Frantic for a student loan... What should I do?

[Seamaster]

I'm sorry if it seems silly of me for registering just to go and ask a question, but I really could use some advice. I made a rather lengthy post about how I got myself in such a dire spot, but when I previewed it, I noticed there was a limit to how long a post can be, so I'll just get straight to the point.

I'm a freshman at Boston University with no financial aid, federal loans, or loan of any loan at the minute. Big problem, considering how costly this place is (waaay more than what it looked like it was going to be )

Federal loans and financial aid require all sorts of tax paperwork. Unfortunately, my parents just went through a somewhat messy separation, so aside from finances suddenly being split, taxes were something of a gray area for a while (and still are somewhat). My father also moved and now works in California, while my mother stayed in St. Louis (my hometown).

So needless to say, I wasn't able to secure a federal loan much to my dismay. So my next course of action was to look for a private student loan, which I figured I'd just take out one for the first year, and once the tax paper thing got sorted out I'd get a federal loan in plenty of time for the second year of school.

As you probably know, these loans require a co-signer (parent) with good credit, which neither of my parents have. 5 years ago, my mother was forced to resign from her job as she was diagnosed with an extremely rare form of cancer, and had to do quite a bit of traveling to seek treatment. This was all very expensive of course, and so some payments were late, etc, and the long period of unemployment wrecked her credit score. My father's credit isn't bad but it isn't great either, and as he's had his job less than 2 years in California, it negatively affects your chance of getting a loan approved. As luck would have it, by the time I reached the point where I was frantically trying to get a loan of any kind with my father co-signing the loan, the financial crisis erupted, which only made the lending standards tougher.

So now I'm stuck. My mother and I had some funds saved away for my education, which we used to pay for this semester and part of the second semester, but are now exhausted. As it was the only choice I had when notifying the school my payment method, payments for the next semester are due on the 15th of each month. As I'm still seeking a financial solution, I missed the October period payment, and the November one is fast approaching. I've also almost missed the registration period for classes next semester - which I can't do until I've caught up in the payments - but I need to register as I've already partially paid for the next semester (and don't want to drop out!)

I've beat myself up over this for 4 months now and now I'm for just looking for any way out, even if it means a high interest rate. I'm planning to continue to medical school, and sometimes when you are employed straight out of school, your employer will pay off your remaining loans for you (This is how it worked out for my both my elder brother and mother).

Thankfully, I'm very close with both of my parents and if anything they want to help me as much as they can. Forgive me for not knowing the proper term, but my mother has been considering taking out a loan from the bank where you use your house as collateral in order to pay for the first year. The guilt I'd feel making things come to this point would be too much to bear I'm afraid, I don't know I could live with that (even though she says it's fine). Not to mention that the loan wouldn't be in my name, so if I were to have my student loans eventually paid off by an employer, this loan would be excluded since it isn't a loan in my name.

Now I know the most financially prudent thing to do would be to drop the hell out of here and go to a Missouri state school. However, I'm already here, and already have plans to possibly transfer to a school overseas after 2 years (which despite costs of travel would be significantly cheaper ), and even despite the position I've created, my mother is somewhat insistent I stay here.

So does anyone have any advice whatsoever? Really, anything. Because all I can come up with involves jumping out a window.

Thanks in advance for anything, I'm glad there's some place on the internet where I can seek a solution to this mess...

[KatieNK]

I am so sorry you have to worry about this when you should be worried about whether or not to go to a party tonight instead!

Have you talked to any financial aid counselors at your school?

I really think there would be a way for you to get a Direct Loan, or government education loan, if you just had some help.

If you really think you might be able to have your loans paid for by a future employer, then a 2nd mortgage or home equity loan is not the way to go. Also, if your mom's financial situation is not that great, she could end up losing her house.

I think you should definitely talk to someone at your school, they might be able to help. You should also try everything in your power to stay at BU, as that is what is best for your future.

Good luck!

[Inkstain82]

I may have misread, but I think you've only assumed you'd be rejected for a private loan, not actually been rejected? Of course, you must try if it is at all possible.

My biggest advice to you would be to take a deep breath and *really* examine the choices. If you need to take a semester off to get a job and save up, do so. You may even be very glad you did when you graduate and you realize that you have that much less debt. Taking a semester off to afford college will not be the end of the world, and the mentality that there is something you want (to go to school next semester) so badly that any amount of debt at any rate is okay is not a good habit to get into.

I wish you the best of luck. I don't have any personal experience with student loans since the credit crunch began, but my memory is that schools could always find you something if you worked with them.

[Joan.of.the.Arch]

I was curious and looked up this info on your school:


For the 2008/2009 academic year, the total cost of attendance is:

Commuter Resident
Tuition $36,540 $36,540
Fees $510 $510
Other Expenses
Books & Supplies (estimated) 860 860
Room & Board (most plans) 0 11,418
Incidentals (estimated) 3,417 1,772
Meals at Home/Meals On Campus (estimated) 2,073 0
Total Expenses $43,400 $51,100


It sounds like you and your parents may be in over your heads. I'm probably close in age to your parents, as you are close in age to my son. Even with good financial stability, I would not take out a loan secured by my home to pay private school tuition for my own son. We'd have to get the education another way. I know it might be heart breaking but I think you ought to look at the alternative of other schools. I really sympathize, though. I had to drop out of school after sophomore year due to lack of money or job. I eventually got back though.

