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12-15-2012 09:40 AM
I signed up for classes Fall semester. THe fall semester is about to be over. I need 1,000 to pay it off. Any student loans I can apply before it goes to collection? My credit score is around 600 =/. Thank you!
12-17-2012 07:16 AM - edited 12-17-2012 07:20 AM
I'm not sure why you are talking about the loan going to collections already. You have 6 months grace period after leaving/graduating school before loans are due. You also have several options to postpone or modify repayment on government loans. Deferment, forbearance, income based payment plan. The whole idea that you are contemplating collections before attempting to make a payment or agreement makes no sense. Before collections you have a 30, 60, 90, 120, 150, 180 and more late payment remarks. I think federal loans don't default till after 240 days late or something ridiculous like that. All that aside, before you even get a late payment, call the servicer and make arrangements.
Edit: never mind. I see now that you are talking about a balance due to the school that has not been paid for a semester that has already ended. I would ask the school when payment is due. Are you taking spring classes? I would try to get a loan for spring that covers $1000 more than your spring tuition and use that extra. I have never heard of a retro student loan.
12-17-2012 09:42 PM
With a score of 600, any unsecured loan is going to be difficult to get, and you'll likely see a higher interest rate than other borrowers with poor credit. If you have an established relationship with the CU, and your loan amount is low, you may have success, but that is not gaurenteed.
Have you talked to your school's financial aid office? It is always preferable to take out federal loans first, and those do not consider your credit.
12-18-2012 11:29 AM
All of my student loans were funded through my credit union. Once I was finished with school, I consolidated all of my loans with the government (22k). I had no issues and everything went smoothly. My credit score was not super high at the time, but I had a good relationship with my CU.
12-18-2012 11:51 AM
12-25-2012 07:48 AM
One thing that is crucial is the TYPE of loan you get.
PRIVATE LOANS tend to carry a bit higher interest and if you miss a payment, pay late etc. the lenders are NOT willing to work with you or forgive. They will send you straight into collections or default just like you are missing a payment on an auto loan or a credit cared
FEDERAL LOANS generally have lower interest, better terms. And if you are going for higher dollar amounts you will carry for a number of years then it is really worth it to repair whatever needs work on your credit report until you qualify, because the government is much more willing to work with you if you ever hit a rough patch and have trouble making full payment. They will work wth you by creating alternative payment plans until you are back on track. They even erase delinquencies from your credit report after you have had "good behavior" for a while.
It sounds like you're in a hurry but if you do go to a bank or CU, make sure that the loan is at least a "PRIVATELY HELD FEDERAL LOAN" instead of a straight private loan. This means the governmet is giving funds to the lender to originate loans, and the government will consolidate them for you after you graduate. Then you would be in a federal direct consolidation loan which qualifies you for the terms i mentioned above plus all sorts of laon forgiveness plans that are not available for private loans.