We may be at the starting line of a new year, but that doesn’t mean everyone’s in the same place when it comes to planning and paying for college. No matter where students are in their journeys, Granite Edvance can help.
Colleges will be releasing decisions soon and with that, college financing decisions, while not here yet, are fast approaching. Here’s some advice to help you prepare.
Questions to Consider Now
Q: Have I had any adverse credit events happen within a relevant timeframe?
A: In most cases, the student will need a cosigner to be approved for private student loan financing. The majority of lenders are going to consider your recent credit history in determining eligibility. Events such as bankruptcy, default, serious delinquency, or collections can all adversely impact the ability to borrow or cosign for a student loan.
Relevant timeframe will vary between events and lenders but a look-back of five to seven years into your credit past is a good benchmark to consider.
Q: What do we do if we do have an adverse event?
A: One plan of attack is to ensure you add in a school option that may reduce or alleviate the need for financing. This can include a community college or a local school where the student can commute as opposed to living on campus. In addition, if a parent who applies for a Federal PLUS loan has an adverse credit event that causes them to be denied for that program, the student may be eligible to receive additional federal student loans, which may be enough to cover the financing needs. We encourage you to discuss this option with your financial aid office in advance.
Q: When does the student loan application process usually start and how long does it take?
A: Applications for fall semester funding will usually start in early June and continue throughout the summer. The timeframe for completion can vary between students and lenders but expect at least two weeks.
Q: Can I use a private student loan for expenses other than college tuition?
A: Yes! Your loan can be used for other education-related expenses such as textbooks. However, your loan can’t exceed the college’s Cost of Attendance (COA) minus any other aid such as scholarships.
Your Cost of Attendance includes tuition and fees, and may also include indirect costs like books, supplies, and transportation. You can find this number on your financial aid offer.
Once your loan application has been successfully submitted and approved, the financial aid office at your college will certify the loan and determine the amount you can borrow. If you have education expenses other than tuition you’d like to include, it’s a good idea to let them
know.
How can we help you?
For more information and personalized support with college and career planning and financial aid, visit our website, Graniteedvance.org, and follow us on Facebook, Instagram and LinkedIn.
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