Student Loan with Less Than Stellar Credit?

[crisi]

College is a joke. Only the really poor & really rich can afford it, really.

I feel for you OP, I really do. Good Luck.

Not true, but you HAVE to pick a college you can afford, and it helps if mom and dad have been saving for it for the past 18 years - most families simply can't create $10,000 a year that they didn't have.

The 4 year state school I graduated from was $6k a year. A lot of us - including myself - worked full time and took classes half time and lived at home. That meant we had $3k a year to fund - and took eight years to graduate (I started "mostly done" but switched majors - I only had three years of school - including summers - but I graduated with people who had been going to school for ten years to get their B.S.).

There are three huge issues with college funding:

Parents put off saving - when your kid is two, or six, or ten - college seems so far away and there are so many other demands on your income.

Kids and their parents pick colleges not based off what is reasonable to afford, but off where they want to go.

Parents and kids believe that scholarships and financial aid is available. It is available - but it isn't sufficient to cover all your kid's expenses at anything more than a community college (and probably not there) and it most often comes in the form of loans which leave you and your child in debt for college. Its hard to look at your two year old and know they have the talent for a hockey scholarship or are going to be a National Merit Scholar. Don't bet on it.

 

[bettymae1121]

Listen to what the other posters are saying. A friend of mine was in the exact situation as your daughter. Just as she started her freshman year, her father had a stroke and wasn't able to work so of course lost his job. They couldn't afford to give her the money for school that she needed (they hadn't saved and were going to fund it from current income, which went away when he got sick) She had been accepted to a very good, very expensive private school. She went anyway and 4 years later graduated with $100k in student loans and got a job for only $30k a year right out of school (this after graduating from one of the top schools in the US with honors!).

A few years later she got layed off her self, had to declare bankruptcy due to her own medical bills. But school loans aren't dischargeable in BK so almost 10 years since she finished college, she STILL has that monkey on her back, I don't know if she'll ever be able to pay them off. She is now a housewife, she doesn't work at all and her husband works two jobs to support them (she has some medical issues, and also suffers from depresion).

Now some of my friends problems are due to her own medical issues, but her situation would have been MUCH better had she downgraded to community college for two years and then gone to a less expensive IL state school for the other two. In stead of $100k in debt she could have graduated with either no debt or very little, she may have even been able to avoid BK a few years ago since she would have had more available income to pay her other debts.

I know it's tough, especially at the last minute, but I'm telling you...you are setting your daughter up for a very tough road at best and possible financial ruin at worst. If there is still time enroll her in community college for this fall. If it's too late, have her start in the spring and she can work and get some money saved up between now and then, she may even be able to pay her first semester out of pocket and not need a loan at all if she can work enough.

 

[ptmmg]

this thread makes me sad!!I have a dd entering her junior year in a private expensive college we had to take out loans to get her through. Now that she is in her third year we cant have her transfer, no option of living at home since her school is 800 miles from where we live.

If I had to do it over we would opted for state school or CC for 2 years then transfer the last 2 years the diploma will not say you went to a CC just where you graduated from. Now ds is a senior we are looking at State schools for him if he goes to a private school it will only be because he is very good at sports and as already been contacted by coaches otherwise he is fine with a state school or even CC for the first 2 years.

 

[daughtersrus]

I was unable to get a private loan. In the meantime, I'm holding off on paying the August mortgage so I can send a payment installment to the college so my daughter can start school in 3 weeks. My sister in law has SallieMae loans for her own daughter and is looking into "piggybacking" a loan for my daughter. I'm a teacher and I waitress in the summer. I now plan to be a teacher/waitress all year Plus I'll probably tutor. She will also be expected to get a job once she settles into school.
My husband and I wrote up a budget to get our credit back in good standing. Hopefully we'll qualify for loans next year. I wonder if 1 year of timely payments is enough to straighten it out?

Here is the information that I've found. It appears that Parent Plus Loans go back 5 years.

What is the required credit score for the Parent PLUS Loan?

Eligibility for the PLUS Loan depends on a modest credit check that determines whether the parent as an adverse credit history. An adverse credit history is defined as being more than 90 days late on any debt or having any Title IV debt (including a debt due to grant overpayment) within the past five years subjected to default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off.


Like others have suggested, maybe looking into a community college would be best. My DDs both went to our local CC two years and got the AA. They then transferred to a state school. It wasn't exactly what they wanted to do but it was what we could afford.

