Fed Financial

Student private loan issue?

I started to apply online at Chase for a private student loan. The info I provided about my school which is a community college the maximum I can borrow is $11,700, but when I calculated the total for cost of attendance my estimate was $17,760. When borrowing from a lender are all private loans based on cost of attendance at the school you will attend? I thought the max per year was up to $40,000 for a private loan? Sorry, I forgot to mention $17,000 yr. isn't the cost of my tuition, It would be the amount needed for me to pay rent, gas money to get me to school (40 minute drive) and other expenses. There isn't any on campus housing for students and the rent for an apartment around here starts at 1200 a month.

Public Comments

1. 40,000 is a total for the entire school year which is July to July. of each year. And most loan companies will based upon the school set the amounts you can borrow from them. Be sure to apply for any and all other financial aid for which you qualify for. Inside: Home equity loans | Mortgage rates Adv: $40,000 for $283/mo - apply online Bankate.com News and Advice Compare Rates Calculators Glossary | Help Mortgage Home Equity Auto CDs & Investments Checking & Savings Credit Cards Debt Management College Finance Taxes Personal Finance - advertisement - <a href="http://adsrv.bankrate.com/ADCLICK/CID=0000934c42100a6900000000/site=brm/aamsz=banner/position=top/parent_channel=newadv/area=edu/ftb=/page=story/product_id=0/acc_random=88481677" TARGET="_blank"> <img src="http://adimage.bankrate.com/key_bank/090407_0002_key_direct_4510_Flash_728x90.gif" ALT="" width=728 height=90 border=0> </a> Paying for college with private loans By Lucy Lazarony • Bankrate.com For some college students, federal aid just isn't enough. After maxing out federal loans, more and more college students are turning to private loans to finance their college educations. To get a good deal on a credit-based private loan you'll need to shop carefully. Interest rates and fees vary widely. And you may need the help of a creditworthy co-borrower, such as a parent, to snag one of the better deals. "It's important for students to be as informed as possible," says Ronald W. Johnson, financial aid director at the University of California at Los Angeles. "Don't assume one private loan is like another." - advertisement - College students borrowed over $56 billion in federal loans in the 2003-04 school year, and $11.3 billion in non-federal loans, according to the College Board. Nellie Mae reports that while private loans make up only 9.2 percent of student aid, students that do turn to private loans are borrowing quite heavily. The average debt level of a student who borrowed with a private loan in their undergraduate years is a whopping $41,900. "Many students are being compelled to take out private loans by outdated and insufficient federal student loans," says Marie O'Malley, a vice president of marketing at Nellie Mae. Rising cost, rising debt Many students turn to private or alternative loans after exhausting federal borrowing options. Despite climbing college costs, the borrowing limit on federal Stafford loans has not increased in a decade. The Stafford program is the largest source of student loan funds in the country. "It's just simple math," says Carl Buck, vice president of financial aid services for Peterson's. "The cost of attendance, particularly at private institutions, has gone up significantly and you don't have the federal aid programs increasing their maximum borrowing lines at all." Undergraduate students that depend on their parents for financial support may borrow $2,625 in Stafford loans in their freshman year, $3,500 in their sophomore years and $5,500 in their junior and senior years. "Many students simply need to borrow more than that so they turn to private loans," says Sandy Baum, a professor of economics at Skidmore College and co-author of a recent study on student loans. "They're also turning to credit cards." Federal student loan borrowing limits may have been fine over 10 years ago. Back in 1992-93, public universities charged $2,334 in tuition and fees and private colleges charged $9,340. Today, public universities charge an average of $5,132 (up 10.5 percent from last year) in tuition and fees. Four-year private colleges charge $20,082 (up 6 percent from last year) in tuition and fees. Toss in room-and-board expenses, and the total cost for a student, at a public university, averages $11,354 and at private colleges, $27,516. It's easy to see how a college student could be stuck with a steep education bill even after taking out a federal loan. PAGE 1 | 2 -- Updated: July 15, 2005 Going to college when you're older Get ready! Cost of college is going up More college finance stories FRUGAL NEWS Free newsletters! Sign up now. See sample. - advertisement - News & Advice | Compare Rates | Calculators Mortgage | Home Equity | Auto | Investing | Checking & Savings | Credit Cards | Debt Management | College Finance | Taxes | Personal Finance About Bankrate | Privacy | Online Media Kit | Partnerships | Investor Relations | Press/Broadcast | Contact Us | Sitemap NASDAQ: RATE | RSS Feeds | Order Rate Data | Bankrate Canada * Mortgage rate may include points. See rate tables for details. Click here. * To see the definition of overnight averages click here. Bankrate.com ®, Copyright © 2007 Bankrate, Inc., All Rights Reserved, Terms of Use.
2. What community college are you attending? Community College is supposed to be a CHEAPER alternative to a 4 year institution. A transition school. At over 17,000 you are spending way too much. Try Community College of Philadelphia tuition for an out of state student is waaaaay cheaper and the education is excellent. The credits are accepted everywhere. Your tuition for the year would be about $5,000 a year since you would be out of state. Is there a specific reason why you have chosen this particular institution? As far as the loan, you don't want to get tied in too deeply with student loans especially so much money at the beginning of your educational career. At the rate you are going it would take you 20 years to pay off the debt and it never goes away even if you file bankruptcy. There are many different types of student loans. The one which you have chosen apparently has a max of $11,700. If you truly feel that this is the institution you desire you need to inquire about the other student loans the banking institution has available. I wish you many blessings but please look into going to another school. Your tuition and fees are too high to go to Community College. I pay much less going to Temple University for an engineering degree. And I am a current student.