Private Student Loans

September 30, 2009 1:35 PM

Help me figure out my options for a small (~$4000) student loan.

First of all -- forgive my noobish questions here. I am new to student loans and this whole process is getting overwhelming. I can't find previous AskMe questions that are particularly relevant, but if there are other pages that will answer my questions, feel free to direct me there.

I'm in my fifth (and final) year of my undergrad degree and have to take out some loans to cover part of my last year. I need about $7000 and I qualified for (and received) $3500 of subsidized Stafford loans, leaving me with another $3500 that I'll need to acquire through a private source.

What are my options for the private loan? I assume that I should be looking at credit unions first. The first one I visited today (WSECU) doesn't offer student loans, and BECU directed me to their online application, which says I'm ineligible for a loan unless I co-sign with my parents, as I make less than $3000 a month.

While I don't have a big problem having my parents co-sign a loan, I would much rather do this without them if possible, for practical and personal reasons. I have a pretty good credit score in the low 700s (no credit cards, one $4000 car loan that is almost completely paid off, always made payments on time, etc).

What this boils down to is: am I likely to run into the same restriction that BECU placed on me if I go to other credit unions? My gut tells me to avoid large banks, but should I be looking at Chase (my main bank) or other large institutions? What about Fannie Mae or other companies that specialize in loans like this?

posted by rossination to work & money (7 comments total)

Did you qualify for any unsubsidized loans? When I was in undergrad and graduate school I was able to cover what I needed by mixing the two. The unsubsidized part just means that they accrue interest while you're still in school.
posted by Kimberly at 1:47 PM on September 30, 2009

Thanks, Kimberly. I did not qualify for any unsubsidized loans, no. At first I did, but then they factored in some other scholarship money I was receiving and they took that option away.
posted by rossination at 1:49 PM on September 30, 2009

Have you asked your financial aid office for help? It sounds like you're trying to go this alone, which I don't tend to think is the best idea with student loans. For instance, my private lender gave me a better rate because I went through school than I would have received had I used the same lender but applied on my own. Good luck!
posted by Admiral Haddock at 2:00 PM on September 30, 2009

I have used the Access Group for a private student loan (now in repayment). If you haven't checked with your school's financial aid office, try them for recommendations.
posted by exogenous at 2:01 PM on September 30, 2009

Talk with your school's financial aid office. They deal with this sort of thing all the time, and probably have a list of recommended lenders.
posted by chrisamiller at 2:55 PM on September 30, 2009

Where are you going to school, rossination? You've referenced Seattle/Washington-area banks. The U? If so, have you checked out their Short-Term Loan Program? You can borrow up to 2,500 a quarter directly from the school - due the following quarter without a co-signer. Keep in mind you are only able to take out the loan for a short period of time, but it's good to be able to pay the bills while you figure out what your options are.
posted by handabear at 3:44 PM on September 30, 2009

Did they also exclude Federal PLUS loans? They're credit-based, but with a much, much lower interest rate than you can get most other places (7.9% typically).
posted by eleanna at 6:14 PM on September 30, 2009