Impossible to get a student loan? (credit card, debt, pay, financial)

[unsmicck]

I left a bank a while back, because I moved. When I left the bank I took money out. I thought I was good, but apparently some of the stuff I thought I did as debit, was actually run as credit. I applied for a credit card recently and was turned down. Surprised by this, I asked why..? Turns out I owe the bank I left 3 years ago about $500 about $350 of it is overage charges, and the rest is actual money spent. I am working towards paying it back now.

With that information, I am 22, and going to college, would it be impossible for me to get a student loan? should I even try? what should I do, "O wisened, and spectacular money gurus out there?"

[HSVbulldawg]

1. Have you settled the debt with your former bank? I would start there before doing anything else.

2. I don't know how it will affect your ability to get a loan. You should be able to talk to someone in financial aid at the school you are planning to attend. This person should be able to give you correct information specific to your situation. The best that people on this forum can do is guess or give you general guidelines. Commercial loans might have competitive rates. However, I have a locked in 1.8% interest rate on my current student loan, which was a government loan.

3. Are you going into a major that will give you good job prospects upon graduation? If not, or if you haven't decided on a major, then skip the loans. The only time you should take out a loan is if you are going into a major that will enable you to earn a decent income when you graduate. Otherwise, work your way through college. (If you can't work your way through - and yes, this is still possible depending on the school you are going to - then you should go to a different school.) My major had excellent job prospects, which is why I felt comfortable taking out the loan. I had other friends who went into debt and ending up working a job that only required a HS diploma upon graduation (and still were years later.) Financially, you are further behind if you end up in this position than if you had never gone to college.

[HSVbulldawg]

Credit Crisis will Affect Student Loans

It looks like credit does affect your ability to get a loan, but you need someone from your financial aid process to give you specifics about how your score will affect your ability to get a loan.

[TomMoser]

You should at least be able to get a Federal Stafford Loan. Your first step is to fill out a financial aid application. Go to www.FASFA.gov.

[cjma79]

Originally Posted by unsmicck

I left a bank a while back, because I moved. When I left the bank I took money out. I thought I was good, but apparently some of the stuff I thought I did as debit, was actually run as credit. I applied for a credit card recently and was turned down. Surprised by this, I asked why..? Turns out I owe the bank I left 3 years ago about $500 about $350 of it is overage charges, and the rest is actual money spent. I am working towards paying it back now.

With that information, I am 22, and going to college, would it be impossible for me to get a student loan? should I even try? what should I do, "O wisened, and spectacular money gurus out there?"

If you are talking about federal student loans, your credit is not a factor, even if you have the worse credit in the US you should get federal loans.

[HSVbulldawg]

Stafford loans are not available for all schools though. So, your ability to get a loan that is need based depends on where you are going to get your degree. I would say that you still need to talk to the financial aid at your school to know the options available to you and whether or not those options are affected by your credit.

[user_id]

As someone else mentioned, federal student loans are given out regardless of your credit score. That comes with a cost though, the loans are near impossible to get discharged. Don't pay them and they will ruin your credit for the rest of your life.

[unsmicck]

What do you mean discharged?

and, I would be going to University of Texas at El Paso, would the loan be available there?
And, I did do the fafsa recently, it said that my SAR (student aid result) was available, I could not see if I was awarded anything, does that mean I was not, or does it just vary by school?

[user_id]

Debt can be "discharged" in a bankruptcy, that means essentially you are no longer obligated to pay it. Student loans are very very hard to discharge. If you don't pay them they will haunt you for your entire life.

Federal loans are available to the University of Texas, but federal aid is based in part on your income or if you are young your parents income. Its been years since I've dealt with a FAFSA so I can't say much about the SAR. I'm sure you can either call them or the university for more information.

[gea12345]

Originally Posted by unsmicck

I left a bank a while back, because I moved. When I left the bank I took money out. I thought I was good, but apparently some of the stuff I thought I did as debit, was actually run as credit. I applied for a credit card recently and was turned down. Surprised by this, I asked why..? Turns out I owe the bank I left 3 years ago about $500 about $350 of it is overage charges, and the rest is actual money spent. I am working towards paying it back now.

With that information, I am 22, and going to college, would it be impossible for me to get a student loan? should I even try? what should I do, "O wisened, and spectacular money gurus out there?"

Yes, of course you can get a student loan!! Stafford loans have nothing to do with private educational loans!!