Advice - Student Loans

Discussion in 'Community Discussion' started by JackArc, Oct 29, 2007.

  1. JackArc macrumors regular

    JackArc

    Joined:
    Sep 10, 2006
    Location:
    Orange County, CA
    #1
    Just wondering the best way to go about this. I have my tuition and housing taken care of but I need some extra money for groceries and utilities while I am away at school. I had a very well paying job this summer and a nice size savings account but I just can't afford to work and go to school at the same time with my academics being pretty demanding. Just wondering if its possible to get a small student loan (about $2,000) to pay for groceries and utilities and things like a haircut and toothpaste. What is the best way to go about this?? Thanks a lot.
     
  2. ham_man macrumors 68020

    ham_man

    Joined:
    Jan 21, 2005
    #2
    Could you just take the money you made from your job and use that for miscellaneous things and then take out a slightly larger student loan for tuition and housing? Or is that option not a possibility?
     
  3. CorvusCamenarum macrumors 65816

    CorvusCamenarum

    Joined:
    Dec 16, 2004
    Location:
    Birmingham, AL
    #3
    Government loans are probably your best bet. Head on over to http://www.fafsa.ed.gov/ and fill out an appplication, and your school will send you a letter indicating how much and what types of aid you're eligible to receive. You don't have to take all of it. The upside of it is that it also puts your name in for grants, which unlike loans, don't have to be paid back. if you do end up taking out a loan, I'd go for the subsidized loans, as the interest you pay is generally lower then regular loans.
     
  4. Grimace macrumors 68040

    Grimace

    Joined:
    Feb 17, 2003
    Location:
    with Hamburglar.
    #4
    subsidized loans are the best bet. No interest or payments due while in school, they start 6 months out. 5% is pretty good for a rate too!
     
  5. adk macrumors 68000

    adk

    Joined:
    Nov 11, 2005
    Location:
    Stuck in the middle with you
    #5
    If you need the money now, i think your only real option is a private loan at an exorbitant rate. Federal loans take a lot of time and are usually only given out at the beginning of the semester. If you really, really need a loan, try to at least get your parents to cosign to get you a lower rate.
     
  6. JackArc thread starter macrumors regular

    JackArc

    Joined:
    Sep 10, 2006
    Location:
    Orange County, CA
    #6
    I've seen commercials for student loan companies that basically send you a check in a few weeks. That is what I am looking for. Stuff like fafsa and government loans are only qualified for people needing financial aid, which I am not. My parents pay my tuition, and do not qualify for financial aid. I just need the money for things like utilities and groceries - things that I didn't budget correctly for and am in full responsibility for. I will be fine next year, after I work over Christmas break and summer - but I just need a few extra dollars for the normal budget mistakes a first-year-on-their-own person makes. I should have no problem paying only 1, small student loan off after I graduate.
     
  7. Eidorian macrumors Penryn

    Eidorian

    Joined:
    Mar 23, 2005
    Location:
    Indianapolis
    #7
    FAFSA is love. I've gotten between $2,000-4,000 a year.

    Which makes my semesters just over $1,100 in the end.
     
  8. JackArc thread starter macrumors regular

    JackArc

    Joined:
    Sep 10, 2006
    Location:
    Orange County, CA
    #8
    Would a private loan be a smart thing to do? I can still skate by with the money I have - I would just feel more comfortable with a few extra dollars in the bank account. It also would be nice to eat a little better food, not cheap-out on any of my Christmas gift and be able to go out every once in a while.
     
  9. goodtimes5 macrumors 6502a

    goodtimes5

    Joined:
    Apr 4, 2004
    Location:
    Bay Area
    #9
    Not worth the hassle of a loan.
     
  10. adroit macrumors 6502

    adroit

    Joined:
    Sep 28, 2005
    Location:
    Victoria, BC
    #10
    Sound like the best thing for you is just borrow money form your parents. Just tell them that you're very tight right now, and that you will pay them back when you can work during christmas break. Getting an actual loan wouldn't be worth it right now, especially for not a lot of money.
     
  11. Leareth macrumors 68000

    Leareth

    Joined:
    Nov 11, 2004
    Location:
    Vancouver
    #11
    Take a loan from your parents if you can.

    Do not try to get those short term high interest things. you will regret it later.

