COA won't cover bills

[SketchLazy]

Except for Wells-Fargo, it doesn't look like they specifically state whether their loans are non-certified. Even though the check is directly sent to you, the loan may still have to be certified by your school in order to be cleared. If your school already has all your Stafford and Grad PLUS loans together, and those loans equal your total COA, they will either tell your lender to reject your certified loan or reduce your Grad Plus or Stafford loan amounts so that all your loans are exactly equal to your COA. In that case, you're getting a crappy deal because you have private loans that could have been federal loans (this might be the case for only the stingiest of FA offices, but who knows). That's why I've been so set on finding 'non-certified' loans. If they are non-certified, your school will not know how much you borrowed, and you can technically use that money for anything without having to answer to their FA office. The money going directly to you does not equal non-certified. It has to be explicitly stated. And it looks like, soon, all loans will have to be certified.

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[rgerwin]

As for MRU, if do you mean 5.6 on top of the LIBOR? I would warn that ti would be extremely unlikely to get 5.6%. Think more 9-13%

 

[SDG490]

SketchLazy, I see your point about making sure it really is uncertified. The Chase website specifically says: No financial aid forms or school certifications are required.

Are you sure PNC is uncertified (can't see mention of it on their website). Thanks!

 

[rgerwin]

Also, the current LIBOR-3month is 2.76%. With no income and average credit, my APR is closer to 12%. But, I didn't take out that much, so it doesnt really matter to me. If you can ever have a cosigner, I recommend it. My other co-signed loan is closer to 7.5%

 

[SketchLazy]

As for MRU, if do you mean 5.6 on top of the LIBOR? I would warn that ti would be extremely unlikely to get 5.6%. Think more 9-13%

When I called, 5.6% total (with great credit and a co-signer) is what the lady gave me a quote for. Based on what they say on the website though, it's more like 6.16% (current 3-month LIBOR plus 3.4% margin). But given that only a year ago, the 3-month LIBOR was 5.36%, it can easily climb to above 9% when the economy gets better and interest rates go up. I'd say that's right around the time most of us are in our residencies.

Current and past 3-month LIBOR rates: http://www.bankrate.com/brm/ratewatch/other-indices.asp

 

[SketchLazy]

SketchLazy, I see your point about making sure it really is uncertified. The Chase website specifically says: No financial aid forms or school certifications are required.

Are you sure PNC is uncertified (can't see mention of it on their website). Thanks!

I called PNC to makes sure, and the customer service rep said that their National collegiate loans are definitely uncertified. But they also suck in terms of rates and origination fees.

Edit: Chase's rates look pretty good so I will call them tomorrow to verify if they dropped uncertified loans or not. I was only going by what I saw on this thread for Chase. I much rather go with an established bank than a small lender.

 

[prionsRbad]

I called PNC to makes sure, and the customer service rep said that their National collegiate loans are definitely uncertified. But they also suck in terms of rates and origination fees.

Edit: Chase's rates look pretty good so I will call them tomorrow to verify if they dropped uncertified loans or not. I was only going by what I saw on this thread for Chase. I much rather go with an established bank than a small lender.

I'm in the process of getting a loan from PNC, so I can verify that they are definitely un-certified. My bad earlier about saying that there was no information on line about them. I applied over the phone.

I also called Chase about a private, un-certified loan and they have taken them off the market. If you try and call the application number there is a message that they are no longer available (same with the website if you try to apply on line).

Good luck to all of us trying to get extra $$$$

 

[rgerwin]

if you have average credit I can 100% guarantee you will NOT get a rate that low for MRU. Their mean credit score is over 700. Yes, they say that over the phone, but they're advertising their lowest rates. And, it will be lower for their private, certified loans.

 

[jvin2006]

I called Wachovia (snce that's my gradplus lender) about private non-cert loans. They told me to call back on May 19, which is when their new private loan offer goes into effect. Until then, they offer nothing.

