Law School Discussion

Third-party lenders, etc

Third-party lenders, etc
« on: February 03, 2006, 11:41:45 AM »
I have an unusual situation to deal with, so I was hoping someone from this board might have had some experience along these lines or would otherwise have some words of financial aid wisdom to pass along to me.

I graduated from undergrad in 2005 and have been working at a firm since July 05.  I plan to remain here until July of this year.  I have to move closer to the school around that time (my lease expires then).  I talked to the Financial Aid dept of the school I'll most likely go to, and they said that rent and security deposit and all that good stuff associated with moving are responsibilities of the student, as in out-of-pocket responsibilities.  Of course you can reimburse yourself after you get loan/grant moneys around when school starts, but if you don't have that kind of cash up front, what do you do?  I'm thinking they expect you to get a third-party lender...  A non-educational loan that the lender understands will not be paid back until post-graduation.  I was looking at a few (like myrichuncle.com) but I don't want to get involved with a sketchy lender, and hoped someone here might know something about the various third-party lenders around.  Which ones are good, which not?

Secondly, more importantly: I have a child on the way.  This is, according to the Financial Aid dept, not considered an "educational" expense and so providing for the child is not accounted for in loan/grant distribution.  This means that my third-party lender will actually be loaning me money not only for living expenses but also for baby expenses for the first three years of his/her life.  I understand that this is very easily obtained through these lenders, but again, I don't know who is reputable, etc.  Thus I will end up with a sizeable loan through the school's preferred lender for tuition, etc and a sizeable loan through a third-party lender... Is this at all normal?

I've thought about postponing law school because of the news of the baby, but decided that was a bad idea in the long run, as the sooner I begin earning money, the sooner I'll be able to afford all the things parents want to afford for their kids.  And it will probably never be as easy to go to school as it would be now - they only get more expensive as they grow up...

Thoughts, advice, experiences?  Anything is helpful.  Also, when do you think I should start inquiring about a loan from a third-party lender?  Is now too soon, if I hope to have the money by June/July?

ktcarlin

Re: Third-party lenders, etc
« Reply #1 on: February 06, 2006, 02:27:32 PM »
bump

Mr Shears

Re: Third-party lenders, etc
« Reply #2 on: February 06, 2006, 02:31:10 PM »
When I got loans, I paid the security deposit out-of-pocket ($600) and then when the loan check came in, I paid the rest.  When the second semester rent was due, he let me wait until the loan check came in to pay.  Yes, I was off campus in an apartment, but we worked out a semester-by-semester payment schedule.

Re: Third-party lenders, etc
« Reply #3 on: February 06, 2006, 07:17:41 PM »
Thanks for sharing.
About the other stuff, though (mainly the timing thing - when to start inquiring about a private loan):  If I don't know how much I'm getting in scholarships/need-based aid from my school, is it wise to put my application in now with a private lender?  I mean, I could apply for, say, the cost of tuition minus 18,500 (Stafford) plus all my living costs for the year.  But then the school could come in and give me a bunch of money, and I'll have an unnecessary amount of loanage from the private lender.  Can I... uh, give it back?  Heh.  I just don't want to end up with too little funds or too many.  Of course, too little would be worse.  I guess common sense would have me apply early for a private loan for a copious amount of money and then just make an early payment if the school comes through with the aid.  Good, no good, ask again later?

Mr Shears

Re: Third-party lenders, etc
« Reply #4 on: February 06, 2006, 11:14:30 PM »
You could do that.  I wouldn't even bother.  I'd just talk to the landlord, explain my situation, and work something out--just like I did here for UG.