Student looking to settle debts so he can study abroad
April 8, 2011 4:21 PM Subscribe
I am a US citizen enrolled in a California State University and am signed up to spend the next year studying abroad in Europe. Before this happens I need to settle about $10,000 worth of debts and deal with a car payment. The foreign university needs me to show a bank balance of about $15000 to cover expenses for the year and I am wondering what kind of student loan options are available to settle debts and show proof.
The deadline for producing the financial proof is earlier than I will be receiving federal financial aid and scholarships, which puts me in a bit of a bind...
I have the car situation covered but it's looking like private loans are going to be needed to produce the necessary bank balance and pay off the credit cards. Is it possible to get a student loan above and beyond "necessary expenses" so that I can have my accounts settled before I leave? SallieMae and others want information on my federal aid amounts and it looks like those loans are calculated on estimated financial need.
It's gonna be a heavy price in the end but given this opportunity I think it's a price worth paying. I am an intelligent person with in-demand skills (programmer/IT) in Southern California so I am not worried too much about the job situation when I get back. I fully intend to pay back every penny I owe but I just need to defer all that by a year or so.
The deadline for producing the financial proof is earlier than I will be receiving federal financial aid and scholarships, which puts me in a bit of a bind...
I have the car situation covered but it's looking like private loans are going to be needed to produce the necessary bank balance and pay off the credit cards. Is it possible to get a student loan above and beyond "necessary expenses" so that I can have my accounts settled before I leave? SallieMae and others want information on my federal aid amounts and it looks like those loans are calculated on estimated financial need.
It's gonna be a heavy price in the end but given this opportunity I think it's a price worth paying. I am an intelligent person with in-demand skills (programmer/IT) in Southern California so I am not worried too much about the job situation when I get back. I fully intend to pay back every penny I owe but I just need to defer all that by a year or so.
Unless you can borrow off the books from a relative I don't see how shifting debt from one account to another even helps you look better on paper.
They usually don't require anything like a credit check for a student visa, though: they just want to see a piece of paper that proving you have $15k in a bank account, regardless of debt. They want you to prove your ability to pay, not your net worth.
If it's an option, they may also accept a bank statement or such proving that your parents or whomever have that sort of cash and are able to bankroll your endeavour (even if they never in fact do, or never even intend to -- they just have to be willing to claim it).
posted by astrochimp at 5:17 PM on April 8, 2011
They usually don't require anything like a credit check for a student visa, though: they just want to see a piece of paper that proving you have $15k in a bank account, regardless of debt. They want you to prove your ability to pay, not your net worth.
If it's an option, they may also accept a bank statement or such proving that your parents or whomever have that sort of cash and are able to bankroll your endeavour (even if they never in fact do, or never even intend to -- they just have to be willing to claim it).
posted by astrochimp at 5:17 PM on April 8, 2011
I used to have to prove a bank balance of 10,000 Euro every year to renew my student visa. Everyone I knew who had parents with that sort of money (or able to get hold of that sort of money) would just get them to temporarily transfer it into an account with the student's name on it, get a bank statement, and then take the money back. The bank statement was sufficient proof for the authorities. (Unfortunately my parents never had a spare 10,000 Euro lying around, but maybe this is an option for you?)
posted by lollusc at 6:49 PM on April 8, 2011
posted by lollusc at 6:49 PM on April 8, 2011
Is it possible to get a student loan above and beyond "necessary expenses" so that I can have my accounts settled before I leave? SallieMae and others want information on my federal aid amounts and it looks like those loans are calculated on estimated financial need.
The term you are looking for is called your "Cost of Attendance", which is calculated from an estimate of your semester/yearly tuition, fees, and estimates for room and board and other expenses. A majority of student loans must be certified by your school -- this includes the federal loans, but it also includes most other private loans from the big banks or the sallie mae program. The only way to get student loans approved for above that COA figure is to do an appeal with your school's financial aid office. I can't imagine that this situation would not qualify for an increase in your COA figure.
So, if you're going the student loan route, you will need to look for a loan that doesn't require School Certification -- meaning the lender won't care whether or not your are at your cost of attendance or not.
In any case, I would call your financial aid office and see if they can go over some options with you.
posted by Think_Long at 9:16 PM on April 8, 2011
The term you are looking for is called your "Cost of Attendance", which is calculated from an estimate of your semester/yearly tuition, fees, and estimates for room and board and other expenses. A majority of student loans must be certified by your school -- this includes the federal loans, but it also includes most other private loans from the big banks or the sallie mae program. The only way to get student loans approved for above that COA figure is to do an appeal with your school's financial aid office. I can't imagine that this situation would not qualify for an increase in your COA figure.
So, if you're going the student loan route, you will need to look for a loan that doesn't require School Certification -- meaning the lender won't care whether or not your are at your cost of attendance or not.
In any case, I would call your financial aid office and see if they can go over some options with you.
posted by Think_Long at 9:16 PM on April 8, 2011
This thread is closed to new comments.
Also, as a student with (I'm assuming) little to no current income, nobody is going to loan you money to pay off credit cards. Are there scholarships available, or maybe work-study while you are over there? More debt is not your answer, and quite frankly, probably isn't realistically possible.
posted by COD at 4:42 PM on April 8, 2011