We told them that we would pay for CC and after that, they were on their own. DD#1 graduated this past Dec with a total debt of $13,000 in student loans. She was able to get a tuition waiver and chose to move home the last 2 semesters to do her practicum and student teaching in the suburbs so that she could live at home. So her debt is pretty much just 3 semesters of room/board.

DD#2 is transferring this week. She was not selected for the tuition waiver so we took a Parent Plus Loan for her. She is going to reapply but in the meantime, she has her name on the list to be an RA. If she's chosen for that, she will not have to pay room/board.

Is that something that your DD might want to try? It would cut the bill about in 1/2. Also, I NEVER buy the books from the school. There are search engines that will give you the site with the lowest cost of the book after you plug in the ISBN#. Also, I NEVER sell the books back on campus. I list them on Amazon and often times, make money. I just sold DD's history book for $78 and I paid $21 for it last semester. It doesn't always work this way but even if it's lower, it's still more than the bookstore was willing to give.

Just some thought that may help. Best of luck!

 

[Aurora D]

Thanks to everyone for their suggestions and thoughts. I talked with my daughter this morning and explained that if we can't get the funding she may have to go to CC this year. Needless to say she very disappointed. I just wanted better for her. She did well in school and it was always just assumed she'd go way. The school we've chosen is out of state but only costs about $4,000 more a year than a NJ public college. I put myself through college. It took 12 years while I took care of the kids and waitressed at night. My husband was disabled for a very long time, so that contributed to us never being able to save anything. He's been back to work for about 2 years, but was laid off for 6 months out of that. That's when all the bills fell behind and remained behind. In any case, the tough decisions need to be sorted out before Tuesday. That's when the first tuition bill comes due. Of course, my daughter has expressed that she doesn't want us to struggle. I explained, we've always struggled. We're used to it!LOL. Last issue is if she does go to CC she doesn't have a car. And she won't be getting her license until December. The problems never stop!~

 

[ccgirl]

Thanks to everyone for their suggestions and thoughts. I talked with my daughter this morning and explained that if we can't get the funding she may have to go to CC this year. Needless to say she very disappointed. I just wanted better for her. She did well in school and it was always just assumed she'd go way. The school we've chosen is out of state but only costs about $4,000 more a year than a NJ public college. I put myself through college. It took 12 years while I took care of the kids and waitressed at night. My husband was disabled for a very long time, so that contributed to us never being able to save anything. He's been back to work for about 2 years, but was laid off for 6 months out of that. That's when all the bills fell behind and remained behind. In any case, the tough decisions need to be sorted out before Tuesday. That's when the first tuition bill comes due. Of course, my daughter has expressed that she doesn't want us to struggle. I explained, we've always struggled. We're used to it!LOL. Last issue is if she does go to CC she doesn't have a car. And she won't be getting her license until December. The problems never stop!~

That is rough. Sounds like maybe she might do best by taking one semester off; working full time, getting her license, then starting at CC in January?? She can then transfer with her associates to a state school and live away. The first two years are very similar no matter what school you go to. Starting with all your ducks in a row is a lot easier than starting behing the 8 ball. That's great you were honest with her. It took me 12 years to eventually get my BS as well so I know what it is like to work hard to get it and have to do it yourself. It's not easy but I think it was so worth it. Good luck to you all.

 

[cglaura]

I think what everyone can agree who's posted is that every parent wants better for their kids.

My word of caution is with the missed mortgage payment. I'm not sure if it is the case with your bank, but find out. Most mortgage payments, if you miss one, you can't just pay it late, and have the other late.

Say you miss August, you can't just pay August in Sept. and have Sept. late. They will want both August and Sept., or nothing at all. My friend just dealt with this, she thought she could just float it along for a few months, but it isn't like a cable bill, etc. They mailed back her one payment saying it wasn't the amount due. Either way, putting your house at risk is something to really try to avoid.

It is good you had the talk with dd, at least she is understanding about it all.

 

[LilyWDW]

To be blunt... college is not a right. Not everyone should be in college or can afford college. The issue is that we as a country have forgotten that. If you don't have a college degree it can be hard to find jobs. We have allowed it to become this way.

