Student loan Application

[valenzy]

Hi everyone,

I've been a keen reader (and follower) of this forum since last year and have often found the advice and experiences most helpful. Anyway I'm now faced with this challenge: I'm in the process of applying for a private student loan for my final 2 years of college. Yes I have researched my options in terms of most federal loan programs and unfortunately private loans seem to be the only option available.

a. I plan on applying to 4 student loan companies - Discover, Wells Fargo, Citizens Bank Tru Fit and Sallie Mae

b. I don't plan on applying with a co-signer - because I don't have one.

c. I plan to apply to all 4 companies all at once (on the same day). Is this a good idea - in terms of its impact on credit scores? My reason is to hope that at least one company approves my application.

d. My FICO credit scores as of ending last month is EX. 692 TU. 696 EQ.715  Income is about $40,000.

     Also out of the 4 credit card Accounts (and 1 personal loan account), I only have 1 derog, 2 missed payments. Everything else is clean. 

e. I plan to apply for $30,000 - tution, books and living expenses

Finally, this might sound interesting but my major concern right now is being approved and not necessarily the interest rate. Also if you need any further clarifications, just ask away and I'll do well to respond as soon as I can. Please feel free to share your experiences - as well as advice on I can best approach this situation. I plan to apply by mid-July.

[jd352]

It is extremely difficult to get a private student loan without a co-signer. 

As for applying, I would space them out until you knew the results of each application to avoid unecessary hard pulls on your credit since you don't care about the interest rate. 

I was in a similar situation (exhasuted all federal options) and applied for the Discover student loan for $8k. Interest rate was the highest of all my SL's (8%), so it was the first I paid off when I graduated (the day before the first payment was due, I paid it in full). My income at the time of application was close to $25k per year, but I used that to pay for living expenses and the loan to pay for just the tuition bill. I was able to get a few thousand more out of the college in scholarship - but it was a lengthy process that ended up only applying to the final year. I applied as an individual at first, but was countered with an approval only with a cosigner. Fortunately, my father cosigned nearly all of the loans that required a cosigner. Therefore, I am not sure if you will have much luck with Discover as they seem to only approve with a cosigner for their student loans. 

[valenzy]

Hi and thanks for the prompt reply...and for sharing your experience. Its comforting to know that others have been there before and are willing to help out. I kinda figured that applying without a co-signer would be difficult but seeing as I don't have anyone willing to help out unfortunately, I would have to take a chance and pray that it works out. 

Do you by any chance know where any of the student loan companies pull from? I know Sallie Mae pulls from TU because I applied 3 years ago. You mentioned Discover, any idea where they pull from?

[Luscher]

I got a private student loan without a cosigner with Salie Mae. But, I have a score in the high 700's so that may have been a major factor.

[valenzy]

OMG! Finally a glimmer of Hope!

I know its silly and nothing to be excited about but at this point a shimmer of hope is better than nothing. So ok Luscher, please forgive me but I have a few more questions because Sallie Mae is on my list of companies I want to apply to:

Do you remember where they pulled from? How about income and other relevant information? How long was your credit history when you applied? Any delinquencies or collections at the time of application? what about your credit utilization? Anything you remember will be very much appreciated. Plus, you don't have to give a very detailed information just enough so I can guage my chances of approval or denial.

At this point, I'm just trying to gather as much information as I can to help me be prepared with plans A, B and even C if the worst happens.

[Luscher]

I don't think they asked for income
credit history 3 years
utilization 1%
CS: above 700

[jd352]

I can't recall who they pulled because I really didn't pay attention to things like that back then. But, I do know my score was roughly around 690 at the time I applied. 

[JosephS112]

I am not sure if you are still waiting to apply for these student loans, however I will say that I was approved for a 5,000 dollar student loan through Sallie Mae with a 6.275% interest rate without a cosigner, which is a bit over 1.5% higher than federal student loan rates. They pulled Transunion only for me and my credit score is 740, around 7% utilization, and no negative record whatsoever. It was pretty painless. I'm in my early twenties so I don't have the longest average age of accounts (a little over a year) or anywhere near the highest income but I do have my fair share of credit cards, and a few federal student loans. But everyone's experience might be different but I say you have a fair chance with Sallie Mae. I also tried Discover (because I have history with the company) and they only approved me if I used a cosigner. 

[valenzy]

Hi there and thanks a million for sharing your experience with me. This show of support really means a lot to me. Anyways to answer your question: I'm still waiting to apply for the student loans because (1) I'm waiting for a few hard inquiries to fall off all 3 credit reports. and (2) I'm still hoping to gather as much information as I possibly can from forums such as this one before I apply because I want to be better prepared due to the peculiarity of my situation. My goal is to apply by the end of this month or early next month. From what I've gathered so far

a. Most of the private student loan companies such as Sallie Mae, Discover and Citizens Bank seem to be pulling from TransUnion.

b. Scores must be in the high 700s

c. Utilization should be less than 10% - just to be safe

d. Income - though not top on the list - should not be less than $20,000

e. Delinquencies, derogs and collection may (or may not) count against you depending on the lender and your peculiar situation.

f. Length of account history also may (or may not) count for (or against) you.

Does anybody has an experience with Wells Fargo in terms of loans (of any kind)

[JosephS112]

Oh also, giving you further information, Discover actually checked all three credit bureaus (that could be for just me if I was on the border, or for everyone in general). I would avoid applying with them if you are somewhat unsure, just for that fact.