SkydiveNFlorida 0 #1 May 12, 2005 Hi, I am short a bit of funding and need to find about 12000 in loan money for living expenses and such while i'm in school. I am currently employed, but will be quitting in July. As it stands, I think I have good credit and I make a decent salary, so I thought it might be easy to find a loan. I was just pre-approved for some edamerica loan and it is seemingly based on the fact that I have stable employment/income. Here's the thing, they are sending me an application/borrower's note and will ask me to attach proof of employment AND registration. On June 9th I will be officially registered and I plan to leave my job on July 1st. So, in June I could send them valid documentation, but i'm wondering if they disperse on the loan and I quit my job, can they rescind at that point? Help, I don't want to get in trouble for misrepresentation of ability to pay, what are the legalities of this situation? Please noone reply and say that I should go to a school that costs less, or some shit like that. I've made up my mind, this question is not about whether I should borrow money, it is about the technicalities of borrowing money. Thanks! Angela. Quote Share this post Link to post Share on other sites
doaster 0 #2 May 13, 2005 Angela A little help coming your way...... Fyi, I am a Financial Representative for a financing company. The risk of unemployment of a client is a risk a financing company must take when extending credit. There will be questions in regards to your current employment status at the time of the loan, but there is no way for a financing company to predict the future, nor is there anyway an individual can guarantee future income. I am guessing that Flordia is a "at will" work state. Therefore, the majority of people can not represent or guarantee that they will have employment for the duration of the loan. FURTHERMORE, educational funding is usually deferred..... Make sure the credit is deferred. It means that the loan would not be repaid til some time after the completion of education. This gives you the opportunity to become employed and repay the loan. Before you secure financing check your credit. You can do this for free on this web site. www.annualcreditreport.com. It is federal law that each of the 3 major bureaus, provide you a free look once a year at your credit report. If you were to become deliquent on a loan, a financial institution can almost always demand the full balance at some point. Make arrangements through the schools financial aid office and you should be just fine.. If you have more specific questions, repost and I will try to answer them. DO Quote Share this post Link to post Share on other sites
SkydiveNFlorida 0 #3 May 13, 2005 Hi, there! Thanks for the help. It seems that the free report isn't available until June 1st here in Florida, is it worth it to pay the $9.50 for an Equifax report? How important is it that I have this report before getting a loan, and why? QuoteFURTHERMORE, educational funding is usually deferred..... Make sure the credit is deferred. It means that the loan would not be repaid til some time after the completion of education. This gives you the opportunity to become employed and repay the loan. The place I replied to did not mention deferred, but asked if you wanted to pay interest only or interest + principal while in school, and I selected int only. I am assuming that is the same thing as deferring it? QuoteIf you were to become deliquent on a loan, a financial institution can almost always demand the full balance at some point. Make arrangements through the schools financial aid office and you should be just fine.. The school has alloted 12500$ for me to go get a signature loan. I am not sure I have more specific questions, except maybe where you recommend I apply to get a good rate. Any other tips are appreciated! Thank you:) Angela. Quote Share this post Link to post Share on other sites
doaster 0 #4 May 13, 2005 I would strongly recommend looking at your credit report. This will be the very information that the lender is basing the loan decision upon, you should know the exact number of accounts you have. Many people don't realize the numerous items that are on a credit report, power bills, cell phones, cable bills and so on. There is also the possibilty of inaccurate information. Have this information and you can answer any question a loan officer may throw at you. Check out these websites, for finding more information on your specific school and available loans. http://www.studentaid.ed.gov/students/publications/student_guide/2003_2004/english/types.htm http://studentloan.citibank.com/slcsite/fr_apnow.htm PLEASE do not consider this an endorsement. SHOP around as much as possible to find the best deal, but try first for a Stafford loan. If you must go the loan route. Defermemt means there would be NO payments for a fixed period of time. This is NOT the same as interest only. Have you asked about any scholarships or possible Pell Grants? Is the person at school working from the financial aid office????? GET as much information as possible. 12k is a serious investment treat it as such. Hope I am helping. Quote Share this post Link to post Share on other sites
SkydiveNFlorida 0 #5 May 13, 2005 Yes, the person works in Financial Aid. Yes, I have a scholarship from the school for 12k, and I already have the maximum federal loans (10k). I still need about 3000 more to cover the remainder of tuition, plus money for living on. I will check those links. Thank you very much for your help! I will look for deferment for sure! -A Quote Share this post Link to post Share on other sites
