What are Financial Options for my situation so I dont have to drop out?

Paying for College
1

Hello,

I have been put into a serious bind and I don’t know how to get out of the situation I am in, my education is on the line at this point.

I am double majoring and I am in my last 2 years of of studies.
I have never taken a big loan out and I I have been able to remain debt free up till how.
Next year, I will need about $37,000 to complete my education and I am in need of loans. I have applied to FAFSA and I know how i much I will have for this year and next.

I have about $7500 saved up which I will use solely for my education; however, even after FAFSA I will need about $20,000 in loans from banks. However, I don’t know if I need a cosigner or not.
-I have had a card for 4 years and I have consistently used it
-paid it off the next month, always paid more than minimum, and ensured that I would not have any outstanding debt.
-I have made about $8000 from internships and never had a loan (so debt vs income ratio should be good)
-credit score is for sure over 700.

I have talked to the financial adviser at my university and she has stated that I should talk to the bank first before taking fafsa. If I take fafsa first, then I will have to show that I accruing debt on my social and hurt my chances of getting loan from the banks.

Am I a strong candidate for a loan without a cosigner? I really dont want to have to drop out being so close toward the end of my education.

2

No student without a full time job is a strong candidate for a bank loan with no security (a car loan is different).

When you apply for a loan, they will look at your credit history, repayment history and that looks good. However, the biggest factor is still going to be loan to income ratio. Not the past loan to income, but what it will be if you want to take out this loan. If you want to borrow $20,000, they are going to want to know how you will pay it back. If you don’t have current income, that’s not good.

All you can do is apply and see. Try several different loans - Sallie Mae, Discover, Wells Fargo. Would your parents qualify for a Plus loan? If they apply and don’t qualify, you could borrow $4-5k more as a Student loan. Does your school have Perkins Loans? They may approve you for those ($5k) for each of the next two years.

3

Why do you all of a sudden need $37K for your last two years?

4

Were you offered subsidized loans in your current and previous years?

5

To be clear, you’re talking about grad school, right?

6

Well…if it’s grad school, that easy. The student can take out a grad plus loan I her name only for the full cost of attendance.

I thought it was undergrad!

To the OP. It doesn’t matter whether you do the FAFSA first or do private loans first. The FAFSA will get you $7500 loan for your junior year of college. No cosigner.

You will need a cosigner for private loans.

But yes…what is making these last two years more costly?

7

Please clarify this statement!

8

@Madison85 I am no longer living at home. So average yearly is about $18k
I can’t live in the dorms either because of the 2 year policy.

After your sophomore year, they no longer want you staying on campus

9

@Madison85 no I was not offered subsidized.

10

@sylvan8798 no, I am still an undergrad. which is why dropping out seems more likely to me

11

So were you offered subsidized federal loans after filing FAFSA for your current and prior years? You are an undergrad? Are you a U.S. citizen? What was your first year of college?

12

@Californiadriven

Please clarify. Are you talking about getting loans for the last years of undergrad…or are you talking about getting loans for grad school?

Your other threads make it sound like you are looking at MBA programs now.

13

How did you pay for your first years of college? Why do you suddenly need $37k? So no subsidized loans were offered because your FAFSA EFC is higher than the cost of attendance?

Can your parents afford to help you pay for the last two years but won’t?

14

EFC just has to not indicate unmet financial need at that college to get the subsidized loan. So if this student had a scholarship or grant that brought their need to a very low level, all direct loans would be unsubsidized.

The OP wrote this:

this makes it sound like the OP is currently an undergrad last year student who plans to get a job of some sort (which is a good idea if one wants to get a MBA) and then apply to GRAD school at Booth or someplace.

So…if grad school is what this question is about…

  1. There are no subsidized loans for grad school. But the student can take out Grad Plus loans up to the cost of attendance for grad school.
  2. If employed, this poster may find that the company for which they work may fund or partially fund grad school. if it were me, I would be looking for a job with this benefit especially if finances are a significant issue.
15

@Madison85 They are choosing now to help. They have other things they are pursuing and choosing how to help me. They over extended their credit as well so the bank said no to their ability to support.

16

@Madison85 I was offered $7500 unsubsided that is available until next April
my first year of college was in 2012; however, I have a college fund saved up.
That is almost used up.

I am a US citizen and I am not able to do find any source of income either because I am taking 2 lab classes, 3 engineering, and 1 language course (19 units).

17

@thumper1 it is my last 2 years as an undergraduate.

18

@“Erin’s Dad” My parents are not supporting me in any way. in order me to complete my education in fastest manner, I need to gather up $37,000 in order to complete within the next year to year-and-half.

19

how many years have you been an undergrad?

20

@thumper1 4
I have graduated from my honors, been awarded Tau Beta Pi, made multiple deans list, etc
I Just turned 22.

This is the first and only loan I am going to try to take from a bank. It has put me in a serious situation where I am struggling to even find other options.