering because i am gonna be transferring out from a CC to a 4 yr uni next semester and State aid is only gonna cover a part of it. I cant apply for financial aid because I am not a US citizen or permanent resident (even though I've lived here for 18 yrs and im only 20 yrs old). So I just wanted to be sure because not having permanent residence status, I would have to get a co-sign from a permanent residence holder. Thank you.
  • swimcatsmomswimcatsmom Posts: 15,013Registered User Senior Member
    I didn't realize you were not a US citizen or eligible non citizen. I'm afraid that probably makes you ineligible for federal student loans like the Stafford (you probably realize that already). Private loans are probably your only option. You would probably need someone with a good credit rating as a cosigner to get much in the way of private loans.
  • Rabbit777Rabbit777 Posts: 20Registered User New Member
  • sueinphillysueinphilly Posts: 4,207Registered User Senior Member
    http://talk.collegeconfidential.com/1061555143-post3.html

    there is a special program for Texas residents that might apply to you.
    Check out my post from a little while back
  • Rabbit777Rabbit777 Posts: 20Registered User New Member
    yeah I know about the TASFA thats where i plan on getting some of the money from but its not gonna cover half of it though cuz imma be goin to Texas State and taht about 8k a semester or so with room and board and tuition and all. thanx anyway though
  • eucalyptus2eucalyptus2 Posts: 343Registered User Junior Member
    We received a letter from our state denying financial aid for our child for 2 reasons. 1) we made too much money last year, and 2) money is being awarded on a first come first served basis to US citizen first. If there is money left, then, to US permanent residents. We fall in the permanent resident category. Is this a common practice?
    The fact that we made too much last year was the only reason they had to give for their rejection. Why the mention of citizenship? Am I to assume that they put the applications received in two distinct piles. US citizens, and US Permanent Residents, hence, using “segregation” in the selection process, and when all of the money has been awarded to US citizens on a first come first basis, then, they look at the permanent resident’s applications?
    Is anyone received a letter like that? I am somewhat disturb by reason #2, especially that one has to apply every year for this type of financial aid. What if next year we need it? Are they telling us, with reason 2, not to bother to apply in the future. I really would appreciate a reply from someone. Perharps I am not understanding the letter properly.
  • sueinphillysueinphilly Posts: 4,207Registered User Senior Member
    can you say what state you are referring to? Maybe someone here can look at the website and see the 'policy'. Difficult to comment w/o more details
  • eucalyptus2eucalyptus2 Posts: 343Registered User Junior Member
    Tennessee. On their web page, very last sentence, it said that US citizens have priority. However, I researched other financial aid web sites, Michigan, Ohio and others, and they ALL said "US Citizens AND US Permanent Resident". I am just wondering why this state is different. Like I said in my previous e-mail, we don't qualify for it, and I totally knew that, and would not have applied, but one of the college my child applied to requested the application for financial aid. Since I received their letter last week, I phoned 3 times and left 3 messages to get an explanation, but no one returned my calls, as of yet. I know they are extremely busy, but still...
  • Rabbit777Rabbit777 Posts: 20Registered User New Member
    As far a "making to much money" goes, I don't have to really worry about that part of it considering I made about 10k, my sister made around 8k, and my dad made 32K last year. Our household is me, my sister, mom, dad, and grandmother, with me and my sister attending universities next semester. The only thing I think I really have to worry about is the Permanent resident part. Considering most people just fill out the FAFSA, do they still get state aid if they don't fill out the TASFA?
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