cosigning a loan (please answer soon)

Paying for College
1

<p>I’m in a very …unfortunate situation right now.</p>

<p>My family has a lower-middle class income but my parents have very bad credit. I was planning to pay for college by myself with a loan. </p>

<p>First question: Is it likely that I can get a loan approved? When should I apply for one? (I’m going into my first year of college.) Would getting a job increase my chances of getting an approved loan?</p>

<p>Okay, so I ask my one of my parents to cosign. They are the only ones I can really ask to cosign a loan because all my other relatives do not have great credit either or they are too distant. Again, my parents have bad credit; I asked my mom about this and she said if we did get a loan approved after one of my parents would cosign for it, the interest would be very high. </p>

<p>What is a high interest rate (for student loans and regular loans)?</p>

<p>Also, is it likely I would get a loan approved if one of my parents, both of which have bad credit, cosigned for it?</p>

<p>ALSO, are there other ways of paying for it besides a loan? I nor my family has many assets.</p>

<p>Time is running out for me! So please reply soon! Thank you</p>

2

<p>Have you applied for financial aid at your school? Even if you do not qualify for need based aid you can qualify for a Stafford loan as long as you file FAFSA. The maximum for a freshman is $3500. Also if your parents apply for a parent plus loan and are turned down you will qualify for an additional Stafford loan of $4000. If you have not looked into this then try that first. That would give you $7500 which is a start. For a Stafford loan the interest rate is 6.8% which is probably better than you will find from a private lender. Stafford loans are in the student’s name. They do not require a cosigner or a credit check.</p>

<p>For private loans the co signor does have to have a good credit rating. The lender will check your credit rating and that of the co signer because if you do not pay the loan then the cosigner has to pay it. If a loan is approved with a bad credit rating the interest rate may be high.</p>

<p>Finaid.org has information about student loans here
[FinAid</a> | Student Loans](<a href=“http://www.finaid.org/loans/]FinAid”>http://www.finaid.org/loans/)</p>