Private Student Loans

  1. Hi!

    I know that this topic has been discussed before but I am a little confused.

    I have used up all of my federal student loan funds so I need to look into private student loans. My credit is not the greatest so I will get my father to co-sign.

    Does anybody have private student loans? If so, who did you use? Do you pay while you are in school?

    My plan is to take one lump sum for all 2-3 years left and then I can pay off my credit cards since I will be quitting my job and getting a lower paying one while I am in nursing school.

    Do they allow you to take one lump sum?

    Thank you

    Tracy
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  2. 18 Comments

  3. by   klone
    I got a private student loan through Wells Fargo (which is also my bank, but I don't think that's a prerequisite). You are able to take it as a lump sum if you wish. I believe you can borrow anywhere from $1000-10,000. It's unsubsidized, so you have to pay interest every month. There is also a $50 minimum you must pay a month, so if you take out just a small loan (which is what I did), you will probably end up paying off part of your principle as well (which is a good thing, IMO - by the time I will graduate, half of my loan will have already been paid off). Like traditional student loans, you must start paying it off within 6 months after graduation. The interest is a bit higher than traditional student loans (I think it's around 6-7%).

    HTH
  4. by   RedSox33RN
    I wasn't sure how much $$ I would need in total, because of a scholarship and attending a new school that is private and expensive. I filled out my FAFSA, but then applied for a private loan through Sallie Mae. I got one through Citizen's Bank. Works the same as other student loans, and my school will get the money directly.
  5. by   nurse2btracy
    I thought the maximum you could take out was 20,000. The 10,000 would work for tuition. I was hoping to get extra to pay off credit cards but as long as my tuition is paid for.

    Tracy
  6. by   klone
    Quote from nursetracy
    I thought the maximum you could take out was 20,000. The 10,000 would work for tuition. I was hoping to get extra to pay off credit cards but as long as my tuition is paid for.

    Tracy
    You could be right. I didn't pay a TON of attention to that, because I didn't want to take out any more than $3000.
  7. by   cherokeesummer
    I'm wondering the same thing but problem is I don't have a credit person to cosign for me. My Husband and I are both dealing with the afteraffects of a bankruptcy (which was 4 years ago). Most of my money from pay is spent on medical supplies and such (insulin, etc.). I do have a new job which will cover much more of my medical expenses but it pays a lot less than my last job.

    So, I've maxed my undergrad loans going for my other degree. Now I have to figure out how to pay for nursing school. so far I have paid out of pocket but cannot afford it any longer. I almost had to leave school but they did an emergency scholarship for me to pay for a portion of my costs. It is about 2400 a semester. Plus books and uniforms. I did get my uniforms, so now I;m just trying to pay for books and tuition.

    Anyone know of a loan for those with crapppy credit?
  8. by   nurse2btracy
    Hi!

    I went to www.alternativestudentloans.com and I think I saw a place that would give you a loan with less than perfect credit with no co-signer. I think the interest rate was a little higher.

    Hope this helps

    Tracy
  9. by   RedSox33RN
    Quote from cherokeesummer
    I'm wondering the same thing but problem is I don't have a credit person to cosign for me. My Husband and I are both dealing with the afteraffects of a bankruptcy (which was 4 years ago). Most of my money from pay is spent on medical supplies and such (insulin, etc.). I do have a new job which will cover much more of my medical expenses but it pays a lot less than my last job.

    So, I've maxed my undergrad loans going for my other degree. Now I have to figure out how to pay for nursing school. so far I have paid out of pocket but cannot afford it any longer. I almost had to leave school but they did an emergency scholarship for me to pay for a portion of my costs. It is about 2400 a semester. Plus books and uniforms. I did get my uniforms, so now I;m just trying to pay for books and tuition.

    Anyone know of a loan for those with crapppy credit?
    I would try it anyway. I think the "rules" are different for student loans. I don't work - SAHM of 4 - and I didn't even put my husband or his income on my loan app. Just went under my name and SSN, and was approved on that and my school info.

    Or talk to the Financial Aid counselors at your school. Truly, they are the experts. Good luck to you! I hope everything works out. It's terrible we need to think about money instead of just getting the education we so desperately want!
  10. by   klone
    As far as I know, they don't go by your credit history, only your income (and that of your cosigner).
  11. by   cherokeesummer
    Thanks for the suggestions! I will check them out. I'm working with my school financial aid officer on trying to get other loans/scholarships. Hopefully one will be in the works soon!
  12. by   francine79
    I don't believe you will be able to borrow a "lump sum" to pay for the rest of the years you have in school. You can not borrow anymore than what the cost of attendance per year is for your school. That and why accumulate interest on money that you aren't even using yet.
  13. by   klone
    Quote from francine79
    I don't believe you will be able to borrow a "lump sum" to pay for the rest of the years you have in school. You can not borrow anymore than what the cost of attendance per year is for your school. That and why accumulate interest on money that you aren't even using yet.
    Huh, that's not what I was told. I didn't need to show proof of how much my schooling would cost, only proof that I was actually enrolled there. They told me I could borrow anywhere from $1000 to $10,000 (or possibly $20,000). As far as why accumulate interest that you're not using - the OP said she wanted to pay off some credit cards so she would not have to work while she's in school.
  14. by   francine79
    Quote from klone
    Huh, that's not what I was told. I didn't need to show proof of how much my schooling would cost, only proof that I was actually enrolled there. They told me I could borrow anywhere from $1000 to $10,000 (or possibly $20,000). As far as why accumulate interest that you're not using - the OP said she wanted to pay off some credit cards so she would not have to work while she's in school.
    This must just apply in the state that I live because during my orientation, we were told we could not borrow more than the cost of attendance. I guess you could if you go to a regular bank or something, but as far as traditional student loans we were told we couldn't. My bf was also told the same thing at the university he attends.

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