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Advice from the wise ones on my first student loan

Date: Thu, 01/25/2007 - 20:57

Submitted by infinitytimes82
on Thu, 01/25/2007 - 20:57

Posts: 15 Credits: [Donate]

Total Replies: 11

Advice from the wise ones on my first student loan


Anyone have some advice on the best way to go about getting my first student loan? I would like to take out a loan for about $5,000 to finish my schooling, and I'm curious if I'll be able to manage it okay on my own.

My previous credit history is fine, and I'm trying to decide on the best option as far as interest and time go, but I'd like to hear the opinions of people who have gone through it to make sure I do things the best way I can... I already owe my parents about $9,000 that I have to pay back when I graduate, so this is starting to worry me.

I'm just nervous I'll get in too deep, and I want to implement some preventative maintenance based on the advice of people who know what they're talking about! (That's you! :D )

Thanks in advance for the advice...


Lenders will look into your credit history and evaluate if you will be able to meet their credit criteria. A verifiable income will be good for you so that you are able to repay the loan while keeping your other debts in mind.

In case you are not able to meet the lender????????s criteria, consider applying with creditworthy co-signer(s). They can enhance your ability to qualify for the loan and offer the best interest rate terms. Normally, the adjusted rate will be 8.25%, plus a margin depending upon your credit history.


lrhall41

Submitted by Bridget on Fri, 01/26/2007 - 09:06

( Posts: 348 | Credits: )


Thanks Bridget! I'm curious about something related to lenders looking into my credit history. I have a credit card with about $700.00 from Christmas gifts right now, and I'm gradually paying it off, even though it has a 0% apr until December, 2007.

If I try to take out a loan for school now, will the lenders take this current debt into account? I do have a verifiable income, but I don't make enough to pay them back NOW. Is that what they are looking for, or are they more concerned with the long term so they make their interest?

Once again, thank you for your help!


lrhall41

Submitted by infinitytimes82 on Wed, 01/31/2007 - 20:52

( Posts: 15 | Credits: )


Hi infinity, shop with different companies for the interest rates that they have to offer. This way, you will figure out if your past debts are any reasons of worries to the future lenders. Since these people are the ones to extend credit, you have to convince them regular payments in the future so that they don't see you as risk to their finance.


lrhall41

Submitted by ricjil on Thu, 02/01/2007 - 09:40

( Posts: 225 | Credits: )


That seems reasonable to me! I am starting to make a regular income online now. I also recently picked up a part-time under the table job baby sitting. Would I be able to "report" these sources for them to consider in my loan process?

The amount I am making online and baby sitting will soon be working nicely to give me spending money and pay off my credit card, but I will need a loan for school since my parents split up.

Anyway, what I'm getting at is whether or not I should try to hold off on the loan until I have paid off my credit card, or if it will probably be okay if I can show the path I am taking to pay it off...Thanks again for your help guys!


lrhall41

Submitted by infinitytimes82 on Sun, 02/04/2007 - 20:44

( Posts: 15 | Credits: )


You should meet with the Financial Aid counselor at the school you plan to attend, they will help you complete the Federal Student Aid application which will also include guaranteed federal student loan application. With federal student loans the repayment begins six months after you graduate school.


lrhall41

Submitted by WHEREAMI? on Sun, 02/04/2007 - 20:54

( Posts: 5263 | Credits: )


Oh, I didn't know it started 6 months after...that's awesome! Yeah, I'll check with my advisor about that.

Also, my Mom mentioned AAA providing loans that start accruing interest after I graduate. Has anyone tried this, or know anything about it?


lrhall41

Submitted by infinitytimes82 on Tue, 02/06/2007 - 09:04

( Posts: 15 | Credits: )


You can log into FAFSA - Free Application for Federal Student Aid http://www.fafsa.ed.gov/.

You probably will want to read http://www.finaid.org/

Basic stafford loans from the government are not credit based and have very low rates of interest. By filling out a FAFSA, it will determine what you are eligible for based on you and your families income if you are under uge 23.


lrhall41

Submitted by SOAPLADY on Thu, 02/08/2007 - 14:07

( Posts: 17315 | Credits: )


Thanks SoapLady! My parents just split up, and I think I would still have to report their combined income since it's for 2006, right? If so, then I'll probably have to wait until 2008 so I can just report one of them from 2007's income. Otherwise, our Expected Family Contribution is too high to get any assistance. (That's completely ridiculous, though, because they said our EFC was $27,000 from 2005, and they could afford about $3,000 stretching it...But, what can you do??)

Anyway, thanks for the help, and http://finaid.org will help, too! Take care...


lrhall41

Submitted by infinitytimes82 on Fri, 02/09/2007 - 06:48

( Posts: 15 | Credits: )


Advice taken! I'll have my Mom look into PLUS loans, and I'm going to check into FastWeb.com to find some grants I qualify for. Thanks a million...


lrhall41

Submitted by infinitytimes82 on Sun, 02/11/2007 - 21:34

( Posts: 15 | Credits: )