What is a marksheet loan?

What does colleges/government look at when applying for a student loan?

• I go to a community college in Texas and have been paying for it out of pocket and with college funds up to this point. I am about to finish up with my associates degree and transfer to a local university and am going to have to take out a student loan to pay for it. My parents allowed me to live at home while at the community college but after I finish I need to get my own place. I worked out a deal with my parents to finish a unfinished garage type apartment on my parents property. It will cost around $20,000 to complete. It will raise my parents property value and it will allow me to have a place to stay with no rent or utility bills. My question is what does the loan officer look at when approving the loan? I have a 3.76 GPA and very little on my credit report (nothing open now, paid off a vehicle loan about 2 years ago). Would I be able to get a loan for the $20,000 and in spring 2011 get a loan for school? I know I have to fill out the FAFSA application but I wanted to get some information about any way I can better my chances to get my desired loan. Any advise will be much appreciated. Thanks

• Answer:

  To get a student loan, you fill out the fafsa application at http://fafsa.ed.gov As a dependent Junior, you will be able to borrow up to 7,500 a year in federal Stafford loans. Your school would get HALF of this amount for the fall semester and the other half for the spring. If your tuition, fees, books etc. are less than that HALF ($3,750) then you would get the excess 4 weeks after the semester has started. So if you are going to start at the university in the fall and it starts Sept 1st, then don't plan on getting your aid until Oct 1st at least. If your tuition and fees are more than half, you would have to pay the difference out of pocket. Federal student loans don't require you to have a cosigner or pass a credit check. Heck, you don't even need a job and you'llll never see a loan officer. Your schools financial aid office is who you go through to get student loans. You will never be approved for a FEDERAL student loan to remodel your parents garage. Although you CAN use the money left over from the student loan for living expenses and transportation costs and such. If you are wanting to borrow 20K to remodel your parents garage, you need to talk to a mortgage company and not waste your time trying to do a student loan for this. Mortgages have excellent tax benefits and your parents could prob cosign for you with a loan amount that low. Be aware mortgage companies are VERY strict right now so don't do a variable rate mortgage unless you want to risk your parents loosing their entire property (over a garage) because it will be used as collateral for the 20K. Your parents drop in income WILL effect (negatively) your ability to get a mortgage to remodel their garage because your parents would need to be cosigners and they would have to be able to PROVE they can pay the 20K loan when you do not. This is what cosigners do. "it will allow me to have a place to stay with no rent or utility bills." when you take a loan out for something you are paying on it. That is rent or a mortgage payment. Also, you would need to have electric and utilities in the garage or the mortgage company will not approve the loan. My question is what does the loan officer look at when approving the loan? Mortgage loan officers could care less about your GPA. Also, with very little on your credit report you won't get approved, unless you have a very good cosigner. "Would I be able to get a loan for the $20,000 and in spring 2011 get a loan for school?" Not a federal student loan. Student loans go to the school and you are only given the excess. As I stated before, you will not have 20K in excess. EDIT: You need to fill out your fafsa NOW if you have not done so already. Most state and school priority deadlines have already passed (meaning possibly less money for you). You need to do your fin aid application by Valentine's day every year to hit all the right dates. You won't get your excess aid until 4 weeks after the semester has started. This is universal and remember, it won't go directly to you. It goes to the school first. What are you waiting for? Do your fafsa NOW!!! EDIT2::: The average amount of debt some one has when graduating with a 4 year degree is around $24,000 total... that is for all four years. Yes. FOUR YEARS. The 100K situations are sad, but are also very rare. They accomplish this by taking out PRIVATE student loans which are impossible to get without a cosigner with awesome credit, a long stable employment history and an income high enough to repay the loans when you don't. "How can someone go to school on 7,500 a year?" They choose a school less than this, or save their money, or have their parents pay for it, or have other forms of aid like scholarships or work full or part time or any combination of all these things. Most college students (who actually graduate) don't have car payments or rent or any of the expenses of "having a life". College students with LIFES rarely graduate. :-) Financial aid was meant to AID you in paying for school. It was never meant to pay for everything. This is why you hear the stories of the poor college student living off Ramen Noodles and riding bicycles to class. My financial aid administrator has a saying that is so so very true. If you live like a professional when you are a college student".... (the car requiring payments, the apartment, the phone, the laptop, this that and everything else)..... "you'll live like a college student after you graduate". (paying back all those loans). Private student loans are also variable interest rate loans with interest rates MUCH, MUCH, MUCH higher than any mortgage rate you'll ever get. (Ask your parents about the mortgage crisis and they'll tell you all the evils of sub-prime mortgages, (variable rate loans)... Private student loans are the sub-prime loans of the student loan industry). You will get a better interest rate by getting a home improvement loan with your folks than having them cosign for a private student loan. Good luck!!