Paying security deposit/first and last rent

[Plasticbag80]

Hi guys,

So I'm a rising MS1 at a public institution in CA and I'm paying for my education through (mostly) federal student loans and grants. My problem is paying a security deposit and first months rent upfront when signing a lease to an apartment since my loans don't get disbursed until I actually start classes (and I would need an apartment before we start orientation/classes). I'm going straight through from undergrad so I haven't had much time to make any money and I come from a poor, working class family that has no assets. I don't have much knowledge in the financial realm so everything I've read so far on loans and credit cards is really confusing.

Does anyone have advice on how to get ~$2500 (loan, credit card, etc) to pay for security deposit and first month's rent that I could pay off with my federal student loans once they've been disbursed. Or has anyone been in a similar situation that could share how they were able to sign a lease before getting their student loans.

Thanks for your help.

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[DokterMom]

There are "cash advances" on your credit card, but those are expensive sources of money.

Generally landlords will ask for various credit/financial information, so will know how you are getting the money to pay them. They may be willing to wait on part of it if you explain your situation.

Or, if you'll be having roommates or living in a group house, you may be able to shift that burden to somebody else.

 

[backside_attack]

Are you a member of a credit union or bank? Go in and talk to them about options for personal loans - they're typically for smaller amounts like you're talking about and different from home loans, mortgages, or student loans. They'll come with a higher interest rate, but you can pay it off in bulk once your loan is disbursed so you will avoid accruing too much interest.

Talk to the landlord - they may be willing to defer the first month's rent if you pay the security deposit now, or vice versa.

 

[whatsupdr]

Did you check with your financial aid office? I have seen a school on the east coast that will give you up to 1500 in advance if you are getting financial aid. I think this would only be if your taking out loans for expenses and rent.

 

[OMG I'm going to be an MD]

Show your apt manager proof you'll be awarded enough money to cover rent and ask them for an extension, or at least to defer one of those payments so that you borrow less. I've asked for extensions for my electricity and credit card bill before (I've haven't tried it for an amount >$850 though.

 

[Plasticbag80]

Thanks for all your responses. I feel uneasy talking to potential roommates about apartments and then disclosing to them that I don't have money to pay for the security deposit. I have spoken to the financial aid officer at my school and she says that there isn't much they can do. Would it be financial ruin to take out a personal loan from say Discover and then pay it off ~3 weeks later once I get my loans from the government?

 

[Plasticbag80]

Asking the landlord for a little leeway is also an option but again I feel bad making a commitment with future classmates about housing and then holding them back by needing the landlord to be understanding about my situation.

 

[IlDestriero]

My university had an emergency loan program. I think it was limited to $1000, but it was on your honor so all you had to do was ask. It's better than nothing. Between something like that and a CC, a $500 loan from your parents, your emergency savings, etc. you can probably get there.
As a fancy pants lower risk medical student, you might convince the landlord to accept less upfront with a promise to pay the remainder within 30 days or something. Forward them something official and impressive looking. You're not the average deadbeat tenant they have to worry about.

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Il Destriero