Student Loans (Private) and Credit Scores

[jenrenea]

My sister expressed a desire to return to college to finish off a bachelor's degree.  She did her FAFSA but I guess she's used up nearly all of her financial aid (she'll be finished December 2016, but it took her a long time and a few major changes to get there!)  I offered to lend her the money myself, but she says she wants to exhaust her options.  What options does she have?  Her scores, she says, are mid-600s.  I know she's never filed bankruptcy.  We've been researching tonight, but everything we can find seems to indicate that you need nearly perfect credit to obtain one.  Can anyone elaborate?  If you obtained a private student loan, who did you go through?  What were your scores?  Is it easier to get a personal loan than a student loan?  The difference between what she can get federally and what she needs is about $5k.  I'm not sure if that matters.

I don't really know squat about student loans, but figured someone on here must.  

[Anonymous]

It should be attainable. Whatever school she attends should have a financial aide department. Have her go in and talk to them or call. They have access to do the loans. Honestly, I dont think Ive ever had my credit check for a student loan regarding school. You say shes reached her limit with federal loans.. or are you referrring to the grants they give? Federally loans do have a limit per semester/calendar year which is when the private loans would kick in. But to be sure and verify her options, speak with the Financial Aide Dept. Thats what they're there for.

[SCF]

Talking to the school's financial aid office is a good first step.  They can provide options for her beyond federal loans - she should look into scholarships, as well as any loans that the school itself may offer.  Once she has exhausted everything else, private loans are a last resort.  Unlike federal loans, private loans are given based on the borrower's credit and ability to repay - this is why many students need a cosigner to obtain private loans.

As far as what company to go through, the best thing to do is start searching for options and carefully review the proposed interest rates and terms before you narrow down the field and apply.  Each private lender is different, and offers different options for delaying repayment during school, handling times when you aren't able to pay, etc.  Do a lot of research and make an informed decision, and you should think long and hard before you agree to cosign.  If you can't or don't want to pay that debt off as if its your own, you probably shouldn't cosign the loan.

[jenrenea]

Her financial aid office is the one who told her she'd hit her max on student loans.  They said she can get a PLUS loan if she pursues a grad degree, but her only option now is a private loan.  They suggested a few lenders, like Sallie Mae (which from my research seems to require near perfect credit for the signature loan) or offered her a payment plan she can't afford.  She wasn't eligibile for grants.

[jenrenea]

Oh, I'm not cosigning anything.  I offered her a gift.  I don't do loans for anyone and I won't co-sign for anyone.  She's not comfortable with me gifting it to her at this point.  She'd like to see if she can find another option.