[Seamaster]

Thanks for the responses

To clarify, I've applied for several private loans and have been turned down for all of them. Although there's loads of different companies that offer student loans, there's just a few different actual lenders that they use, so if you get turned down by one, you can't really re-apply through any other company that uses that same lender.

I've been somewhat regretting my decision to come here since day one, as even though I like it here (except that I signed up for far more classes than I was ready for in my first semester ), the financial problem has just been making me totally miserable the whole time. So I've been tossing around the idea of transferring somewhere cheaper, and the Massachusetts State University in Boston is a bit cheaper (not by a lot though! ), or I could just go back to Missouri, and hope I could still do a couple years abroad after that...

The idea of taking a semester - year off had occured to me, however as I said the spring 2009 semester is already partially paid for, and I don't think the school would return that to me if I suddenly didn't have the cash to pay up for the rest of it... And I'd really hate to be out that money... So I think I'm stuck with this for at least another semester before I can really decide whether I'll take any time off or transfer.

I haven't talked with any of my school's financial people. Quite the opposite actually, I avoided them like the plague, simply because I thought I'd get an earful and promptly be thrown out of my dorm room. Though maybe I should summon up the courage and go talk to them...

I'm just trying to think of something I could suggest to my mom before she really goes out and gets that loan, as I really would rather she not have to do that. Why my parents aren't absolutely furious with me, I don't know. Yeah, I'm very close to them both and never caused them any trouble before now, but even still...

[Joan.of.the.Arch]

Probably your parents want this for you very much, too. And it is likely that the divorce set both of them back, so they probably feel really bad about not having the money to help as much as they want to. I gotta say, though, when your savings for school was started, they probably had no idea how expensive it was going to be.

Look, a lot of private schools have special funds for students with a hardship. Please go talk to the financial aid people. They really are there to help you, not to browbeat you. Also, if you have already declared a major and have an adviser in that department, bring up the problem to your adviser. They may have connections with a departmental benefactor, too. Get the word out if you seriously think that this is the school for you. If you are not already employed, the school and/or department may have work for you to help top off any extra aid they can find you. Ask in the business office if the tuition you already paid for next semester is refundable if you are unable to attend, I really think it would be.

[creditcardfree]

Joan is giving you great advice...go talk to the financial aid office.

If I were you, I would also be looking for a job that you can work part time. My husband went to school full time while holding down a FULL time job.

I would also highly suggest going back to Missouri to get on a better track...work for a semester and start fresh in the summer or fall. It is not the worst thing in the world to realize that you are in over your head. It is very smart of you to realize this and be concerned. I also think it would be a big mistake for your Mom to take out a loan.

Best wishes!

[atomicrc11]

I agree to also talk to the financial aid office. They may be able to help you. They really don't want students to have to leave because they cannot pay. They would rather help you get loans/grants so you can stay. It's better for their reputation, their wallet and you get a good education.

If you cannot do this, go to another school for under-grad and go to Med school here. BU has a good Med school and so does Harvard. Plus, there are many many great hospitals at which you can do your internship and residency. Boston has great schools, but I'd say it would be better to go Med school and internship/residency rather than undergrad.

[rooskers]

This is going to be all to common from now on. I read an article about two months ago that told a story similar to yours and went on to say how more and more people although they desire too will not be able to attend higher education because of costs.

Anyways here is what I would recommend. You are just beginning and although medical school seems like what you want to do you probably still aren't 100% sure. So what I would do is move back home and go to a nice cheap community college and work part time. The basic 200 level chemistry, physics, biology, writing, mathematics, and all the other prereqs for getting into anything will be the same and most likely taught from the same book no matter if you went to Harvard or the local community college. Then once you get your associates degree and hopefully you get really good grades transfer to a university and apply for lots of scholarships.

My wife did this starting out with an AS in nursing. She then got scholarships to pay for her entire BS in nursing. Now after working couple years she has been accepted into a doctorates program for nursing. I have done something similar and have an AA, BS in mathematics, and masters in education. So don't worry that because you went to a community college you won't be able to get into a "good" university. One of the guys in my math class in CC got accepted into Stanford so it is possible.

[zetta]

Definitely start with BU's financial aid office. They will know all the ins and outs, plus have access to the alumni network that grants special scholarships. And find out for certain the status of the payments you've made toward next semester.

Getting your undergrad at a state universtity is a very good option. While taking all of your general ed classes at the community college level is a good option, I would want you to talk to someone from a med school admissions office before taking your science classes at the CC level, since getting into med school is very competitive and they do look at where your undergrad was done.

[KatieNK]

Rooskers, the fact that you compare community college to Harvard is laughable- even if you are just talking about the 100s level classes. The difference is the professors that teach them, the students that participate in them, and the lessons/assignments that are implemented.

