Americans - help me understand please!

by Kym Robinson 13 replies
Hi everyone - this is directed to our american members!

I have a good friend who needs help with a student loan.

I dont understand how the american 'credit score' or 'undergraduate/overgraduate' thing works at all.

I would really like to help her and I need your advice.

here is part of her info.............

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I can't get a gov't loan this year because I am repeating a class, and so I can only re apply for govt loans until next year. I am currently a graduate medical student in the University of Debrecen, in Hungary. I am an American citizen, however. Last year, I received Federal govt Stafford Loans to pay for my tuition, but since I am repeating a class, the financial aid department says I am not eligible for one this year. I have to pay my tuition by the end of October, or I can not take classes. Since I am only taking the one, it costs 2500 dollars. I could apply for a private loan, but I do not have anyone that could co-sign for me. I have a credit score of 632, which I hope isn't bad for someone of the age of 23. I have quite a bit of student loans from the last three years of grad school and 3 years of undergrad. I have one credit card that I use regularly, with a credit limit of $10,000 and a balance currently of $2,990.

As for scholarships, the only thing that my university offers to foreign students is a tuition reduction if they do well in the school year. I am well on track for receiving it for next year. If I get 4 and 5s in all classes, then I will get 20% off tuition for next year.

I know I will not repeat any more classes next year, so I will be able to apply for Stafford again. But if I don't have the money for this year, I will never be able to move on. I have been supporting myself through tutoring and teaching English and other medical subjects as well as free lance writing. I pay most of my rent and expenses that way. I can not get a job here, as I do not speak the language and most English speaking position are in the daytime (during school hours) or in Budapest, three hours away.

I also started a blog and website for Americans living Abroad in Europe, helping them keep in touch with home. I am in a blogging coaching program and I take it very seriously. I have a business plan set in place for me to monetize the site. I should be self sufficient by Jan 09, through ebooks, and affiliate programs and advertising. I know I can and will make it.

I tried a Bank of America line of credit, but was not approved. I didn't want to just apply for any private loan, as not sure if I would be approved without a co-signer. And every credit inquiry will affect my credit score. I didn't want to take a cash advance from my credit card, as the interest rate is very high. But I will do so, if you deem it necessary. Most of the grants available are for undergraduate students, of which I am not.

I need about $5-6000 for me to pay tution and support myself until the end of the semester in Jan 09. Being that I am technically unemployed and a full time student, can I get a line of credit, a private student loan, or even a small business loan to take my business to next level faster? There has to be some kind of loan or grant for graduate students that can not work and have no family support I have filled out a FAFSA and have an Expected Family Contribution of $0. Please give me some guidance. I have no idea where else to turn.
Thank you so much Kym,
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can anyone make some suggestions?

as an aussie - my financial knowledge wont help her.

I have even consulted my financial advisor but he cant help either.

She is very determined and a great girl - so any help would be much appreciated - feel free to PM me if you cant talk here.

Thanks so much - Kym
#main internet marketing discussion forum #americans #understand
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  • Profile picture of the author Thomas Belknap
    Tough to answer Kym.

    I got student loans with no problem even when I had to retake a class. It doesn't make sense to me but that was a long time ago and the rules may have changed. I never had to go to any banks to get approved.
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  • Profile picture of the author Kym Robinson
    Thanks Thomas - so if she reapplied for the Stafford thing - do you think that would be good advice?

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    • Profile picture of the author Thomas Belknap
      Originally Posted by Kym Robinson View Post

      Thanks Thomas - so if she reapplied for the Stafford thing - do you think that would be good advice?


      I don't think she can lose the Stafford loan because she had to take a class over. I have a feeling there is more to this than she is saying. Of course, the rules could have changed since I went to school. That was quite a while ago.
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  • Profile picture of the author Kym Robinson
    Ok Thomas well hopefully someone will come along that can fill me in more!

    but thankyou for your assistance!
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    • Profile picture of the author Kym Robinson
      Thanks for your PM's!

      I have contacted Chris G and hope to hear back soon - any further advice please?
      Thanks - Kym
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  • Profile picture of the author Kym Robinson

    I contacted Chris G and he has kindly replied but unfortunately is not well versed in ameriacn student loans - he does canadian stuff.

    I thought I would get a tonne of replies as America probably makes up the majority of Warriors?????

    C'mon warriors please give me some suggestions!
    Thanks in advance - Kym
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  • Profile picture of the author liban
    The biggest problem I see with the Stafford Loan is that she is only taking one class. Stafford loans are only for students attending school at least half time. I don't know if one class is considered half time for her course of study, but I doubt it. Her credit score is okay, but not great. With the credit situation in the US - and around the world - what it is, I know that banks are being more cautious than usual. (Simply applying for a line of credit actually makes the score go down a bit, although not that much.)
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  • Profile picture of the author thatgirlJ
    I think Kayla above hit the nail on the's tougher than ever to get loans.

    With that being said...she doesn't need to rely on government loans necessarily. There are tons of private scholoarship programs. In fact, there are upwards of 1 billion in loans that no one even applies for each year.

    These are based on things like race, gender, ethnicity, hobbies, organizations the student and parent belongs to, etc.

    It's probably far too late to apply and get the money by the end of October through a scholarship though (but it's something to think of for the future).

    There are some private organizations that might come through for her, but they definitely aren't as good of a deal as what the government offers.

    I had some through Sallie Mae and they are good.
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    • Profile picture of the author Black Hat Cat
      They are not refusing her because she is retaking a class.
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  • Profile picture of the author GarrieWilson
    What was her previous GPA? They have a minimum... Is she full or part time? This determines the money she can get.

    If she has a 10k credit limit and only owes 3k, she has 7k to charge. Since the class is 2.5k she can charge it.

    Problem solved, for now.
    Screw You, NameCheap!
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  • Profile picture of the author deu12000
    I think where the whole situation gets tricky is she's using money from US loans in Hungary. I didn't even know you could borrow money from US financial institutions to study abroad. Her credit score isn't too bad and for someone her age you can even say it's decent, she shouldn't need a co-signer (even with the credit crunch going on now).

    If the rules are the same as lending to a student studying in the US, she might be able to try Sallie Mae - Private Student Loans, Federal Student Loans, Private College Loans . They lend to just about anyone without a cosigner.

    I'm guessing her problems are stemming from her studying in another country. If it was here she could just go to her schools financing department and get help. Repeating a class doesn't help either, a lot of loans require a minimum GPA score.
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  • Profile picture of the author Dave777

    Why don't you teach your friend all those "warrior" internet marketing secrets and she probably won't require that loan...
    Might even give her a different outlook on her education! Just thought I'd throw that suggestion out there for some food for thought...

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  • Profile picture of the author Kym Robinson
    You guys are awesome!

    thanks so much for all the info - I have sent every word to my friend and I guess she will just have to make a decision now!

    I am a firm believer......that you make the best decisions with the most available info - so Ive done my bit and you guys have come through for me as usual!

    Thankyou so much for your assistance!
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