Roger
Guest
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| Posted: Wed Jul 07, 2004 12:56 am
Post subject: Financing College with No Credit |
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In a nutshell, son is getting ready to go to college and has sites on
something more than a community college.
I am currently unemployed and wife is ill, so can't work. Our savings are
zero, we have about $5k in IRA's and are not making enough in unemployment
to make ends meet. Credit history is getting better but is not perfect
because of a failed business six years ago.
What are the options? FAFSA says we owe the first $7,000 because of my
income last year, but we don't have it. Is there somewhere our son can go
to get loans/grants?
Thanks for the help.
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Steve Blank
Guest
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| Posted: Wed Jul 07, 2004 1:29 am
Post subject: Re: Financing College with No Credit |
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Roger wrote:
| Quote: | In a nutshell, son is getting ready to go to college and has sites on
something more than a community college.
I am currently unemployed and wife is ill, so can't work. Our savings are
zero, we have about $5k in IRA's and are not making enough in unemployment
to make ends meet. Credit history is getting better but is not perfect
because of a failed business six years ago.
What are the options? FAFSA says we owe the first $7,000 because of my
income last year, but we don't have it. Is there somewhere our son can go
to get loans/grants?
Thanks for the help.
|
First, contact the college financial aid office to make them aware of
your situation. They can, but don't have to, adjust your FAFSA data to
account for the discrepancy bewtween 2003 income and projected for 2004.
If they do adjust, it can reduce the EFC and maybe they'll also increase
the financial aid awarded. What they are willing to do in extra aid will
depend on the quality of the student.
Beyond the financial aid that the school may provide, which will include
Stafford (and maybe Perkins) loans in the student's name, the family has
to find the rest.
This would normally be loans the parent takes out. The easiest to get is
the PLUS loan. It doesn't look at income as most others would, but it
does look at credit history and if they hold that bankruptcy against you
then you might not get it. But apply for the PLUS because if they turn
you down then your son automatically is eligible for another $4,000 in
supplemental Stafford loan.
Any commercial loans that your son tries to get will require a co-signer
and if you don't pass the PLUS, you won't qualify as a co-signer for
those others.
If you don't get the PLUS, or the extra $4,000 Stafford isn't enough,
then you may have to consider a less expensive school, including
community college, for at least the first year. There's nothing wrong
with that.
--
Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761 |
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No One
Guest
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| Posted: Wed Jul 14, 2004 4:23 pm
Post subject: Re: Financing College with No Credit |
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Go to community college for the first two years -- you'll save a ton of
money and can transfer smoothly into a quality 4 year school. That's my
advice. I hope it works out for you.
"Roger" <rwink@frontiernet.net> wrote in message
news:xBCGc.45$Wz.39@news01.roc.ny...
| Quote: | In a nutshell, son is getting ready to go to college and has sites on
something more than a community college.
I am currently unemployed and wife is ill, so can't work. Our savings are
zero, we have about $5k in IRA's and are not making enough in unemployment
to make ends meet. Credit history is getting better but is not perfect
because of a failed business six years ago.
What are the options? FAFSA says we owe the first $7,000 because of my
income last year, but we don't have it. Is there somewhere our son can go
to get loans/grants?
Thanks for the help.
|
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