Also, Wells Fargo does indeed have a private non-cert loan, however, the aggregate limit for student debt is $100,000. This means if you have over $100,000 already in student loans, you will be denied by Wells Fargo....co-signer does not help.....

 

[kdawg]

Great thread everyone.

So what is the latest info? Has anyone had recent success getting approved for a true uncertified private loan? If so, please share the lender, rate, fees, terms, etc. And, did they need to contact your school in any way?

If some could speak to this other issue as well: Does taking out a private loan impact your EFC or other aspects of your federal aid for the following year?

Also: With the apparent upcoming changes in regulation of private loans, is anyone attempting to take out maximum loans this year to cover future years just in case?!? Hate to accrue any more interest than is absolutely necessary, but there will inevitably be board fees, possible interviewing costs, and other unforeseen expenses. Plus, if I need a private loan this year I'll most likely need them in subsequent years right? So take the max or not???

 

[rgerwin]

I think my richuncle is doing them, if your FICO is above a 650-ish. That's all I know. Sorry.

 

[rgerwin]

Does anyone know when that legislation is supposed to come into effect?

 

[kdawg]

Bump

 

[lemoncurry]

EDIT: erroneous information... see my next post.

 

[rgerwin]

You asked the wrong question. They have stopped doing federal loans, and may have never done private loans above COA. The question to ask is if they get the funds certified through the school now, the answer to which I don't know. I was going to use them for stafford, b/c they were giving a 1% interest discount, but then they lowered it to 0.5%, and there are fees. Just goes to show that the best incentives are those that are given upfront. Anyway, in investigating their private loans as an alternative (for which I found a better interest rate at a loan offered through my state) I seem to remember them saying recently they sent the check directly to you. I would call back and ask this question. Otherwise, it would that those days are over. I wish I had a more definitive answer for you.

 

[lemoncurry]

rgerwin, my mistake. You are correct. I just called back and got clarification on what "beyond COA" means.

MRU does NOT get school certification, so that basically means they have no idea how much you have borrowed, but they will not allow you to borrow an amount above your COA, or 70K, whichever is lower (i think).

This is good news for me, so ignore my last post

 

[rgerwin]

I'm so glad you can get what you need. Financial crises during school are the worst. I was so concerned about my upcoming year, but husband miraculously got a decent paying job in this economy. Crazy. But it can be so year-to-year. Very stressful for type-A planners.

 

[Vith]

I'm in the same boat. I'm quitting my job next month to finish my undergrad, and *thought* I had an uncertified loan from Sallie Mae for my CoA lined up to cover my family's expenses. As of today, it turns out my school's certifying my loan, making me jump through the verification hoop, and my max amount for the loan is *after* my Staffords, VA benefits, and whatever else they decide to throw at me.
I have a mortgage and a new baby. They can't seriously expect me to get by on their CoA, which is 90% tuition and fees, can they?
Should I even bother with the Sallie Mae loan or go full speed into one of the other companies?

 

[TMP-SMX]

You need to have the school increase your CoA. Show them a budget.

 

[osli]

Some schools simply won't increase your budget for anything short of being run over by a train. Gas prices going up? Sorry. We scheduled you for a rotation that requires a 1 hour commute? Sorry. Child? Sorry, your fault. Married? Ditch her. One of the rotations we scheduled you for requires you to pay for more vaccinations, above and beyond what we and other sites require? Sorry. Can't find a roommate for that inner-city shack we budgeted? Sorry!

 

[laurafinn]

Some schools simply won't increase your budget for anything short of being run over by a train.

Too true. Especially sucks if you're going to an overseas school and they won't adjust COA for the exchange rate dropping precipitously. Excuse me while I go harvest $100 bills from my magic money tree (yeah, it's that one, next to my van down by the river).

