Obamanomics? Or something else....

[Anonymous]

Hi,

I'm just trying to find out if everyone is having issues qualifying for private student loans... or if its just me.

I am a 24 year old independent student in a professional pharmacy program - I have exhausted all federal and state forms of assistance (and do not qualify for federal PLUS loans) - I thus turned to private loans to attempt to bridge the gap.  I have been consistently denied for every loan I applied for. I've tried them all: Sallie Mae, Chase, Discover, Citi, Citizens Bank, Wells Fargo, as well as local banks and credit unions.

I don't have great credit, but that's not unexpected since I am young and a student - I have a score around 627.  The only person who seems to be credit worthy that could possibly cosign for me is my sister... She has a 725, makes $75K and has never made a late payment - yet the loans are still denied with her cosigning. 

Is this merely a result of increased lending regulations? Or am I missing something?

Please let me know if anyone out there is in a similar situation, I'd like to determine if this a national problem.

Thanks!

[Tazman81]

Hi Sairy and welcome to the boards.

Student loans have not been handed out as freely (my opinion) as they have been in the past.  It used to be if you had a decent credit score, then you could qualify for a private student loan.  Now, it seems banks are looking at these loans more closely (much like their traditional loans).

What are the reasons that you are being denied?  That can help determine what route you should taken in an effort to become approved.  Please excuse my ignorance of the program that you are in, but is the school able to help you secure financing through one of their "preferred" lenders?  Do they have a work program or somthing where you can work to try to cover some of the debts?

[castlefox]

If you have tried them all..... how many inquries do you have in the last two years then?  

What is the utilization on your credit cards?

Missed payments?

In my opinion-   Private loans have been harder recently because more people have been defaulting on their private student loans.