Comments

1. 
   On August 06, 2010 lugnutgirl says:

   First of all, I commend you on wanting to be independent. That takes guts! Secondly, if you absolutely HAVE to take out a student loan, for your own sake make it as small as you can get away with. Loans have a way of coming back and haunting us — you never know what your future will hold, or if you will be able to afford that monthly payment when it comes due.

   That said, do you have a relationship with a financial institution? They may be your best first step, since they already know you. You might also check with your parents’ bank — even though you are stepping away from them financially, the fact that you are trying to keep your business located at a place where your folks are known might help in getting your approval.

   Whatever you do, deal with someone who has been around for awhile. I cringe every time I see a commercial on TV for student loan companies — they promise “simple money,” but don’t tell you about the exorbitant interest rates they will charge you later.

2. 
   On August 06, 2010 NotAnyoneYouKnow says:

   M:

   Take a deep breath, and make sure that you know the obstacles that you’re setting yourself up for.

   Let’s start with the simple question – have you completed the Free Application for Federal Student Aid, the aid application better known as the FAFSA?

   If you haven’t, then that’s probably the answer of your dreams, right there. Complete the FAFSA, and you will become eligible to borrow up to $7500 from the government-backed Stafford lending program. The Stafford is designed to provide a cheap and simple source of borrowed funds for US college students – the interest rate on a Stafford is low and fixed, and the lender won’t question you any questions about your income, your credit history or your debts. You don’t need a cosigner, and your repayment doesn’t start until you’ve been out of school for 6 months.

   If $7500 solves your problem, get that FAFSA application filled out at http://fafsa.ed.gov and you won’t have any distress getting a $7500 loan.

   Now, earlier, you might remember that I mentioned “obstacles”. If that $7500 is not going to solve your problem, or if you already receive that $7500 and you’re looking to supplement that – well – then you have a problem.

   I can know that you’re asking about a private loan so “innocently” as if it’s just a matter of picking which of 40 lenders might give you the best deal, but that’s only because you haven’t done this before.

   Yes, a few years ago, that is pretty much how it worked. There were a lot of student lenders, and they competed with each other to attract borrowers.

   That’s not how it is any more. I know you’re read about the worldwide banking and lending crisis – well, welcome to “How does that affect me?”. It affects you because there are now, literally, a tiny handful of lenders who even accept student loan applications – and they are ALL ultra-conservative in their lending practices. There are no legitimate lenders who will lend you $10 or $15 or $20,000 a year despite the fact that you have no job, no assets, and no credit history.

   If you want a loan like that, you’ll need to offer the lender a very highly credit worthy cosigner – someone who does have a fantastic income and a well-established credit history, lots of assets, and not a lot of debts. Because you sound so determined to declare independence from your parents, I’m guessing that you won’t be looking to them to become your cosigners.

   So – long answer small – if you need $7500 and you’re not already taking advantage of the government’s Stafford program – complete the FAFSA and you’re all set. If you need more than what the Stafford program will offer you – then you’re asking the incorrect question, in terms of “who’s the best?”. There is no “best” in that situation, because it’s unlikely that you’ll find a lender who will approve you for an educational loan – unless you have a cosigner.

   Excellent luck to you!