 

[strawberryfield]

I thought Sallie Mae Tuition Answer would let you borrow above COA? I have 2 friends that used this loan last year, at the beginning of 2008 actually. I was going to use it next year to get rid of higher interest credit card debt...but I guess I can't anymore...

does anyone know if PNC and my rich uncle are still doing them? I can't believe Wells Fargo has a 100K cap, grrrrr...what are the 3rd and 4th yr students supposed to do?

also, does anyone know how much a cosigner makes a difference in interest rates, say with My Rich Uncle? I know my dad would cosign if I asked, but if it's not much of a difference, I'd just take the higher rate for just myself on the loan.

 

[rgerwin]

The SM loan still exists, but I've heard the list of participating schools is limited.

 

[strawberryfield]

The SM loan still exists, but I've heard the list of participating schools is limited.

the website says:
"If you choose to borrow only through Tuition Answer to pay for your education expenses or if you will be using Tuition Answer in addition to other student loan programs, the total of all your loan proceeds may not exceed the calculated cost of attendance at your school."

but I know people who have used this loan and gotten above COA by the end of the year...how do I know if they certify or not?

 

[babel]

the website says:
"If you choose to borrow only through Tuition Answer to pay for your education expenses or if you will be using Tuition Answer in addition to other student loan programs, the total of all your loan proceeds may not exceed the calculated cost of attendance at your school."

but I know people who have used this loan and gotten above COA by the end of the year...how do I know if they certify or not?

It looked to me like the SM Tuition Answer loan is definitely "certified" now - unless they're on the honor system (i.e. they don't contact your school), in which case I suppose you could tell them whatever you want re: COA - other aid, but I don't think any of us are looking to be sneaky.

Basically, I get the impression that a lot has changed in the last few months since this thread was started - given the credit crisis and related legislation, there just aren't many options now for those of us in this situation.

One thing I did come across was the Wells Fargo Education Connection Loan, which states explicitly that it does not require certification, so this may be an option - though you need an income of at least $12,000 or a cosigner, and there is a $100,000 loan limit including other educational debt, which may be a problem if you are already a 3rd or 4th year:

https://www.wellsfargo.com/student/graduate/education/

 

[strawberryfield]

It looked to me like the SM Tuition Answer loan is definitely "certified" now - unless they're on the honor system (i.e. they don't contact your school), in which case I suppose you could tell them whatever you want re: COA - other aid, but I don't think any of us are looking to be sneaky.

Basically, I get the impression that a lot has changed in the last few months since this thread was started - given the credit crisis and related legislation, there just aren't many options now for those of us in this situation.

One thing I did come across was the Wells Fargo Education Connection Loan, which states explicitly that it does not require certification, so this may be an option - though you need an income of at least $12,000 or a cosigner, and there is a $100,000 loan limit including other educational debt, which may be a problem if you are already a 3rd or 4th year:

https://www.wellsfargo.com/student/graduate/education/

yup...I'm entering third year, already have just over 100K for the first 2 yrs...

 

[babel]

yup...I'm entering third year, already have just over 100K for the first 2 yrs...

I'm sorry to hear that..... I'm just starting my 2nd year, and will definitely be well over $100K by the end of the year myself. I'll let you know if I find anything else. This whole process has just become ridiculously difficult.

 

[akpete]

My Rich Uncle appears to be a decent choice still. I think I'll be applying to them.

 

[strawberryfield]

I'm sorry to hear that..... I'm just starting my 2nd year, and will definitely be well over $100K by the end of the year myself. I'll let you know if I find anything else. This whole process has just become ridiculously difficult.

anyone heard about this wells fargo loan called MedCAP-XTRA??? I thought it was just for residency/relocation, but...from the way I am reading it...almost looks like you can also borrow up to 10K for "board related" expenses as long as you are at least in your second year. It also doesn't have the 100K cap that the other wells fargo private loan had, but rather a 250K cap for all loans total. anyone know anything about this?? anyone??

about the loan and eligibility requirements

I also wonder if you borrow for "boards" during/after 2nd year for 10K...can you still take the residency/relocation loan for up to 15K during 4th year??

 

[strawberryfield]

My Rich Uncle appears to be a decent choice still. I think I'll be applying to them.

