need advice on getting approved for a school related loan

[Anonymous]

i am currently attending a school that is going out of business, so i am planning on switching to a different school. the problem is, the new school is in another state, and i will need to get an apartment. the financial aid department told me that they have a loan available specifically for assistance in paying rent and utilities ( there are no dorms) . she said that after i apply for the fafsa the next step is to determine how much  assistance i would need for that loan. my credit score is currently 575, and i am afriad that i would not be approved for this loan, and since i don't know anyone in the city the school is located in, i will definitly need an apartment. to make matters more difficult, the program is very intensive and i won't have much time for a job. i decided to hold off attending untill january 2009, with the intention of using the next 6 months to raise my credit score and save up some money. i tried going to a credit counselor, the one that suze ormond recommends on her website, and they told me to quit school, and file for bankruptcy. PLEASE HELP ME!!! i really want to go to this school, it's very important to me, i just need to figure out how i am going to pay rent while attending. it seems like this loan the school offers is my best and only option. what do i have to do to make sure that i get approved for this loan, by jan 09? i don't have any cosigners, no help of any kind, i am completely alone in this . please someone give me some GOOD advice. thank you in advance for you kindness.

[Anonymous]

You didn't say what kind of school or degree. Need to know but it sounds like you should for-go school for now, get a job, work on your bills and credit score and then go to school. Obtaining a loan for rent is never a good move at any cost! You can go to college in your own state and if your over age 24, file for the FAFSA as an independent student and probably get approved, if you credit score improves.

[Anonymous]

quit school? are you seriously offering that up as good advice? is that the only advice anyone can offer me? i'm not quitting school, what good is that gonna do me, all i can get right now is a minimum wage job, and i'm in my thirties, i am sick and tired of working these crappy jobs, that don't lead to anything. i want a career, which is why i am going to school. so if anyone else has advice that involves quitting, just keep it to yourself.

[smoothjk]

You're in a very tough situation, and unfortunately, you're probably not going to hear any magical fix-all answers (and bashing on people who chime in with suggestions isn't going to help either). If you're dead-set on going to school by 2009 instead of straightening up your financial situation, then the only advice I can offer is to work while you attend. I know you said it's an "intensive" program, but that doesn't justify digging yourself a deeper financial hole. And quite honestly, just because you get a degree doesn't mean you're going to suddenly land a job that pays like a goldmine (unless it's an Ivy League or top tier school). I've known people who have gone to law school full-time at a tier 1 school while working to pay their bills. They are stressed and tired, to be sure, but sometimes it's the only way. And in the end, they manage to come out OK. In the meantime, apply for as many scholarships, grants, and federal/subsidized loans as you can. But don't expect for the loans to cover rent and living expenses. Working is going to be the only way. Oh, and you'll probably need to find a cheap place with at least one other roommate, even if you hate it.

[Anonymous]

It is rare for accredited colleges and universities to go out of business, and while you didn't say so, your post suggests that we may be discussing a for-profit institution like Bryant & Stratton or something like that.  Please be wary of "schools" like this, because employers are, and because these schools are notorious for scamming their students out of money for degrees that are of little use while the students accummulate student loans on par with and exceeding loans for accredited institutions.  The students of these institutions are usually people who can least afford to be scammed--those who are looking to better themselves, and who are not in a great financial situation to start with.

Unless this is some kind of professional school, like a culinary school or an art school, please be careful of sinking any more of your hard-earned (or future) money to a school that could go out of business.

[Anonymous]

There many different ways to get through school, but it's impossible to suggest one without knowing what kind of school, career, length of school, etc. 

[LouMinotti]

Nancy, I just applied for a PLUS loan for my son..the money is for room and board as his tuition is covered by scholarship/grants. PLUS loans cover these kind of expenses since his college-Berklee--only has limited campus housing on a first come first serve basis. From what I understand, the school works in tandem with the federal govt. to offer this Parent Plus loan for students. However, there is also an unsubsidized Plus loan for students called Grad Plus. What you need is a relatively clean credit report, no unpaid collections or derogs and no lates. I assume if you have a CC or two with on time payments and low balances that would be better. I am unsure if you would need to be employed once you attend college although payments begin 60 days after the second disbursement (the loan is disbursed in two equal payments--in the beginning of each semester) As for not going to an out of state college as someone said, that is not always possible since not all states offer specific courses that the student requires. This probably isn't much help, but if there is a will there is a way. You can do this :-)

[SCF]

Nancy, as someone who's sitting on quite a chunk of student loans, I'll be the first to tell you that I think there are times when it's worth it to take out more loans than it seems like you probably should. That said, I agree that you should NOT take out loans to cover basic living expenses.

I think you'll get some more help if you give us a little more background on your situation. What does your credit report look like, do you have baddies that you might be able to get cleared up in a short time for a good score boost? Or a high util that you could pay down before you start school again?

Also, what are you going to school in? Would it be possible to enroll at a community college in an area where you have some family or friends (and could therefore live a little more comfortably/cheaply) and knock off some basic courses while you work, save and repair your credit? It's a slower way, but you'll be much happier with where you wind up at the end.

[Anonymous]

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nancyp wrote:

--- my credit score is currently 575, and i am afriad that i would not be approved for this loan, and since i don't know anyone in the city the school is located in, i will definitly need an apartment. to make matters more difficult, the program is very intensive and i won't have much time for a job. i decided to hold off attending untill january 2009, with the intention of using the next 6 months to raise my credit score and save up some money. i tried going to a credit counselor, the one that suze ormond recommends on her website, and they told me to quit school, and file for bankruptcy.--- thank you in advance for you kindness.

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 My advise would be to hold off attending until Fall of 2009, this is most likely not something you may want to hear but you need to establish yourself financially. If the credit counselor said to quit school and apply for BK then you need to straighten up your finances asap. Taking on more debt is not the answer and believing that you'll come out (of school) making a ton of money is an illusion. The time to fix things is now and making the hard choice will only be much harder later.

[Anonymous]

thanks for all the advice, it make me feel like things are not hopeless.