Jump to content

Menu

Student loan questions....hhheeeelllllppppp!


Susann
 Share

Recommended Posts

My first is going off to college-OK, cue the tears:crying: which is all I've been doing lately! DD has been very blessed to have everything covered except for about $7,000.00 for her freshman year. We're considering letting her take out a loan to cover this amount instead of us paying for it for various reasons. Her degree will be in computer engineering from Rose-Hulman Institute so finding a job when she's done isn't really a concern. Any suggestions on making this decision? If we choose to do a loan, things to consider, look out for? I've been doing a lot of research but I'd like suggestions from those that have BTDT:)

Edited by Susann
Link to comment
Share on other sites

We took out a home-equity line of credit, b/c the rate was much better than the student loan (unsecured was all we could get). Have you looked into that?

Ds can't take out a student loan as he has absolutely no credit history. He has a job, but it is only for the summer.

Link to comment
Share on other sites

We're wanting to stay away from a home-equity because we're going to refi in a couple of months to knock time off our mortgage. Boy, there are so many details I feel like I'm:willy_nilly: Thank goodness it'll end soon! Thanks for the idea though-any other BTDT suggestions?

Link to comment
Share on other sites

Look into her getting a Government Direct Loan (used to be the Stafford Loan). As a freshman, she can get a loan for up to $5,500. Some of it could be subsidized depending on the school's criteria. If any is subsidized, then interest does not accrue during the time she is in school. Then you can possibly cover the last $1,500 yourselves with your own bank or credit union loan. The value is that the loan will be in her name, not yours, so it won't show up as your debt like a regular loan would, and the interest rate is usually lower than bank loans. Next year she could borrow up to $6,500, and as a junior and senior she can borrow up to $7,500, should she need additional money in future years. She needs to talk to the college about this and they will give her the website to apply. You need to file the FAFSA before she can apply. She will qualify.

 

Your other option is to have her get a bank or credit union student loan and you will have to cosign, making it really your loan, and it will appear as your debt.

 

If she does get a loan that is not subsidized, be sure she tries to pay the interest quarterly if at all possible. It does not have to be paid while she is in school, but it will capitalize and she could end up owing thousands more than she originally borrowed if she doesn't make interest payments. No payments have to be made until she graduates or quits school, though.

Edited by Photo Ninja
Link to comment
Share on other sites

Thanks, Photo Ninja! She is eligible for Stafford-sub for 3,500 and Stafford-unsub for 2,000. We're looking/comparing rates/terms for the remander. I think I'm just making more out of this than I need to because the whole college process seems to have gone on sooooooo long:001_smile:

Link to comment
Share on other sites

Subsidized loans are much better because interest does not accrue while the student is in school. However, I think they are also harder to get.

 

I do not have co-signers on my loans, but I have many friends who have their parents as co-signers. So if you are willing to co-sign then your child may be able to get a loan where they would not be able to do so otherwise, from what I understand.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...