Oldest DS is starting college in the Fall. We did the FAFSA, etc. and he is eligible for a Federally subsidized Stafford Loan ($2625) his first year. We did not qualify for a Pell Grant or a Perkins Loan. After that Stafford Loan and some local scholarships, he will need to borrow about $8000 (at least for this first year) in student loans. He is 18, and has no credit history. We have a fairly POOR credit history. Where/how should he apply for student loans? A lot of what I'm reading online and in the brochures says student loans are dependent on good credit history...will he not be able to go to school just because WE have bad credit? Thanks in advance for any advice....I guess we are not *poor* enough to qualify for a lot of assistance, but not wealthy enough to pay for college, either. We can barely pay the bills we have and feed the 6 of us as it is!

By Crystal915 on Tuesday, June 20, 2006 - 08:17 pm:

Call the Financial Aid office of the school he's looking into, and ask them for guidance. My grandmom just recently got her BA, and took out quite a bit in loans, and she has HORRIBLE credit. It can be done. I think he can also get more as an independant, although I'm not sure, because then they aren't taking your income into account.

By Claire on Tuesday, June 20, 2006 - 08:48 pm:

Have you tried this?
Parent Plus Loan

By Reds9298 on Tuesday, June 20, 2006 - 08:52 pm:

Ditto Crystal. And unfortunately LOTS of people fall into this "category" of not being poor enough or too "rich" (yeah, right) to qualify for certain loans. It's really frustrating. I took out all of my loans on my own...Staffords...I think I got one subsidized (whooppee) and I had no credit at the time either. (I was 18, too.) I also went to an extension university so my loans were not as high as they could have been had I lived on campus. I also had scholarship $ to supplement that.
Good luck! I'm SURE there will not be a problem with getting student loans. Everyone I KNOW has student loans, all on their own, that they got before they even had credit. I've also heard of the loan that Claire linked to, but my parents weren't involved so we didn't need to investigate that route.

By Mrsheidi on Tuesday, June 20, 2006 - 08:57 pm:

Talk with the college counselors...they will help tremendously. They can hook you up with other loan companies that have low percentage rates and/or grants, etc. It SHOULDN'T be based on your credit history though since he's 18 and can get his own credit card by now.

By Cybermommyx4 on Tuesday, June 20, 2006 - 09:02 pm:

Thanks for your responses so far We don't want to do the Parent Plus Loan, either, as we have 4 kids and they will be taking their loans in their own names. We will help them whenever and wherever we can, but can't afford to incur any more debt If we must, we will co-sign, but, with our credit score I don't think that would be any type of help...The fincial aid office at the school has not been helpful AT ALL. They referred us to NHHEAF (New Hampshire Higher Education Assistance Foundation) who told me to apply online for student loans through them, but that they would depend on "creditworthiness." Grrrrrrr...and DS can't qualify as an independent unless he is married, has a child, is enlisted, or has lived on his own and not been claimed as a dependent on anyone's tax return for at least 2 years......None of those apply at the moment

By Crystal915 on Tuesday, June 20, 2006 - 11:25 pm:

Have you checked out Sallie Mae? Also, a Google search of "student loans" turned up LOTS of information, I'm sure he can find loans through those resourses. Believe me, there IS a way... just keep looking!!! ((((HUGS))))

By Mrsheidi on Tuesday, June 20, 2006 - 11:32 pm:

Long shot here...can he be emancipated? Not sure of how that process goes however.
Can he go to a different college? $8,000 sounds a bit steep. Is it for one semester? He can also do a work/study program to help work during school while he takes classes. Ask about that...

By Mrsheidi on Tuesday, June 20, 2006 - 11:33 pm:

I also know banks will give loans. And, to be honest, every kid has to start somewhere...credit or no credit.

