Quick question about loans....during 13

[DOA]

Ok, my daughter is in college, and we had an account in her name that has paid for 3 out of the 4 years of school. But the money has run out. So she went to see about financial aide. They told her that if we were declined for approval for loans that she would qualify for aide to finish her last year. Well suprise, suprise, 6 banks APPROVED US!!!! How can that be? So now she doesn't qualify for ANY Aide because we make too much, even though we are in BK. So she applied to Sally Mae on her own, but because she is under 24 years old she HAS to have a co-signor. Sally Mae of course wants us to sign on the dotted line, but I don't think we can legally, being in BK. While it breaks my heart that my daughter can't finish out her nursing degree if we don't sign, we can't jeporadize our BK and have it dismissed. So if you have any information as to what the statutes are on this type of thing please chime in.

Ed

[$$only4ever]

Did you apply for a Federal Parent/Plus Loan and were approved? That surprises me because it is credit driven. If it was not a Federal Parent/Plus Loan that you were approved for, apply for that. When you are denied, then your daughter will be eligible for financial aide. Also, have your daughter look into Unsubsidized Federal Stafford Loans. I think that everyone is eligible for that type of student loan. Hope this helps.

[gamom02]

With our 13 we were advised that we could not take on any new debt. I have heard of people getting approval from the trustee, but its best to check with your attorney first.

My son is in this third year of college and he receives the Stafford loan where the payment is deferred until he graduates. We did not have to co-sign at all. This is strictly in his name not ours.

Good luck.

[DOA]

Did you apply for a Federal Parent/Plus Loan and were approved? That surprises me because it is credit driven. If it was not a Federal Parent/Plus Loan that you were approved for, apply for that.

Yes, it was the Federal Parent Plus loan. And I know she applied for stafford loan, but they would only go $4000 out of the $17000 she needs for this year.

[cso5@]

If I had to do it all over again....

I am here, bankrupt, with nearly $70K (my, that hurts just to type that) in student loans. Probably half that, a little more, maybe, is original principal.

And if I had to do it all over again, I would do whatever I could do not to take out one cent of student loans.

You mortgage your future. Interest and stuff adds up. Deferments, etc -- like tax debt, the interest keeps adding up.

Financial aid offices make it seem so easy -- the payment will be low, the interest is TAX DEDUCTIBLE! Sheesh, you are silly not to take advantage of that. And, like a car payment, EVERYONE has a student loan payment. That's what they tell you.

I'd go part time. I'd do pay as you go. I'd transfer to a cheaper state school. I'd find a company to work for that will pay for my education -- my current company offers such a reimbursement plan. If I had to do it over again.

Student loans are the biggest regret of my life.

Sure, I have a good job -- but nobody tells you that when you have this good job, you have to pay for a whole lot of stuff! A place to live. Car. Insurance. Utilities. AND a student loan payment on top of all that. Defer it? Sure. But keep racking up that interest......And it all comes due some day, anyway.

Just my $0.02 worth.

[CityGirl]

I got $7500 for this year which is the max for undergrad, so I don't understand why she would only get $4,000. She needs to check into that. I know it's more for certain degrees too.

Yes, it was the Federal Parent Plus loan. And I know she applied for stafford loan, but they would only go $4000 out of the $17000 she needs for this year.

[lrprn]

Hi DOA - good to see you! It's been awhile.

We ran into the same thing with our daughter. We went into Ch 13 a few months before she was finishing her last year of school. The financial aid folks said that FAFSA is not set up to recognize bankruptcy - only parent income - and that's the likely reason you were approved. Apparently the govt student loan division hasn't figured out yet how to check for bankruptcy....tsk tsk....

Once she knew we couldn't help her, our daughter applied for Stafford loans on her own without us (she was over 21) and was approved. She got just enough money to pay her tuition, and she worked part-time to pay for her books and other school costs. (And CSO5, this is the first and only student loan she has. She felt strongly after watching us struggle with our finances for years that she didn't want any part of the credit game. She's been out of school a year and has already paid off more than half the loan )

[JollyGG]

I know I got independendent student loans my senior year and I was only 21 or 22. Mabey she needs to try a different lender. She also needs to check and be absolutely certain she doesn't qualify for any other federal loans before she looks into private loans.

The great thing about nursing is you can get your degree in so many steps. You can work as a CNA why you work on your LPN, then go on to your RN, then your BSN. So if it turns out that now is not the time to finish out this degree she should still be able to find a job. It was a couple of years ago when I worked as an aid but I remember hospitals being so short staffed that some had really good signing bonuses, some would play for school with a certain work commitment, and almost all had tuition reimbursment programs.

