How hard is it to get a student loan nowadays?

I still receive my Stafford loan, subsidized and unsubsidized. I believe that the Stafford loans
are funded by the federal government.

I got a stafford loan last semester and I will also be getting one this semester. I really didn't have any trouble, I just went to my financial aid area at my school and applied, I was able to name how much I wanted (within limits). I was afraid that I wouldn't get loans because I also get a small amount in federal and state grants, but I got it.

I think federal loans are still easy to get, but private loans are not. I got 3 loans from the same private lender a couple years ago, and now they are not offering loans or loan consolidation at all. I checked with a few banks and they have all suspended student loan programs. So Stafford loans are the best bet right now.

REPLY:
All you have to do is ask your own school's financial aid rep these questions and also check at the FAFSA website which has a TON - T - O - N - of info. However, I can tell you that you may be using the wrong term.

There are federal government SUBSIDIZED and UNSUBSIDIZED and PERKINS student loans which do not come from the State of Michigan.

There are SEOG, PELL grants and scholarships which come form BOTH the federal government and from Michigan.

You most likely are thinking about the PRIVATE student loan Michigan Alternative Student Loan (MI-LOAN) program that Michigan used to offer and has discontinued.

I suggest that you go to the state websites for the current info at -

http://www.michigan.gov/mistudentaid/0,1607,7-128-38195_39199---,00.html

http://www.michigan.gov/mistudentaid...201---,00.html

http://www.michigan.gov/mistudentaid...900---,00.html

I urge you to make sure that your FAFSA is corect when you resubmit it on January 1st, and I urge you to submit it immediately after 12:00AM as soon as the FAFSA website is available for the next year so that you will be at the FRONT of the line at your school for PELL and PERKINS money. Also, if you THINK you may want to attend a private school make sure you consider listing them in the #1 place on your FAFSA so you will be eligible for the state private school money when it is awarded. However, you need to check with your school on what they require their position to be on your FAFSA and if it makes a difference with their award for next year.

You can also go to your school's website and view their financial aid website. Most schools offer information on student loans.

However, I can share with you that unless it is REALLY a matter of LIFE and DEATH, I would strongly urge you NOT to take out private student loans if at all possible because they are very expensive, and frequently have variable rates, and can drown you in debt.

If you MUST take out private loans you can go to google and check out many lenders, but watch out for the SCAMS. Consider a major lender like JP Morgan CHASE Bank. Sallie Mae is VERY expensive! The secondary money markets for PRIVATE student loans is drying up because of the global economic crises. That is why private loans are more expensive now and harder to find than they were 1-2 years ago. TERI loans were major private loans but they, like Michigan, and many other private student loan lenders are closed because of the economic conditions.

If you have parents or others who will take the risk of co-signing for you that will open up more doors for you but that puts their credit at GREAT risk if you are EVER late or default on the loan - their credit will be RUINED along with yours.

If there is ANY way you can make it with no private loans and just use federal money or better yet no loans that is the best way to go.

I speak from hard experience.

Have a great life!