Now, college doesn't have to bankrupt you before you even graduate. The school I attend is about $5k a semester and we are a top rated school. So, $10k a year. I will have graduated from undergrad AND grad school with less in loans then my cousin has from JUST undergrad.

 

[bettymae1121]

That is rough. Sounds like maybe she might do best by taking one semester off; working full time, getting her license, then starting at CC in January?? She can then transfer with her associates to a state school and live away. The first two years are very similar no matter what school you go to. Starting with all your ducks in a row is a lot easier than starting behing the 8 ball. That's great you were honest with her. It took me 12 years to eventually get my BS as well so I know what it is like to work hard to get it and have to do it yourself. It's not easy but I think it was so worth it. Good luck to you all.

I agree. Obviously you're got a lot going on and you may have other considerations that you haven't posted, but bassed on this perhaps it's best she start with the spring semester. Then she'll have a license and hopefully some money saved up if she's able to work between now and then (school is starting soon, does someone in your area need a sitter for before/after school care?). Once she's done two years at a CC she can re-asses and decide what she wants to do at that point, based on her own goals and your financial picture at that time.

Whatever you decide, good luck!

 

[Disneycrazymom]

Don't forget the CC offers night classes. Maybe she could work a bit during the day and then take your car to night school? Or could she take you to work and then take the car to school? This is really a hard time for your family thinking everything was good to go away and finding out so late that it is not working out. I hope you can find a solution that will work for all of you!

 

[daughtersrus]

To be blunt... college is not a right. Not everyone should be in college or can afford college. The issue is that we as a country have forgotten that. If you don't have a college degree it can be hard to find jobs. We have allowed it to become this way.

Now, college doesn't have to bankrupt you before you even graduate. The school I attend is about $5k a semester and we are a top rated school. So, $10k a year. I will have graduated from undergrad AND grad school with less in loans then my cousin has from JUST undergrad.

You're right, college is not a right but without a degree, it can be near impossible to get a job. Heck, even with a degree it's hard.

I'm guessing that the cost that you quoted is for tuition only. If you don't live near a public university, you have to add on room and board. Often times that is as much as the cost of tuition.

 

[crisi]

You're right, college is not a right but without a degree, it can be near impossible to get a job. Heck, even with a degree it's hard.

There are a lot of jobs that don't require a degree. My neighbor is a hairdresser, her husband a mechanic. They do pretty well between the two of them. My other neighbor is a lineman for the electric company. A friend's husband is a machinist. My uncle is a carpenter, my cousin a roofer. You'll have a better chance of getting a job pursing any of these fields than going to college and getting a B.A. in a History.

 

[daughtersrus]

There are a lot of jobs that don't require a degree. My neighbor is a hairdresser, her husband a mechanic. They do pretty well between the two of them. My other neighbor is a lineman for the electric company. A friend's husband is a machinist. My uncle is a carpenter, my cousin a roofer. You'll have a better chance of getting a job pursing any of these fields than going to college and getting a B.A. in a History.

I'm not going to disagree with you about the BA in History. DD has a degree in SpEd and it was still pretty hard for her to get a teaching job. The district that hired her had over 5,000 applications for the 27 positions (not all teaching). Needless to say, we are very thankful that she has a job as a new graduate.

Lots of the other jobs you listed never used to require a degree but lately they seem to. My DH is an auto tech (they don't like being called mechanics for some reason). He went to community college 27 years ago and got all of his tech classes. He's been a journeymen for 25 years but the guys that they've hired in the last 10 years or so all have some type of technical school (Lincoln Tech...) It may not be a B.A. but it still costs the same if not more. There's also very little hope of them ever making it to journeymen. They keep them at much lower pay rates as quick lube, semi-skilled or apprentice. Same goes for electricians, machinists, elevator techs... Not to mention that so many of these jobs have been hit with huge layoffs. Getting in without schooling or experience is next to impossible.

 

[Darcy03231]

To be blunt... college is not a right. Not everyone should be in college or can afford college. The issue is that we as a country have forgotten that. If you don't have a college degree it can be hard to find jobs. We have allowed it to become this way.

Now, college doesn't have to bankrupt you before you even graduate. The school I attend is about $5k a semester and we are a top rated school. So, $10k a year. I will have graduated from undergrad AND grad school with less in loans then my cousin has from JUST undergrad.

A lot depends on where in the country you live. Where we live the cost of a state university runs about $20k and year and community college runs around $8-15k a year, depending on the program.

