Student Loans, Oh Boy

ANTVGM64

Howdy there, just had a quick student loan / parent related question.

I've been in the process of attempting to apply for student loans for the past few weeks now, having finally gotten my award letter after sending it to the wrong college.

Type of Aid FA2009 SP2010 Total

Fed Sub Stafford Loan 2,750.00 2,750.00 5,500.00
Fed Unsub Stafford Loan 1,000.00 1,000.00 2,000.00
Federal PLUS Loan 15,539.00 15,539.00 31,078.00

Total Awarded Funds 19,289.00 19,289.00 38,578.00

The Cost of attendance for my school is about 30 thousand dollars, and I'm already one year in. I would graduate in September of 2010 if all goes according to plan.

Here's the thing, for the prior year my parents pretty much refused to help me PAY for anything loan wise. They didn't want to cosign the plus loan, or private loan, and so on, putting the entirety of the cost of school on me.

which is fine, I went with Chase student loans and was approved based on how much Money I made, and got a loan for 34 thousand dollars, which covered tuition, books, and living in a dorm.

I apply again to chase for a second private loan for this coming year, and am rejected, despite making about as much money, and asking for less money, since I wouldn't be living on campus.

I try a couple of other places, and they all want cosigners.

My parents really don't want to cosign, being it's very possible one or both of them could lose their jobs, and it's a fuck ton of money.

So, I guess my question is, what are my options? I'm not very close with any of my other relatives, and am feeling a little slighted.

Also, is this the default thing most parents do when it comes to loans? Do MOST parents willingly cosign these things and my parents are being stubborn, or is there an option I'm missing.

Other notes:

I make about 22 thousand dollars a year gross

my mother makes about 40 or so

my dad is about half that

matt has a problem

My parents wouldn't cosign a loan for me, and at the time a year only cost $3600 (state school).

Are you saying your school costs $30k a semester? Or a year? Because that looks like you got awarded 19,289 per semester, with a total payout of 38,578 per year.

ANTVGM64

It's 30k a year, but that big loan for most of it requires a co signer.

matt has a problem

Ah, so that's not your actual award letter then, that's just the amount they're willing to give you with a cosigner?

Also, I'm guessing Chase won't give you another loan because your debt to income ratio is completely opposite of what it was last time. You went in the first time with $22k a year in salary and no debt, now you've got $34k in debt and the same salary. When you start paying it off, every $30k = ~$300 a month in payments.

ANTVGM64

See I asked them that upon getting the first loan and they told me in the bank that they expected that and take it into account.

Of course I was opening a bank account at the time so he maybe just didn't want me to leave and go to another bank.

Tomanta

ANTVGM64 wrote: »

See I asked them that upon getting the first loan and they told me in the bank that they expected that and take it into account.

Of course I was opening a bank account at the time so he maybe just didn't want me to leave and go to another bank.

Banks have found themselves in a slightly different situation this year than they were last year, as well.

Unfortunately, I can't think of any options. Stafford loans are capped at a certain amount (partially depending on what 'year' you are). I am guessing from the award letter that you are not eligible for any grants. Sounds like you really need that PLUS loan but if you parents have legitimate concerns on signing it, not sure what to tell you, short of scouring every nook and cranny of the financial aid kingdom for scholarships.

supabeast

As others have noted, banks are no longer able to throw people piles of money to pay for exploding tuition costs. I really don’t think you have any options here; you may have to take a semester off and transfer to a school you can afford. In the meanwhile, call your Congresscritters and remind them that there are a LOT of young people in your boat, and that you have no plan of voting for the incumbents who sat by and watched federal aid dry up while tuition exploded.

Penguin_Otaku

Susan is right.

Casually Hardcore

Oh god. Dont use pay day loan or cash advance or any of those legalize loan sharking scams. I would serious just be late on a payment and take the credit hit then take out a loan with with a %300+ APR.

TychoCelchuuu

Penguin_Otaku wrote: »

Susan is right.

Susan is a spam bot.

Hlubocky

Anyone paying for their own $30,000/yr tuition needs to think long and hard about how worthwhile it is to be that much in debt when they graduate and what kind of earning power they will have when they leave.

rockmonkey

With your parents income being what it is do you not qualify for some grants or scholarships. It might help put a small dent in the cost.


At 30k/yr you should have considered how you were going to pay for four years of college, you know, BEFORE you were a year into school/debt. You have no academic/performance/athletic scholarships? no savings for college? and not the personal income to cover it? Might look into transfering to someplace where getting a bachelors won't put you into 6 figure debt.