    This is me speaking from experience.
     
  12. it5five macrumors 65816

    it5five

    Joined:
    May 31, 2006
    Location:
    New York
    #12
    Quote for truth.

    Except I don't even need to experience those private loans to know to stay far far far away from them.
     
  13. geekgirl macrumors regular

    Joined:
    Sep 26, 2007
    #13
    What about getting a job on campus, for just a few hours a week? I employ students, and some work just ten hours a week, and I've had some that only work 6 hours a week (@$8.00/hour). At that rate, you have minimal tax taken out, and it's enough for a few extras a week.
     
  14. jng macrumors 65816

    jng

    Joined:
    Apr 6, 2007
    Location:
    Germany
    #14
    do not get a private loan! You don't have to. Definitely go to the parents first. It's just not worth it to pay interest on a private loan. The interest won't be that great (and depends on your credit score).

    Don't go to to those companies either. I have a feeling they're out to scam you.

    As far as I know, everyone is eligible to take out stafford loans. The interest is subsidized by the government if you qualify for need. If not, the interest is your problem. Either way, it's still cheaper for you to borrow a stafford loan than a private loan.

    There's also something called aPerkin's loan, which was a flat 5% loan that I took from my University.

    Go to your financial aid office. They'll give you the best advice and you might be able to borrow money from the school if not a bank or your parents.
     
  15. Britanium macrumors member

    Joined:
    Mar 9, 2007
    #15
    Revolving line of credit -- only pay interest on what you use. Check with your bank.
     
  16. xsedrinam macrumors 601

    xsedrinam

    Joined:
    Oct 21, 2004
    #16
    FAFSA does help greatly and awards those who get in line, early on, and can document their need for aid. If you receive 100% benefit from FAFSA, they DO REQUIRE THE STUDENT TO WORK in the school work program, but those hours can be made flexible and doable

    The Stafford Loan is also a pretty good set up for the smaller amount(s) of need you mention, but any kind of loan should be avoided if at all possible. We have two in Uni one in pre-mediciine and the other in studio production & engineering, and they both work. We've tapped Stafford for just one small loan their freshman year, which becomes due when they graduate.

    Good luck.
     
  17. Sdashiki macrumors 68040

    Sdashiki

    Joined:
    Aug 11, 2005
    Location:
    Behind the lens
    #17
    FILL OUT THE FAFSA.

    Pray your parents are:

    poor
    divorced
    have multiple children that are preferably IN college


    I dont know anything about your situation, but Ive seen alot of cases where the parents "cant/wont" put their kid through college. However, according to their TAXES from last year, they make too much to offer you any financial aid.

    Everyone who appies with the FAFSA will receive financial aid.

    It works based on you being put in line with everyone else who has applied.

    The most needy are at the top and least needy at the bottom of the list.

    Your FAFSA + your parents taxes from the previous year give the govt. a number that is called your "need" (an algorithm if there ever was one). The govt then tries to meet this "need" by giving you financial add that hopefully equals something close to this given "need" amount.

    As time goes on and the needy are paid with grants, loans and work study allotment, there is less and less money to give out. (example, there is $10 million in grants, when all $10 million is disbursed, they move onto the next aid package, possibly another kind of grant, work study etc)

    Once they get to you, possibly, there is no more free money, so they offer you low interest loans and work study. When those run out, you get NO financial aid.

    The worst thing that could happen is you get $0 in financial aid. Extremely rare as even those with NO NEED still get access to student loans (sometimes just crappier non-subsidized)

    In a case where you have NO way to pay for college, this can truly sap your enthusiasm for going to college at all.

    BUT do not EVER think you need to pull a private loan to pay for college.

    ps: to fill out the FAFSA and NOT use your parents income as part of the form, you must be any of the following:

    be 24yrs of age
    a ward of the state
    in or were in the military
    be married

    pps: if you have ANY type of drug convictions, misdemeanor or felony or ANYTHING (literally anything) on your record, you can kiss financial aid goodbye, THANKS DUBYA! (ya coke head Yale alumn!)

    ppps: NEVER, EVER, EVER, EVER CONSOLIDATE YOUR LOAN WITH ANYONE BUT THE DEPT. OF EDUCATION! The fine print on every single private consolidator states they can and will SELL your loan to another company, which allows the next company to negate any "deal" (ie. interest rate and payment schedule) you made with the original consolidator. The DOE will never ever sell your contract.
     