By Kernkate on Tuesday, June 20, 2006 - 11:53 pm:

I was in the same position with my DS last year with college...I have no credit..not bad credit just none. DS Tom only got 3000 per year in grants. Don't give up there is a way. We did get our loan through Sallie Mae last year. Now I will be going through the same thing with this year

By Cybermommyx4 on Wednesday, June 21, 2006 - 06:14 am:

Anyone know if Sallie Mae requires a parent co-sign? Mrs. Heidi - colleges are very strict about what constitutes an "independent" student---which is understandable, because otherwise MOST parents would claim this so they didn't have to provide financial info., etc. Legally, an 18 yr. old IS emancipated, but they still want parents' financial info. ;) And it's kinda late to change colleges now - applications were due back in January. The school he is going to is actually one of the LEAST expensive options around here for computer engineering/programming. The total is only around $14,500 per year. Unfortunately, that IS a lot when you don't qualify for aid and you make just under $50,000 for a family of six I will start looking into Sallie Mae when we get back from the orientation today

By Karen~admin on Wednesday, June 21, 2006 - 08:14 am:

Sallie Mae required a parent co-sign freshman year. After that, they can normally get the loans without a co-signer, at a slightly higher rate. We were stupid, we co-signed for 3 years of Jeff's loans with Sallie Mae so he'd get a better rate. Jr. year, he stopped going, and he defaulted on the loan payments that we co-signed for. We are furious. We have to make the payments on time for a period of 24 months to get our names off them. Our agreement with him was that we would pay the loan for freshman year, because each year after that, they are offered a little more in Stafford loans, both subsidized and unsubsidized. He is *supposed* to be giving us the money each month to cover them, but 5 months have passed and I have not seen a dime. Plus with more than one in college by then, that helped with that.

My advice - if you co-sign for freshman year loans, realize that you are responsible for them too and could end up paying them. We agree to pay off that one. For subsequent years, let them deal with the slightly higher interest rate and get the loans on their own.

Jeff blindsided us with this. He was the last person on earth anyone who knows him would have expected to NOT finish college and screw up his bills this way. Needless to say, *this* mom is learning some valuable albeit painful lessons.

Also, there are a number of different types of loans - you can get a plus loan, parent loan, student loan - best thing to do is print out the qualifications and details of each and compare and decide which is the better fit for YOUR family.

Wendy, it will take some time and effort or your, or your DS's part, but get on the internet and search for private grants and funding. There are some ridiculous ones where the students have to write essays to be judged, etc. And they are for small amounts. But every little bit helps!!!! Also, if you don't claim him on your tax return as a dependent, I *think* that qualifies him for more stuff. It's been a few years so I don't remember all the details. Research and read!!!! And Good Luck!

By Lorebunde on Wednesday, June 21, 2006 - 11:29 am:

I work in f.a. - some alt. loans will release co-signer after 24 ontime payments. Maybe Another relataive/close friend can co-sign knowing they can be released from this loan later?

By Lorebunde on Wednesday, June 21, 2006 - 11:30 am:

One more thing to add....... If you know you will be denied on parent plus loan, let it get denied, then student is eligible for unsub, $4000.

By Cybermommyx4 on Wednesday, June 21, 2006 - 06:10 pm:

Thanks so much for all the advice. Joan this is exactly what the financial aid office told me today (they were more helpful this time than the last time we visited)...they also suggested "getting denied" for the plus loan so he can get an additional $4000 in unsub Stafford loans...this *may* be enough to cover the difference after scholarships (or at least come close)...they also suggested if there was an additional "gap" to have him apply for a LEAF loan through NH Higher Education Assistance Foundation. I know it will all work out in the end, but it is STRESSFUL to go through in the meantime ;) Thanks again to everyone for responding

By Janet on Thursday, June 22, 2006 - 11:23 am:

I was looking at a student loan website the other day I saw on TV...loantolearn.com
It's pretty interesting. Also, try brainscratch.com

I don't know if these would help, but they might. Also, one website that we've found to be an invaluable tool for information on scholarships and everything else you might need for college is fastweb.com

My dd is a junior this year, so we're starting the process. It's overwhelming, isn't it? Good luck!!!