 

[bettymae1121]

There are a lot of jobs that don't require a degree. My neighbor is a hairdresser, her husband a mechanic. They do pretty well between the two of them. My other neighbor is a lineman for the electric company. A friend's husband is a machinist. My uncle is a carpenter, my cousin a roofer. You'll have a better chance of getting a job pursing any of these fields than going to college and getting a B.A. in a History.

That's me and DH. He runs the printing press at a major newspaper and I'm a travel agent working for a non-profit organization (I book all their business travel). Neither of us have a college degree, and we make low six figures.

That said we want our kids (if we ever have any) to go to college if at all possible (meaning they're the type that would do well in college, higher education isn't for everyone). It just gives you more oprotunties in the long run.

 

[patsal]

Well, it isn't always easy to save for your children's education when you have your own student loans to pay off. The first 10 years was spent paying off dh's and my own undergrad loans and the second 10 years will be paying for the loans from both of our Master's programs. If I had been blessed to have parents with the income necessary to pay my tuition, than I would be able to give the same blessing to my children. I have a son going to CC, he is unwilling to go to the local one so he will be dorming. $3600 tuition and $5800 for room and $1900 for board. I will pay tuition but not room and board when the same thing is available locally. It isn't the tuition cost, it is the room and board that kill you!

 

[Lisa_M]

That's me and DH. He runs the printing press at a major newspaper and I'm a travel agent working for a non-profit organization (I book all their business travel). Neither of us have a college degree, and we make low six figures.

That said we want our kids (if we ever have any) to go to college if at all possible (meaning they're the type that would do well in college, higher education isn't for everyone). It just gives you more oprotunties in the long run.

I agree with you especially regarding the bolded. My parents both made good money for the area where they live, starting at the bottom and working their way up in a company. When my mom was laid off in her mid 40's, she could not find a half decent job for a year (the length of her severence) and went from 55k a year to 25k. She has an associates, and it's just not enough anymore. Even in the job she is in now, she has no movement unless she gets a bachelor's degree. I don't think it is necessary at all in her field, but deemed required.

DH has an associate's and has been working 2 days a week for the last year with no job nibbles in sight. Most of the positions available, even ones he has the skills to do require a bachelor's degree at a minimum. He applies, but isn't considered qualified. He is considering going back to school for engineering, but for what is always the crap shoot. What is hot now, may not be in 4 years.

 

[Chelley00]

I talked with my daughter this morning and explained that if we can't get the funding she may have to go to CC this year. Needless to say she very disappointed. I just wanted better for her.

Please don't think of community college as a death sentence or something. It's not the case! Many people graduate from a community college and do quite well, or transfer their credits and still complete their degree. Most employers look for a degree, and don't even realize that you spent the first 2 years of your college life at a community college.

 

[BubMunkeyBles]

I have a BA in History. Just saying!! It's pretty much good for research, museum work or teaching. Anyways...

Makes me happy I live in Florida. While our public schools stink for the most part, our public universities are actually decent and VERY cheap compared to everyone else, less than 2500 for a full 15 credit hour semester.

 

[SarahKate]

Hugs to the OP, first off. It's a hard situation to be in and I do agree with other posters that taking a risk with a mortgage payment is only going to make things worse in the long run.

Please keep telling your daughter that community college is not a joke. It's a REAL education, it's not some sort of loser school or something. It's a great education but at a fraction of the cost. I like what one of the other posters mentioned, maybe she can take courses in the evening, leaving her to be able to work someplace during the day and maybe borrow someone's vehicle? Or maybe she will have friends who may be going there who she can ride with sometimes?

We are fortunate to have my dad who has a college plan set up for our DD8....and just so OP knows, it will cover 2 years CC and 2 years at a 4-year school! Every intent for her to go to the CC that I went to those first two years. She'll have to deal w/ it if she decides to go to a 4-year w/o the CC years. If it weren't for my dad doing this, we wouldn't have anything saved up for her. Like many, we are living paycheck to paycheck.....I really don't have a problem with her putting herself through college (although I would likely help her pay them off). She'll definitely value it more I think, knowing that it's ultimately going to come out of her own pocket.

I'm 36 and getting ready to start college this fall - finishing my Bachelor's hopefully w/i 2 years. Then I'll have my OWN student loans to pay off, hopefully well before she graduates from HS!