How can I pay for my summer class?

May 6, 2013 10:03 PM

I need to take a summer course as a pre-requisite for professional school. Course will not count towards a degree, deeming me ineligible for stafford loans. What are my student/personal loan options?

The class costs ~$5500. My parents will pay for some part of it-- $3000 in an absolutely ideal situation, $1000 at worst. So I am looking at a difference of $2500-$4500 that I need to cover somehow.

Can I take out a student loan for just one class?? How would I even go about that? Would I go to the bank? A credit union? Private student loans? When would I have to pay it back?

Other details: I have $40K student debt from undergrad, all in subsidized/unsubsidized federal stafford loans. I may not have time to work for the 6-8 week period of time that the class is, as it is an 8-credit very demanding course and meets at least 20 hours a week. I plan on looking into hostessing gigs etc. to see if I can find a source of income that accommodates my schedule. Thus, any input on cost of living considerations I should be thinking about will be welcomed.

Credit score is high 600s with no collections, late payments, etc. Have been making a concerted effort to pay off CC debt-- I've cut it down almost halfway over the past few months and am hoping to be debt free (minus student loans, of course) by September.

Oh, one more thing-- tuition payment is due May 20. I'm guessing none of the lenders will be able to get the funds to me that quickly (can they?) If I pay for the course with a credit card, could the lending agencies reimburse me, or does the loan have to be applied directly to the tuition by the lender?

posted by DayTripper to Education (7 answers total)

Best answer: When I was in a similar situation (but with a higher credit score and low but stable income), private student loans were out since the course wasn't part of a degree program even though I needed it to get my degree. I applied for a personal loan with my local credit union. I was approved on the spot after a five minute interview, with the ability to write checks for the full amount (well, online bill pay since I don't have physical checks) then and there. They claim the decision takes four hours at most if one applies online instead of in person. I could have also paid with a credit card (but those typically incur convenience fees for things like tuition) and then paid off the card balance with my new personal line of credit. Could your parents or someone else who is close to you co-sign for the loan?
posted by halogen at 12:16 AM on May 7, 2013 [1 favorite]

A lot of these questions are specific to the institution you are going to take the class in, so you should talk to them irst.

The feds do make exceptions to allow for non-degree students taking prerequisite programs to get some fed loan aid, but it's up to your school as to whether they will allow for it or not. Also you will need to be registered at least half time for it, which one course is usually not enough to meet.

One thing I'm concerned about: is this an undergraduate level course? How on earth can the tuition charge for one class be $5,500? What is the per credit tuition rate at the place you're going?

Unless it absolutely has to be this class at this institution, I would recommend you find another institution in the area that offers the course at a lower tuition rate.
posted by Think_Long at 6:35 AM on May 7, 2013

Agreed with Think_Long. My current graduate tuition for three courses a semester is about $6000. $5500 for one undergraduate-level course sounds absurdly high.

I would definitely see if there are other options for completing this course, that your professional degree program would still accept as a pre-requisite.
posted by augustimagination at 8:25 AM on May 7, 2013

I can't offer any advice on the actual question but I wanted to point out that the $5500 is for 8 credits, which is the equivalent of almost three classes (assuming a standard system where one semester-long class that meets 3 hrs/week = 3 credits). The quoted rate is not unreasonable at all; I think it's about what a large state university will charge per credit for an upper level undergraduate course.
posted by ootandaboot at 2:10 PM on May 7, 2013

Response by poster: Thanks for the advice!

halogen-- I don't really have anyone that could co-sign for me. You think I'd get flat-out denied or just be offered a higher interest rate? How do I find a credit union?

Think_Long-- the course is 8 credits (it's sort of a hybrid of two courses combined into one) so maybe it could be counted as half-time. The tuition is a flat rate, not per-credit.

I believe summer courses are generally more expensive than those taken during the semester. I agree that it's a bit overpriced, but a state school I looked into charges $340/credit for nondegree students. They also count the equivalent of what I'm taking as 10 credits, so it would still be $3400. Not exactly cheap.
posted by DayTripper at 5:35 PM on May 7, 2013

DayTripper, I don't know what lenders will think of your particular circumstances. Searching for "credit union" + your state should give you an idea of what's out there. It doesn't have to be a credit union, although they tend to have better rates (mine was 9%, which is better than a credit card) – your current bank probably offers personal loans and lines of credit as well.
posted by halogen at 10:04 PM on May 7, 2013

I agree that it's a bit overpriced, but a state school I looked into charges $340/credit for nondegree students. They also count the equivalent of what I'm taking as 10 credits, so it would still be $3400. Not exactly cheap.

Not to state the obvious, but that's a $2,000 savings, so I wouldn't exactly dismiss it especially considering your current debt load.
posted by Think_Long at 1:45 PM on May 8, 2013 [1 favorite]