GabrielRodriguez wrote:
Just some questions, guys!
I am going to B-school too, and I also have no credit history (no work experience, no debt and never had a student loan)
From what I understand, I will be qualified for the full amount of the Stafford loan (in my FAFSA, my Estimated Family Contribution is 0.) So that means I will get the $20,000 right?
Is this 100% certain? If I apply for a loan at Salli Mae am I going to get the money for sure?
Now I might be needing another ~$20,000. Can I avail the PLUS loan without credit history? I'm going to need a cosigner for that, right?
The Stafford loan is not at all credit based and is independent of your financial need. You can see the eligibility requirements on Sallie Mae's website here:
https://www.salliemae.com/get_student_lo ... /stafford/Quote:
- You must have submitted a FAFSA to be eligible for a Stafford loan.
- For subsidized Stafford loans, you must have financial need as determined by your school.
- You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.
- You must be enrolled or plan to enroll at least half time.
- You must be accepted for enrollment or attend a school that participates in the Federal Family Education Loan Program.
- You must not be in default on any education loan or owe a refund on an education grant.
If you meet those requirements, you qualify for $20,500 per year in Stafford loans. The only question is whether the school will decide that your financial need qualifies you for subsidized Stafford loans. If your EFC is 0, my opinion is that it's probably likely you will demonstrate sufficient need to get some subsidized Stafford loans.
As for GradPLUS, there are credit requirements for those loans although they aren't as stringent as the non-federal loans. Whether your lack of a credit history will require a cosigner is really up to the lender. Like the Stafford loan, GradPLUS is not dependent on financial need. The only cap on how much you can borrow is that Stafford + GradPLUS + Scholarships/Grants cannot exceed the school's official cost of attendance. Also, Sallie Mae is not the only lender who provides Stafford and GradPLUS loans. You should do some comparison shopping since other lenders may offer better deals or discounts.
One last point about credit in general. It probably a good idea if you've never had any credit at all to get yourself a credit card. DON'T OVERSPEND WITH IT, but occassionally use it and pay off the balance each month so you don't incur any finance charges. Demonstrate that you can handle credit responsibly and that you pay back debts promptly. You'll want to have built up that credit history for when you apply for larger loans such as car loans or mortgages.