M.R.U. doesn't have my school listed on the loan application. I emailed them to ask if that meant they couldn't give me a private loan and I never got a response back ...anyone else's school not listed on their website but were still able to borrow from them?

 

[babel]

anyone heard about this wells fargo loan called MedCAP-XTRA??? I thought it was just for residency/relocation, but...from the way I am reading it...almost looks like you can also borrow up to 10K for "board related" expenses as long as you are at least in your second year. It also doesn't have the 100K cap that the other wells fargo private loan had, but rather a 250K cap for all loans total. anyone know anything about this?? anyone??

about the loan and eligibility requirements

I also wonder if you borrow for "boards" during/after 2nd year for 10K...can you still take the residency/relocation loan for up to 15K during 4th year??

Hmmm...... no personal experience with this loan myself, but it does look promising, especially since you can include "living expenses" in the board prep geared loan. And it seems to me like you would be eligible to apply for the residency/relocation loan later, since it simply stipulates that you must be in your final year in an accredited program. I had come across this loan myself previously, but hadn't even considered it - good thinking on this one!! If you can, I would just give them a call and ask them directly - the only concern would be if they certify it through your school, but I get the impression that they don't (these loans are clearly separate from the normal COA stuff). Let us know how it turns out!!

 

[rgerwin]

I'm going to to guess that since the purpose is for residency, technically, it's probably a one-shot deal. But, give them a call. The interest rates on those can certainly be often better.

 

[babel]

I'm going to to guess that since the purpose is for residency, technically, it's probably a one-shot deal. But, give them a call. The interest rates on those can certainly be often better.

Well, it actually seems like there are 2 categories for medical students:

"$1,000-$12,500 for medical boards and clinical exams, including review courses, exam costs, and living expenses

$1,000 - $15,000 for residency interview and relocation (up to $5,000 for interview travel and $10,000 for relocation) for allopathic and osteopathic medicine, chiropractic, dentistry, optometry, podiatry, and veterinary medicine students"

Perhaps I am being overly optimistic, but I figured since they listed these categories separately, with separate limits and eligibility requirements (being at least a 2nd year for the first, and being in your final year for the second) that you would be able to borrow for both, at different times. Hopefully strawberryfield will let us know what she finds out...........

Any more info/advice on MRU? I am considering putting in an application to them once I get my other fin aid straightened out (since I will have to go through a credit check if I end up taking out GradPlus loans). I wish their website had more info on the terms - for example, do you know if there is any early repayment penalty? Also, does your school have to be on their "list" (as sf mentioned) - if so, is it anywhere other than on the app?

I know, I know............. I just need to get off my lazy behind and call them!

 

[rgerwin]

Well, MRU is still an educational loan company. No early penalties, just higher interest.

 

[strawberryfield]

Well, it actually seems like there are 2 categories for medical students:

"$1,000-$12,500 for medical boards and clinical exams, including review courses, exam costs, and living expenses

$1,000 - $15,000 for residency interview and relocation (up to $5,000 for interview travel and $10,000 for relocation) for allopathic and osteopathic medicine, chiropractic, dentistry, optometry, podiatry, and veterinary medicine students"

Perhaps I am being overly optimistic, but I figured since they listed these categories separately, with separate limits and eligibility requirements (being at least a 2nd year for the first, and being in your final year for the second) that you would be able to borrow for both, at different times. Hopefully strawberryfield will let us know what she finds out...........

Any more info/advice on MRU? I am considering putting in an application to them once I get my other fin aid straightened out (since I will have to go through a credit check if I end up taking out GradPlus loans). I wish their website had more info on the terms - for example, do you know if there is any early repayment penalty? Also, does your school have to be on their "list" (as sf mentioned) - if so, is it anywhere other than on the app?

I know, I know............. I just need to get off my lazy behind and call them!

fyi...the "credit check" on grad plus is "lenient"...I think that means that they don't look at income/debt ratio or how far your credit cards are charged, up, I think they just make sure you don't have 90 days past due, bankruptcies and things of that sort...don't know for sure, I have ok credit, nothing late or charged off, just a high debt/income ratio and some cc debt that is being very slowly paid off.

