Loan Woes

May 15, 2008 4:12 AM

My partner and I need to acquire a loan for her grad school. The catch(es): She's not a citizen. We're gay. We don't have the first clue how to go about doing this. Help!

My partner is from Canada. A Canadian loan is out of the question. (Period! Don't even suggest Canadian student aid...it won't help!)

She has one year of grad school left, which will be around $30,000. I make a pretty good living here in the midwest (less than triple digits, but not substantially less), though the two of us must live on my single income, but paying off the loan shouldn't be too difficult. We're young. My credit is right there in the middle, not great, not wonderful.

I've never done this before. Please explain how to prepare, what I can expect, who I should ask (my bank? other lenders?), what criteria makes a lender more likely to approve a loan, should we ask for a personal or financial loan, and if we have a chance in hell of pulling this off, given the current economic climate. I am a babe in the woods, please be kind, and my one caveat must be: please do not pass judgment on our situation, financially, emotionally, or otherwise.

Thanks in advance for your help. It is much needed and much appreciated.

posted by anonymous to work & money (12 comments total)

Her college will have a financial aid office and probably an international office. Talk to them. You don't have to be a citizen to be eligible for U.S. financial aid, but even if you aren't, they should be able to answer your questions and point you in the right direction.
posted by grouse at 4:38 AM on May 15, 2008

you need to borrow about one third of your yearly income, if your job position is reasonably solid I don't see why your bank should turn you down; and when your partner in a year finishes school and gets a job she'll be able to help you out with the payments.
posted by matteo at 4:38 AM on May 15, 2008

I don't mean to offend...but the FIRST thing that comes to mind is:

You are effectively tying your financials with that of another. Because you are gay, and the US kinda sucks, a lot of states don't have domestic partnerships and such.

Even though I'm sure you're in a very loving and committed relationship, you should just think "what would happen if we broke up or something...would the financials be cut and dry...or should we set plans beforehand".

Sorry about the ugliness...moving on. Well if you are comfortable with it, why not just pay it from your salary. Both of you guys should live like college students (minus what is necessary for work like clothes, reliable transportation, etc). That should save you tons of money. You need not live in an awesome house or an awesome apt. You could live on or around campus...

If you are FIXED on getting a loan, I'm sure a bank will give you a portion of the 30K as a personal loan. And the thing is...you don't need to pay the $30K in one installment. I don't know if the school system is on quarters, semesters or what...but paying 8K 4 times a year, is a LOT easier than $30K at once. Find out about that.

Also...why is your credit "right in the middle". It seems as if you're setup to have great credit (pretty good living, paying off the loan shouldnt be difficult). If you have some outstanding stuff....take care of it. Lower your debt to credit ratio. That would DEFINITELY help in getting a loan. And seriously...if you are making CLOSE to $80K, you should be living very comfortably. PAY OFF THE DEBTS. You didn't mention a house or condo, which makes me think you don't have one, and you rent. Where is your debt? If you are getting paid 80K, and are carrying around non-mortgage debt...you should figure out how to cancel that debt asap. You have the means...you just need to execute.

Good luck...I mean it!
posted by hal_c_on at 4:39 AM on May 15, 2008

Seconding the school's financial aid office. It exists for exactly this reason.
posted by Dec One at 4:53 AM on May 15, 2008

Thirding grouse with one slight caveat. Your partner is eligable for private financial aid, but public funds, not so much. Loans on the other hand are not considered aid under the law and she will be eligible as if she were a US citizen (depending on the lender).
posted by Pollomacho at 5:48 AM on May 15, 2008

Your partner is eligable for private financial aid, but public funds, not so much.

There's not enough information in the question to make this conclusion. Certain noncitizens are eligible for financial aid. For example, people with green cards.
posted by grouse at 6:01 AM on May 15, 2008

She can probably get private loans. Try the big banks like Citi, and sites like
gradloans.com. If you are willing to co-sign and your credit is good, the rates on private loans might actually be lower than on federally backed loans.
posted by Mr Bunnsy at 6:18 AM on May 15, 2008

If you've never done this before, how do you know Canadian student aid won't help?
posted by electroboy at 7:12 AM on May 15, 2008

Just to follow on from electroboy, there could be another reason for her ineligibility for Canadian student loans (ie, she defaulted on a previous loan, or was found misrepresenting her income when applying for one). If however this is not the case, then (certainly in Ontario at least) provincial student loans will pay up to $7000/year for study at a recognised non-Canadian institution.
posted by modernnomad at 8:04 AM on May 15, 2008

Citibank gives loans to international students with a U.S. citizen co-signer. Go to studentloan.com, sign up for a loan for your partner and then be her co-signer. Easy peasy.
posted by k8t at 10:23 AM on May 15, 2008 [1 favorite]

Your partner is eligable for private financial aid, but public funds, not so much.

There's not enough information in the question to make this conclusion. Certain noncitizens are eligible for financial aid. For example, people with green cards.

Actually, there is plenty of information! She has no income, meaning that she doesn't have an employment-based greencard. She's gay, so she therefore doesn't have a family-based green card (unless she's a very young grad student). She's Canadian, which means that she's not an asylee, refugee or parolee. That makes her anonther form of non-immigrant, and therefore ineligible for public fund scholarships.
posted by Pollomacho at 10:11 AM on May 27, 2008

She's gay, so she therefore doesn't have a family-based green card (unless she's a very young grad student)

I think you misunderstand the green card program. I personally know people who are in their mid-20s, yet have family-sponsored green cards.

Regardless, my original point was this: you aren't necessarily ineligible for U.S. financial aid just because you are not a U.S. citizen. It would be a real shame if she happened to be eligible yet did not pursue this option because she was told by people on the internet that she was not without knowing the whole story. The best place to start is to go to the experts who are paid by your university to help you. The first thing they will want to do is determine whether you are eligible for financial aid, and if you aren't they will have helpful information on other options.
posted by grouse at 10:28 AM on May 27, 2008