Nov
06

Student Loan deal with Parents?

By
student loan deal

Hi all,

I’m in kind of a pickle. My finaid package came in for school, and I need $16,000 to make up the difference to pay tuition. My parents originally refused to cosign, and since then I’ve been declined loan after loan because i have no credit and no cosigner. Thing is, they agreed to give me $3,000 for the year, but not cosign a loan.
SO, in order to get approved for a loan, I NEED a cosigner. I was thinking of striking up a deal with my parents: Keep the $3,000 as “insurance” for my loan. If I fall back on a payment or can’t find a job 6 mo. after graduating next year, they can use that money to pay the loan if the loan company goes after them.
How does this sound? Would you do it if your child was a senior in college and ready to graduate in a year?
Just some extra info.

I work part-time in the summer and I just got a second job. I’m very savvy with money and save most of what I earn. There is no logical explanation for this other than my parents are crazy.

PS. I already filled out the fafsa and got $7500 in fed loans. And I go to a state school.

Passive Income

Categories : student loan

3 Comments

1

If you still need $16,000 to make up the difference, then you need to pick a less expensive school.

That’s what I’ll probably be telling my son in 5 years.

Going to school is the dream. Paying for it is the reality.

2

If you parents deny such request in the first place, there must be some logical explanation behind their decision. Furthermore, what parents would deny that opportunity to their kid–unless they know for a fact you are careless and irresponsible with financial transactions? Most schools have a program where students pay the tuition on a monthly basis. So, you can save $3000 and get a job (something off the record preferably) and pay as you go. It will be very tough. My advice is keep looking to find another way through some other programs. If you parents reject your proposal in the first place while knowing its for your education, i wouldn’t ask them for a second time. I wish you the best of luck in your search.

3

Look up and fill out a FAFSA. “Free application for federal student aid”. You can get need based grants and federal loans that do not have to be cosigned.

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