I was turned down for federal loans, now what??

[Wildcat06]

Hi All,

Hope this isn't a duplicate thread (but I don't think I've seen one). So I JUST found out that because of my school's very generous fellowship, I have been turned down for federal loans.

How do I go about securing private student loans? I have never done this before and was hoping I would not have to, but since I still have car payments to make, living just off my stipend isn't going to be enough.

Thanks a ton for any input (or commiseration)!

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[AryaStark]

Oh this plays off a question I had. I had initially not gotten any funding, however now my school has secured a full TAship for me (including stipend and tuition remission). Before that, I had applied for and been given subsidized and unsubsidized loans from the government. Although I am OVERJOYED with the TAship, it doesn't allow me enough money for a car, etc. Would I be able to use some of that loan money for extra expenses like the aforementioned car insurance etc or is that just meant for tuition? I would probably just want to use the subsidized, but I don't know if that is legal. Do you know how this works now that I don't need it for tuition? Will I have to go to a private lender? Thanks

Also, to somewhat answer your question, I would recommend looking into GradPlus loans. I know that all you have to do is get in contact with them, take their quiz like with other loans, tell them what you need for money etc etc. My boyfriend is using that for law school at the moment, and he is pretty happy with it.

Hi All,

Hope this isn't a duplicate thread (but I don't think I've seen one). So I JUST found out that because of my school's very generous fellowship, I have been turned down for federal loans.

How do I go about securing private student loans? I have never done this before and was hoping I would not have to, but since I still have car payments to make, living just off my stipend isn't going to be enough.

Thanks a ton for any input (or commiseration)!

 

[psyed4clinPhD]

Hi!

I had to do this in undergrad a couple times. I used Sallie Mae, but there might be others that have lower interest. I just went online to Sallie Mae website and applied. But if you are looking for lower interest rate, I would suggest contacting financial aid office at new school to see if there are other private loans for education that they can recommend. Hope that helps!

 

[Wildcat06]

Thanks, that is helpful. Maybe after the holiday I'll contact them. Right now I'm a little bitter they turned me down (even though I'm fairly certain it wasn't their call).

 

[Wildcat06]

Would I be able to use some of that loan money for extra expenses like the aforementioned car insurance etc or is that just meant for tuition? I would probably just want to use the subsidized, but I don't know if that is legal.

Yes, that is fine, as far as I know.

Also, to somewhat answer your question, I would recommend looking into GradPlus loans. I know that all you have to do is get in contact with them, take their quiz like with other loans, tell them what you need for money etc etc. My boyfriend is using that for law school at the moment, and he is pretty happy with it.

Thanks, I'll look into them too.

 

[TenaciousGirl]

Would I be able to use some of that loan money for extra expenses like the aforementioned car insurance etc or is that just meant for tuition? I would probably just want to use the subsidized, but I don't know if that is legal. Do you know how this works now that I don't need it for tuition? Will I have to go to a private lender? Thanks

Congrats on a TAship, that's awesome. It is my understanding (at least in my state) that federal loans are for tuition and school related expenses, including living expenses. I have used federal loans for things like rent and car payment. You can always ask your financial aide office. Definitely try to stay with federal ... hope this helps.

 

[TenaciousGirl]

Hi All,

Hope this isn't a duplicate thread (but I don't think I've seen one). So I JUST found out that because of my school's very generous fellowship, I have been turned down for federal loans.

How do I go about securing private student loans? I have never done this before and was hoping I would not have to, but since I still have car payments to make, living just off my stipend isn't going to be enough.

Thanks a ton for any input (or commiseration)!

Definitely look into the gradplus loan like the previous poster mentioned. Make sure to do your research on private lenders if you choose to go that route because they all look good on the surface. If you already have previous loans, try to stick with the same lender (even if your previous loans are federal) because then when you're done with school and it's time to start repayment, everything will be in one place with one lender. good luck.

 

[Therapist4Chnge]

Definitely look into the gradplus loan like the previous poster mentioned. Make sure to do your research on private lenders if you choose to go that route because they all look good on the surface. If you already have previous loans, try to stick with the same lender (even if your previous loans are federal) because then when you're done with school and it's time to start repayment, everything will be in one place with one lender. good luck.

Great post.

GradPlus will probably give you the best terms. Be very cautious of private loans because while they may advertise one rate, make sure you read the details.

 

[Wildcat06]

Great post.

GradPlus will probably give you the best terms. Be very cautious of private loans because while they may advertise one rate, make sure you read the details.

Thanks both of you! I'll look into that.

 

[Wildcat06]

Ack, so I looked into that and it looks like they are still federal loans so I'm guessing I'm not eligible...?

 

[futureapppsy2]

You've probably already seen this, but on the off-chance you haven't: http://www.finaid.org/loans/privateloan.phtml

Did you take out gov't loans as an undergrad? Could that be affecting your eligibility?

 

[Wildcat06]

No, I do have fed loans from undergrad but not much. I'm not eligible because the amount of the fellowship the university is giving me (in tuition remission and stipend) exceeds the estimated cost of attendance. (I know boo hoo, right? ) So there is no "financial need" for the fed loans to make up.

 

[Shallot]

Unfortunately, I think private non-certified loans may be your only option. I believe Wells Fargo is one of the few banks which still offers them. It'd probably be helpful if you had a co-signer with a good income...

 

[futureapppsy2]

Given that fellowship exceeds the estimated COA, you may have to do some serious searching and be confined to private lenders.

 

[Wildcat06]

Yeah, I think I've got it narrowed down because my school has a list of "recommended lenders" and Wells Fargo is on there. I don't think I'll need a cosigner because I've been out of school for 3 years and have my own income and good credit history. Would a cosigner still be beneficial?

 

[Wildcat06]

So I filled out two applications for loans. The second company I applied with wanted me to sign the promissory note BEFORE I knew the rate they would give me. I called up and asked them if they could give me more information before I signed and they seemed annoyed with this request.

Is this normal?? It seemed to me like they were trying to pull something. (Needless to say, I'm planning to sign with the other company who also quoted me a lower interest rate.)

 

[Therapist4Chnge]

So I filled out two applications for loans. The second company I applied with wanted me to sign the promissory note BEFORE I knew the rate they would give me. I called up and asked them if they could give me more information before I signed and they seemed annoyed with this request.

Is this normal?? It seemed to me like they were trying to pull something. (Needless to say, I'm planning to sign with the other company who also quoted me a lower interest rate.)

Re-read post #8.

 

[Wildcat06]

Haha, well put. I guess I just expected more since they were recommended by my university. I'm thinking I might even call up the financial aid office and tell them what they tried to pull to protect others who might not be so observant.

BTW, I'm going w/ Wells Fargo, so thanks Shallot for the confirmation.

 

[Wildcat06]

FYI for anyone in a similar spot, I was able to get my school to certify a private loan by proving financial need. I just put together a detailed budget based on my current budget and that was enough to convince them (and me) that my expenses exceed my fellowship. Scary but effective.