Sea, if you know you want to be a doctor- you need to try to stay at BU or a comparable school. Medical schools and hospitals are going to be looking for students/interns that stand out. I think even a 3.7 GPA from BU would look better than a 4.0 at a state school. I don't really agree with the advice to take a break from school so you can work and save up. You won't be able to get the kind of job that you can actually save up enough for within a decent amount of time. It is a waste of time and money really since you could use those years later in life to be earning more money as a doctor or whatever college-degree required job you get.

Definitely go speak with your financial aid office. They don't want to kick you out, they will want to help you in every way possible. They may have solutions you have not thought of. Maybe you can get an Alumni grant to pay for the rest of next semester so you can at least finish out the year. Also, you may be eligible for work-study which is where the school will give you a job somewhere on campus and pay you. I know there is money out there for you. When I was in school, I got all kinds of little grants and scholarships that really added up.

[Joan.of.the.Arch]

Seamaster, I have no idea what factors led you to choose Boston Univ, so it is really a shot in the dark to suggest a state school for you, but heck, I'll just go ahead and mention this one in your home state. I'm sure it is a world away from BU, but still has some outstanding qualities. Oh, one thing not mentioned below is that 1/3 of their students score in the top 3 percentile of SAT or ACT and thus get full scholarships and also help raise the academic bar high..

Truman State University
What Others Say

*

Truman State University has been recognized, once again, as the No. 1 Public University in the Midwest Region Master's Category by U.S. News & World Report's "America's Best Colleges 2009." This recognition marks the 12th year Truman has been awarded This top ranking.
*

Truman also was ranked No. 8 overall in the Midwest region among both private and public institutions. Truman is the only public university in Missouri to be included in the top 10 public university-master's ranking Midwest region.
— U.S. News and World Report's, "America's Best Colleges," 2009 Edition
*

Listed as one of the nation's best universities for undergraduate education and ranked 17th in the category "Students Happy with Financial Aid."
— The Princeton Review, "The Best 368 Colleges," 2009
*

Recognized for programs leading to student success:
o Undergraduate Research

— U.S. News and World Report's, "America's Best Colleges," 2008 Edition
*

Truman State University is the nation's No. 2 best value in the public sector according to the Princeton Review. The New York-based education services company features the school on its "Top 10 Best Value Public Colleges" ranking list and profiles the school in the 2008 edition of its book, "America's Best Value Colleges."
*

Kiplinger's Personal Finance magazine lists Truman State University as 20th on its exclusive survey list of 100 best values in public colleges that "combine outstanding economic value with top-notch education." The top 100 schools were selected from a pool of more than 500 public four-year colleges and universities and Truman is the only university in Missouri and the eight contiguous states listed in the top 40. Truman is also ranked as the 5th best educational value for out-of-state students.
— Kiplinger's Personal Finance magazine, December 2008
*

Truman State University, Missouri's only public liberal arts college, attracts over-achievers from across the Show-Me-State.
— The Fiske Guide to Colleges, 2007 Edition
*

Truman State University has made its first appearance in the Peace Corps annual rankings of schools producing volunteers for the organization. Truman ranks 25th on their list of medium-sized schools producing Peace Corps Volunteers. Truman has 20 alumni currently serving as Peace Corps Volunteers. Other schools listed in the top 25 include University of Virginia, Georgetown University, Washington University in St. Louis, University of Notre Dame, Brown University and Yale.

If your user name indicates that you are into boating, there is even a small lake within a bike ride of campus.

I visited there with my son when he was choosing schools and met many students who had taken a semester or a year abroad---though they seemed to be taking a fifth year to fit it into their studies.

[zetta]

It just occurred to me that application deadlines are usually January for school the following August. Your choices about next semester may be between community college and staying at BU. You should pick backup schools for the fall and put in applications for transfer -- just to have a plan B in place, you'll still have a few months before you have to make a final decision.

What about the 2 years overseas that you want to do? How will you fund this? If it's less expensive, could you transfer now and do the rest of your undergrad there?

[Inkstain82]

Sea, if you know you want to be a doctor- you need to try to stay at BU or a comparable school. Medical schools and hospitals are going to be looking for students/interns that stand out. I think even a 3.7 GPA from BU would look better than a 4.0 at a state school. I don't really agree with the advice to take a break from school so you can work and save up. You won't be able to get the kind of job that you can actually save up enough for within a decent amount of time. It is a waste of time and money really since you could use those years later in life to be earning more money as a doctor or whatever college-degree required job you get.

If we're going down that route, the original poster needs to be aware that doctors are notorious for having both high income and high debt, living a highly leveraged lifestyle with little savings and long-term financial success. There are always exceptions, but that is the general rule. The cost of medical school is a big part in that.

If you want to be a doctor, by all means be a doctor. But don't spend hundreds of thousands on college with the assumption that higher wages will pay it off later and lead to long-term financial success. For most, it won't work that way.

[Inkstain82]

It just occurred to me that application deadlines are usually January for school the following August.

College transfer deadlines are usually a little later. Colleges can be picky about their freshmen, but usually they are happy to fill in the gaps from freshmen drop-outs with their upperclass transfers.