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Can anyone get a student loan?


candidguy
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Stafford loans do not require a credit check. You must fill out a FAFSA. However, private student loans are credit dependent.

Thanks for the answer, I'm wondering what's the highest amount of loan I could get if I have a bad credit?

Thanks.

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That's not really how this works.

For a Stafford loan, you fill out the FAFSA, they give you your Estimated Family Contribution, and forward that to your school.

Your school then tells you how much you qualify for in grants, loans, etc. through them. This will depend on how many classes you enrolled in, the cost of materials, housing, etc... Most of the time, the subsidized Stafford tops out around $3,000.

For private loans, usually you must either be employed for 12 months and plan to continue employment during your schooling (quitting does cause an immediate repayment) and will depend on the loan company's guidlines.

Have you spoken to your school's financial aid office?

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There is also the unsubsidized stafford loan option with interest capitalized (ie no payment until graduation + six months). I think the point here is that you do not have to have good credit to get loan money to go to school. And the EFC calculation is a joke. My wife and I have professional incomes and the EFC was less than half of my education cost- which meant that the lion's share of law school loans were SUBSIDIZED.

Just keep in mind that you most definitely want to complete your degree program. When you take on this debt, you have no asset other than your education and improved earning power to show for it. If you don't finish, the debt could bury you for life because you now have a huge liability with no "asset". For example: my loan payment is over $1000/month. Ouch...

Edited by jq26
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Just keep in mind that you most definitely want to complete your degree program. When you take on this debt, you have no asset other than your education and improved earning power to show for it. If you don't finish, the debt could bury you for life because you now have a huge liability with no "asset". For example: my loan payment is over $1000/month. Ouch...

Excellent advice. Also keep in mind the profession you want to go into after graduation. A friend of mine went to an expensive private school, $100,000 for four years. Her major? Education, she wanted to be a grade school teacher, not a profession known for big paychecks! Her parents paid the bulk of it so her student loans were resonable, but had she borrowed the full amount, she would have been up a creek when the payments came due.

So reserch the earning potential of your chosen field and make sure you don't take on more debt than you can reasonably pay back once you're employeed.

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I was born and raised in Ireland then attended University in London England. Not only was it free of fees but I got a a student grant from the government that was not repayable to help cover the cost of living (from memory it was around $4,000 per year). I often wonder how the heck you guys manage to get through it all. We also had the benefit of a drinking age of 18 and a subsidised Student Union bar. I barely remember my student days :p . It has changed since then but is still nowhere near as harsh as students find it in the US financially.

Edited by newryman
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I was born and raised in Ireland then attended University in London England. Not only was it free of fees but I got a a student grant from the government that was not repayable to help cover the cost of living (from memory it was around $4,000 per year). I often wonder how the heck you guys manage to get through it all. We also had the benefit of a drinking age of 18 and a subsidised Student Union bar. I barely remember my student days :p . It has changed since then but is still nowhere near as harsh as students find it in the US financially.

Depending on what you want to be when you grow up, it doesn't have to be that bad. With community colleges, you can get your first two years done for $5-$10k, then transfer your credits to a four year state school to get your four year degree (state school tuition for in-state residents is almost always the cheapest way to go). It's even cheaper yet if you happen to live close enough to a four year school that you can live at home, so you don't need to pay for a dorm.

There are also certain professions that one can choose to help pay for part or even all of your tuition. A friend of mine went to nursing school through a program at a local hospital. They paid for 100% of her schooling as long as she agreed to work for them for a certain number of years after graduation. I know that teachers can get some of their student loan tuition forgiven if they teach in certain low-income districts that have a hard time getting good teachers.

There are also tax sheltered savings accounts for parents to help save for college tax free. There are rebate programs, if you use a certain CC and buy certain products, a percentage is of the purchase is placed in a college savings account. If you sign up at your child's birth, it could add up to a few thousand dollars by age 18, enough to pay for a semester perhaps.

Just like with anything else in life, there's a cheap way to to it and an expensive way to do it. Another friend of mine went through the expensive private school route (not the friend that became a teacher, another friend of mine). She graduated with honers but chose a major that can be difficult to find employment in (economics). Her family had no money so all of her tuition went on student loans. 10 years after graduating, she isn't anywhere close to paying them off, and isn't even working due to medical problems. Had she gone to a state school, she'd likely be almost done paying them off, or at least a lot closer to it. Had she done the community college/state school combo, she'd almost certainly been done with them.

I think one of the big problems in this country is a lack of knowledge of schooling options amoung parents and high school students. Parents, especially if they didn't go to college themselves, don't know enough to guide their kids, and the kids themselves have no clue. Community college doesn't occur to them, or they think it's "high school lite", something for kids who aren't bright enough for a "real" college to learn auto mechanics or to be a secretary. They think that only a top name private school will get them a top paying job, not realizing that for most professions, the name on the diploma means next to nothing.

What I think often winds up happening is that the kid in their junior and senior years of HS pick two or three schools that they want to go to (often the same one their friends or boy/girl friend want to go to) and the parents play along, figuring they pay for as much as they can handle and have the kid take loans for the rest. No one stops and thinks that they're paying $25k a year so the kid can enter a career that tops out at $40k annually.

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