Once upon a time, I had decent credit and was able to get a student loan through US Bank/Great Lakes. That was two years ago. Now I'm applying once again, only to Sallie Mae, and I can't get a loan without a co-signer. The problem is, I don't have anyone to co-sign for me. My parents and I had already established that they wouldn't go down that road, so I have no options. I check my credit score on Experian (via www.freecreditreport.com) and it's a 587. I royally screwed myself over two summers ago when I became poor and couldn't pay my bills. I'm still poor - I'm a student working part time, what is to be expected? I have a chargeoff from a Capital One card, and some lates on a US Bank Credit Line (I just got on a payment plan with them). The other stuff is an Old Navy CC that my mom has me on and is paid on time every month, and my Direct Loans and Great Lakes loan, both which are fine since I'm in school.

I'm at a loss. Does anyone have any ideas? I know it's my own fault.

Are you maxed out your allowance of staffords?? They are not credit based so you dont need good credit to get them. Also, have you talked to your financial aid officer? Sometimes there are other sources that they have access to.

Thanks for your input. I am maxed on Stafford Loans for the year. It's $5500/year. I'll swing by the financial aid office on Friday and see what they have to say - hopefully they'll be able to help me out!

Thank you!

Sallie Mae doesnt want to see any unpaid charge-offs. They will let the charge-off "slide" as long as you can bring it down to a zero balance.

If you need to get your loan soon, I would suggest you call to make a settlement to whoever you owe. Once you agree on an amount to be paid or "settled in full", pay them asap. Ask them to email/fax/mail you a letter stating that you've paid them in full right away. Then fax that letter into Sallie Mae for reconsideration. They will not pull a new cr. They'll just use your letter as a "clearing document". As I understand it, any late payments you have, as long as they were in the last few months, will be ok too.

The other thing you could do as well, since Sallie Mae pulls EQ cr, is to place your negatives in dispute for the score boost, as well as getting the clearing documents showing proof of payment down to "zero" balance, and then ask the Sallie Mae rep to go ahead and pull the new report. (*Note, you should pull it FIRST to ensure that the derogs are actually marked as being in dispute, and view your new score).

In doing this, plus being super nice to the Sallie Mae rep and pleading that you have no co-signer to help you, they will likely reconsider and change their original decision.

Remember, their key ingredient is NO UNPAID CHARGE-OFFS! If the oc is still posting a balance unpaid, dispute and fix that too, not just the ca's.

jc

*Just thought of something else...Always remember that if you are getting aggrivated or frustrated with the cust svc rep on the phone, politely get off the phone from them, wait a little while, and call back! You'll probably end up with a diff person the 2nd time around. If you recognize the name or voice, hang up again! Sometimes a bit of fresh air and a new rep can make a WORLD of diff in how things turn out! Good luck!

jc

Another option would be to ask your parents about a parent PLUS loan. The good and the bad: their credit has to be acceptable as PLUS loans are credit based. If one parent gets turned down for the PLUS loan, you can get the additional $5000 in an unsub stafford loan as though you were an independent student.

Also ask your financial aid office if you qualify for a Perkins loan. This is also a student loan, don't have to be credit worthy and it's awarded to the student.

Forgot about that! Also are you dependant or independant status for financial aid purposes? Generally if you are 23 or above you are deemed indenpendant.
If your parents are refusing to assist with financial costs of your education, you can apply to your school to become Immancipated....that is changed from dependant to independant status. Again, talk to financial aid.

The student stated she is maxed out at $5500. Tells me the student is dependent.

Why would a student not want to persue a parent PLUS loan? The rates are attractive and if a parent is denied, the student qualifies for additional unsub. What would be wrong with a Perkins loan? If the school has Perkins funds and the student has unmet need, that may be an option as well.

Either option is better than attempting a Dependency Override.

If the parent applies for the Plus loan and is approved, and still refuses to do it, the student cannot apply for the dependancy override. Parents have already said that they wont help.

Perkins are generally offered in the initial package, if the student has need. If wouldnt hurt to ask, but often this time of year, Perkins have run out.

I'll be 23 in April, so hopefully on next years' I can be considered an independent.

Unfortunately, paying off the chargeoff is impossible at the moment.

My parents don't want to take out a loan on my behalf since they have enough debt already. I don't doubt that they would get approved - their credit is pristine.

I'm definitely going to go by the Fin Aid office after class tomorrow, to see what my options are. I have $5000 of unmet need, so hopefully I'll be able to figure something out.

Thank you all!

$5000 in unmet need is enough to score you some Perkins money if they have any available. Will think good thoughts for you tomorrow. I know how tough it is to pay for this on your own.

Basically, the financial aid office said "That sucks." There isn't anything they can do for me, but that I should exhaust all possiblities with Sallie Mae to get them to let me have it (which is sounds like they WON'T since I can't pay that chargeoff or even settle it for a reasonable amount). If I can't get it, they suggested I try a bank like Key Bank, who would be more likely to give me one at a higher interest rate since I have been determined to be a high risk. They also said I can't be independent until I'm 24, so I can't use that resource.

*SIGH*