I to a certain extend agree with cso5@. Now I don't think all student loans are evil. I have some I am paying on. However she needs to be very careful of private loans and she needs to be sure she is taking out the minimum possible of any tipe of loan. Will this be the first year she will have loans? If she does take out private loans she needs to make getting those done as soon as possible her first priority.

[rrockinggramma]

actually the college she attends probably only works with sallie mae and not with the federal direct loan program. These loans are 2 different breeds of cats with different criteria. However that being said, because you were approved for the PLUS loan, she can't get it on her own? so that puts you in a bind. I would contact your lawyer and get his take on the situation. I am surprised you were approved also because I was denied in less than 24 hours. LOLOL But then I was with Direct Loan PLUS program, not the sallie mae one. And sallie mae only works at some schools not all. Soo that being said, my son went also to a school costing upwards of 17,000. He also was tapped out as to the limit he could borrow on the Stafford Loan (they cap it for undergrads) and so he went to the financial aid office. Now his school was great. They let him attend on a defferred payment plan, made in monthly installments and then HELD his diploma til he paid it off. It took him 1 year to get that off his back but he did it. But some schools do have monthly plans that you can finance. Your only other option would be to have her try a private loan like the PLATO education loan but you really need to watch those. there is no checks and balance on them like there is with the federal government and the interest rate can be variable. Those too are a whole nother ball game, but if she wants to get done, might be her only option at this point. Tell her to trot back to financial aid office and beg for help. Good luck!

[DOA]

The Federal direct loans are what WE were approved for somehow. Sallie Mae is the student loan of choice due to all the scammers out there. If you know of a loan program, strictly for the student, outside of federal, which is reputable I will gladly pass it on. As for her needing a co-sign, I was told that it is kinda new, and now they reqire anyone under the age of 24 to have one. Guess they had a lot of defaults. ANyway, I have a phone appointment with my attorney tomorrow, so I'll get her take on the matter then. Thanks for all the input.

[arkienurse]

The Federal direct loans are what WE were approved for somehow. Sallie Mae is the student loan of choice due to all the scammers out there. If you know of a loan program, strictly for the student, outside of federal, which is reputable I will gladly pass it on. As for her needing a co-sign, I was told that it is kinda new, and now they reqire anyone under the age of 24 to have one. Guess they had a lot of defaults. ANyway, I have a phone appointment with my attorney tomorrow, so I'll get her take on the matter then. Thanks for all the input.

You are saying she needs a cosigner on the federal student loan? Must be very new. DS started last year, and has a loan this year also. We have not had to cosign for him.

[rrockinggramma]

My son needed a co signer also and that was back in 2001,02 etc. I couldn't do it at the time, and their Dad was tapped out also, so my mother graciously cosigned for my son. Perhaps you have someone that would be willing to cosign in your place. Although we all know down the road the problems that can lead to (co signing for someone else) but in this case, might be the best route to take. She probably needs a co signer cause your credit is iffy and they just didn't want to say it that way so said everyone needs a cosigner.

[DOA]

You are saying she needs a cosigner on the federal student loan? Must be very new. DS started last year, and has a loan this year also. We have not had to cosign for him.

No, ACTUAL federal Stafford loan she signed for. On the federal plus loans if your parents are approved for STANDARD student loans through banks you are ineligble for student aide, more federal loans and grants, and only eligble for federal on their own if they can prove self support for 12 months. Because she is lazy and wouldn't get a job she has no income or credit history at 20, and they will NOT give her a loan without a co-sign. All this is coming from the financial aide dept at her school, and they know we are in BK.

[rrockinggramma]

ok I am confused. The PLUS loan was put in place as a way to come up with the difference between what the stafford loans, and any other grants and parental help, and the actual cost of the college to attend. So I thought that the PLUS loan would provide the remaining 13,000 she would need and that you only need a cosigner to get it done? Or am I missing something here? I have been out of education for 4 years but used to do financial aid for seniors in high school on their way to college so I am sure that some things have changed in 4 years but the basis of the PLUS loan was to fill in the gap. Is that no longer available?

[DOA]

So I thought that the PLUS loan would provide the remaining 13,000 she would need and that you only need a cosigner to get it done? Or am I missing something here?

Nope, no confusion at all, she does need the co-signor, and we can't. So she is out luck unles my wifes parents want to co-sign, as my father is retired and on a fixed income with crap credit due to letting things go when my mom passed a couple of years ago.