Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Does anyone know of ANY private loans that are still paid directly to the student instead of being processed through the school? My community college doesn't deal with private loans...
the government loans that are offered give out WELL above the amount needed.
It depends on where you live, whether or not the regular loans offer barely enough, or well above what you need. In Southern California, it can be difficult to live on what is offered.
That said, I definitely agree that private loans should be avoided in almost all cases. Particularly if they require a co-signer, which most do, unless you're working full-time. It's not fair to drag your parents or grandparents into a loan that cannot be discharged in bankruptcy, if you can't pay it. Do you really want your grandma's social security docked, because you lose your job? Or you can't find a job? Or you flake out?
It depends on where you live, whether or not the regular loans offer barely enough, or well above what you need. In Southern California, it can be difficult to live on what is offered.
SoCal has some of the best priced community colleges in the nation. You don't find much cheaper. Loans shouldn't be used for living, they should be used for your tuition. The less you have in loans, the better. It is very easy to take them out, but very difficult to pay them back.
It is not that hard to work while you are in college. Thousands of students do it, there's no reason to take out loans for living expensese.
I don't mean to be a preacher or anything, but man.. if there's one thing I regret in college were those couple years I spent not doing any work and buildig up debt, it isn't fun to think about!
Student loans from the federal government cannot be discharged in bankruptcy either. And the federal government will be far more aggressive (because they can) then private loans about collecting if you fall behind, taking all of your income tax refunds, garnishing your wages (up to 15% of your take home pay, ouch), suspension of professional licenses (figure that one out) etc. My biggest regret about college is borrowing from the federal government, as I am unable to lower the principle on my loan due to my income, which due to how crummy the economy is is very low.
My advice, avoid all loans especially if you plan on a major with few job prospects (like any liberal arts major). Loans should be for professional programs only with good prospects, because you will not be able to afford the loan payments after school if you major in something like English. Borrow from family or friends if you can. If you have to do liberal arts, pay as you go, if you can't, you can't afford that degree.
People make you believe that federal student loans are a good thing. They really aren't that great.
The federal government is also far more generous in giving you deferments if you cannot pay though; something the private lenders almost never do. They gave my wife almost 6 years in deferments without asking (we kept paying anyway as if the deferment was not in place). That is the main advantage to federal loans.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
