Anybody had any experience with multiple loans from SallieMae?
Question:Ok... So I've accrued some debt under my belt in the last few years, mostly from educational expenses. This caused my credit to go from good to fair. So when i applied for this "Tuition Answers" loan from Sallie Mae I am denied need a co-borrower. I hate having to involve anyone in any kind of financial situation so here's my plan...
Say I've got 3 maxed out credit cards for a total of $3000 debt. Then a consumer loan that's about $6000, and a Sallie Mae loan for about another $6000. For the school I'm going to and the type of loan it is, lets say I can only get about $9000 with the obligation of adding a co-borrower.
What I was going to do was get the $9000 with the co-borrower and pay off as much as possible to get my credit back up to par so I can then get the same type of loan later and for a larger amount to pay off that $9000 so no one will be financially obligated but me. Continued below...
Many people have answered to go with federal student loans first if you need to borrow which that is correct but I think if i read correctly your situation is that you need above and beyond your financial need which is your cost of attendance (COA) minus your expected family contribution (EFC) (equals financial need).
Paying debt with debt is not good. But if you are going to do that pay the debt with the highest interest rate that will save you money. Sallie Mae does not look and approve you whether or not you have a loan with them. They do a credit check based on your or your cosigners credit. If they have the highest interest rate then pay them off. If it is your credit cards then pay those off.
If you loan is needed for education apply for a Stafford Loan. These loans do not require a credit check and are easier to obtain.
Agree...go with the federal goverment's student loans. Better repayment terms, interest rate and fees then private loans. You can do this online at http://www.fafsa.ed.gov/. Since no payment is required on these loans while you are going to school start paying off your other debts. I'd figure out which you are paying the most interest on and get that debt paid off first. Then move to the one with the second highest debt, and so on. Double check on the Sallie Mae loan, but usually they do not have a pre-payment penalty.
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