Information regarding student loans all together

[RuthLugo]

I am writing on behalf of my son, who is now in his 2nd year of college. He has just informed me that he will not be able to continue college, cause he will not meet the financial part of it. He states he was granted the maximum for the Stafford and the other one. His parent-plus was denied due to his father's bad credit. I am not working, and though I have excellent credit, don't think I would be approved. I have several questions.

1) can my son take the parent-plus loan without a co-signer.

2) if not, can I co-sign for my son even though I am currently unemployed and in college as well.

3) How will this affect my credit, if my son defaults in the parent-plus loan.

4) What other choices does my son have if No. 2 is not allowed/approved and does not have a co-signer with good credit. Please help!.......I don't want my son to quit college.

[chane]

He should be able to get the loan with a co-signer. You should all pull your credit reports and start repairing your credit.

You can start here:

Basic Step by Step Beginner's Guide to Credit Repair

or you can call or visit Lexington Law - 1-800-220-0084 for a free credit consultation.

[RuthLugo]

Hi Chane,
Unfortunately for me, you didn't answer my questions. Nor do I think you read thoroughly my message. I don't have bad credit; I am unemployed! His dad is the one with bad credit; we don't live in the same state/country. Son lives in USA, I live outside; Puerto Rico. So he has to have a co-signer, regardless? Can grandma co-sign for him? She has an income?

[chane]

I misread question #1. I thought you said "with" a co-signer. Still, his father needs to repair his credit.

Student loan laws and procedures change all the time and are different from school to school. I haven't kept up with them and I doubt anyone here has either, but I will still try my best to answer your questions from my experience.

1. I honestly don't know, but I doubt it.

2. Again, I don't know, but I doubt it. They usually want to see an income. The only way to find out is if you try or maybe the financial counselor will know.

3. It will be very bad for anyone's credit who co-signs, if he defaults.

4. Grandma might be able to co-sign for him.

Sorry, I'm not able to help you more. Your best bet is talking to the financial counselor at the college. They will be able to give you the best answers.

[markmargolis69]

Originally Posted by RuthLugo

I am writing on behalf of my son, who is now in his 2nd year of college. He has just informed me that he will not be able to continue college, cause he will not meet the financial part of it. He states he was granted the maximum for the Stafford and the other one. His parent-plus was denied due to his father's bad credit. I am not working, and though I have excellent credit, don't think I would be approved. I have several questions.

1) can my son take the parent-plus loan without a co-signer.

2) if not, can I co-sign for my son even though I am currently unemployed and in college as well.

3) How will this affect my credit, if my son defaults in the parent-plus loan.

4) What other choices does my son have if No. 2 is not allowed/approved and does not have a co-signer with good credit. Please help!.......I don't want my son to quit college.

1. Unless he has good credit, and a steady income, I don't believe he can take the parent-plus loan.

2. I believe that depends on the lender, If you have good credit that is a plus, but no source of income makes the lender feel unsecured. Again, that depends on the lender.

3. Your credit will be affected negatively, regardless of his experience with this type of situation. Once you put your name on something, you are equally bound to it.

4. Has he tried using financial aid? Has he tried getting any grants? there are many ways to work around it, you just have to find them. Try scheduling a meeting to talk to a financial counselor to see your options.

Don't give up, and make sure your son doesn't either!