  18. Airforce macrumors 6502a

    Airforce

    Joined:
    Jan 12, 2006
    #18
    That's a load of bull :p If I can be a full time student (12 hours) and hold down a full time job in the military(Active Duty Air Force), you can get yourself a few hours down at the local burger joint ;)
     
  19. hayduke macrumors 65816

    hayduke

    Joined:
    Mar 8, 2005
    Location:
    is a state of mind.
    #19
    A federal subsidized loan is the way to go -- for the reasons already stated. Something else you can consider, which isn't entirely kosher, is to take the max loan amount for the semester (~$5-10k) and invest (very conservatively) the part that you don't need. This way you can make some money that will help offset the cost of the loan (even the subsidized loans have some fees).
     
  20. Dagless macrumors Core

    Dagless

    Joined:
    Jan 18, 2005
    Location:
    Fighting to stay in the EU
    #20
    Seconded.

    I got a loan from the Studen Loan Company (or whatever they're called). The interest is minimal from official student loan places, best bet is parents. They bought me many a pretty and useful company/camera/et al whilst at university. But I needed a loan to cover travel, course fees etc.
     
  21. Sdashiki macrumors 68040

    Sdashiki

    Joined:
    Aug 11, 2005
    Location:
    Behind the lens
    #21
    If you get loans, and you are $ savvy (if you need loans can that even be possible?) you can easily invest the money, while the interest is being subsidized.
     
  22. yg17 macrumors G5

    yg17

    Joined:
    Aug 1, 2004
    Location:
    St. Louis, MO
    #22
    I had to take out private loans. My first year I did the FAFSA, and got like 3 grand in an unsubsidized loan from the government, and that didn't even cover one semester's tuition. My second year, I did FAFSA and they gave me nothing. 3rd and 4th year, I didn't even bother. And my parents are by no means rich. I had no option but to take out private loans.


    So what if I'll have 80 grand in debt when I graduate and will be paying out the loan for half of my life? It's still worth it. Would I be able to get a good job without a college degree? Probably not.
     
  23. shecky Guest

    shecky

    Joined:
    May 24, 2003
    Location:
    Obviously you're not a golfer.
    #23
    agreed with yg. a statement like "you should never need to get a private loan" is just silly. depending on where you go to school tuition can be upwards of $45K+ (NOT including room, board, books, supplies, etc..). i went to an expensive private art + design school and the only way i could do it was with private loans on top of scholarship, grants, Perkins loans, Stafford loans, and working freelance.

    worth every penny.
     
  24. Sdashiki macrumors 68040

    Sdashiki

    Joined:
    Aug 11, 2005
    Location:
    Behind the lens
    #24
    This is the inherent problem with the FAFSA, those whose parents dont make enough to pay for college, but according to the FAFSA they should be.

    Nothing you can do but try for one of the options I listed above, to get only your income on the FAFSA (usually close to $0 giving you 100% need)

    It sucks that many middle class people find it is impossible to pay for college and that the FAFSA was no help to them. There is nothing you can do, but try for scholarships or get a job.

    If you are taking out a private loan, its your choice, you dont have to. Art/Design schools are $$$ because they are typically private. If you cant afford the school, then there is probably a reason (they dont want poor people!) lol. Back in reality, yes private loans have their place, but NOT when you are only using it to subsidize your own income in lieu of getting a job.
     
  25. FoxyKaye macrumors 68000

    FoxyKaye

    Joined:
    Jan 23, 2004
    Location:
    San Francisco, Terre d'Ange, Bas Lag, Gallifrey
    #25
    Couldn't agree more.

    Also, private loans taken out for education are not eligible for having their interest tax deductible. And, the private companies (notably Sallie Mae) don't have any option for hardship deferrals, restructuring your payments, or any of the other items that the federal (subsidized and unsubsidized) loans make available to help with repayment.

    I took out a private loan through my grad school that they assured me was on the level - the second I graduated it was sold to Sallie Mae, the interest rate went up, and I had none of the recourses available to me through my other federal loans. Stay away from the private education lenders if at all possible.
     

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