I applied for a private student loan for my college daughter, and I was turned down, even with me as a co-signer, they said because of my credit rating! And last year I got one at 1% over prime. So in one year I apparently went from a very good rating to trash? I think the credit crunch is hitting big time!
This really stinks. I had planned to use loans to get both daughters through, and then once I could withdraw from a 401k after age 59.5 to get them paid off. But I was concerned that this might happen. Why have I died and gone to hell?
Oh man - what a difference a year makes!
July 29th, 2009 at 02:51 am
July 29th, 2009 at 03:40 am 1248835251
I'm so sorry you're going through this. I am taking the liberty of giving my two cents because I went through the same thing. I'm worried that you would exhaust your retirement money to pay off college debt for your daughters. I know that as a parent you feel the obligation to pay for college and I felt the same way too, but there are alternatives to funding college. My son who was an excellent student in a competetive high school opted to attend community college as oppose to a 4 year college because I was very frank about my opinion on private student loans. I know that community colleges have the reputation of being for slackers, but I as an educator myself, I feel that the slackers will eventually flunk out of junior college and the good students will continue to a four college. Private loans will not be forgiven in case of a bankruptcy. The son of one of my collegues went to a four year college for two years at a tune of $60,000 and will be attending community college this fall. I'm not saying that this will be the case with your daughters, but it can happen to the best of kids. Can you be candid with your daughters about your financial situation? There is only so much you can do with what you have even when it tears your heart apart. Ask yourself who is going to take care of you in old age (without a retirement fund)?
July 29th, 2009 at 04:06 am 1248836775
I think I posted along the same lines a while ago (probably - sounds familiar as I read Debbie's comment) but I have to agree with her. My parents did not pay for my college, I had a wonderful affordable education, and I do have a wonderful career. An expensive college is certainly not everything. It is not a need for a successful financial future. Community college for 2 years is a wonderful way to keep costs down. One of the best classes I took in college was a summer class at the community college. plus, it cost pennies. I wouldn't knock it. Without community college, not sure my dad would have ever gotten a college degree either.
KEep your chin up - it will be okay.
July 29th, 2009 at 05:19 am 1248841175
July 29th, 2009 at 02:48 pm 1248875323
July 29th, 2009 at 05:47 pm 1248886061
Well, the road to hell IS paved with good intentions.
Yikes! Hard to believe in this day and age that ANYONE could/should/would EVER think about dipping into their retirement funds to pay for someone else's education.
All together now ..... "You CAN finance an education, you CANNOT finance a retirement"
August 3rd, 2009 at 02:49 am 1249264142
And baselle, my experience was that Discover private loans have far better rates than even the Stafford loans. She did get a $7500 Stafford unsubsidized loan, so actually that's probably enough credit for this year's college.
I am trying to get the younger to consider the two year community college gig, but now my wife says that you can't do that for engineering, but I'm sure it has been done.
For now, I have to see why I was refused - I suspect it's too much debt! Hmmm, is digital TV reception any better than the old analog? I have been wanting to ditch Comcast for YEARS. How is Verizon's $17.99 Internet service? I have to make another run at convincing my wife that this is serious stuff.
August 23rd, 2009 at 01:35 am 1250987711
I'm not sure how your state community colleges work, but our county community college has billboards title "I started right" which are testimonials of people whom have become dentists, scientist, lawyers, among other professions. I attended a community college and when it was time to transfer to a four year college all of my credits were accepted and I also got a transfer student scholarship which entitled me to half of the tuition and it was not need based. You should call and see what they offer.