I haven't called wells fargo yet...I've had a boatload of stuff going on on top of studying for usmle step 1...so, I'll post as soon as I find anything out about this one!

 

[babel]

fyi...the "credit check" on grad plus is "lenient"...I think that means that they don't look at income/debt ratio or how far your credit cards are charged, up, I think they just make sure you don't have 90 days past due, bankruptcies and things of that sort...don't know for sure, I have ok credit, nothing late or charged off, just a high debt/income ratio and some cc debt that is being very slowly paid off.

I haven't called wells fargo yet...I've had a boatload of stuff going on on top of studying for usmle step 1...so, I'll post as soon as I find anything out about this one!

Thanks for the reassurance on the Plus loans........ I guess I was just thinking along the lines of how having a credit check can lower your credit, and not wanting to negatively impact the check for the Plus loans at all - but I guess you are right not to worry, since they say only look at whether or not you have ever been late on payments etc. In any case, I am hoping my school will have that wrapped up by the end of next week, and then I'll start looking into applying for these other loans.

Good luck studying for Step 1!! Our second year is really short, so I'll be studying for it myself in about 7mo.....

 

[akpete]

So My Rich Uncle is NOT, repeat NOT, lending above COA. I completed all the paperwork, sent in verification of enrollment, copies of my mom's tax returns, copies of mine and her's drivers licenses. Then after they received everything they listed as requirements from me, I got an email stating that they need a copy of my financial aid letter because they only borrow up to the COA.

So unless I commit fraud (and I am tempted), I can not get funds from them.

 

[rgerwin]

Is the money certified through the school?

 

[babel]

So My Rich Uncle is NOT, repeat NOT, lending above COA. I completed all the paperwork, sent in verification of enrollment, copies of my mom's tax returns, copies of mine and her's drivers licenses. Then after they received everything they listed as requirements from me, I got an email stating that they need a copy of my financial aid letter because they only borrow up to the COA.

So unless I commit fraud (and I am tempted), I can not get funds from them.

Wow, that really sucks...... they were my back-up, too.

Well, it sounds like the one last possibility is the Wells Fargo loan (see links in post #79 above). If you are 2nd year or later, you should be able to get up to $12,500 for "medical boards and clinical exams..... including living expenses".

Any chance you can get a COA increase from your school? Does your budget fully cover your rent, utilities, phone(s), internet, car, gas, food etc etc? I know you must have some bills that your school won't consider in their COA (I know I have credit debt to deal with), but this would certainly be a good place to start - I just submitted a request to my school to increase my COA :fingers-crossed:.

Good luck!

 

[rgerwin]

Wait! Before everyone starts freaking out, make sure to find out how the loan is disbursed! My husband got this same kind of loan a few years ago, and they wouldn't loan above his COA either, but sent the check to him, so it was irrelevant.

 

[babel]

Wait! Before everyone starts freaking out, make sure to find out how the loan is disbursed! My husband got this same kind of loan a few years ago, and they wouldn't loan above his COA either, but sent the check to him, so it was irrelevant.

rgerwin: I don't understand - so they said they couldn't give your husband the money, but then did anyway? Please explain......

akpete: This is probably a real stretch, but is there any possibility that they mean that the total amount that they give you simply cannot exceed your COA, without considering your other aid? For example, if your COA is $40K, they could loan you up to that (even if technically you already have that covered by Staffords, for example) but no more? Just a last ditch hope kind of thought. Because if that were the case, you could just send them a print out of your COA (e.g. tuition = x, rent = y, health ins = z etc).

If not, I would have to say that the above COA private loans are now completely wiped out.......

 

[rgerwin]

Sorry to be confusing. Exams=jumbled brain. I wanted to say what you just said. They won't loan you mor than your COA, but with my husband, they sent him his COA and disregarded any other aid b/c it wasn't certified. Basically, it's not like he could borrow an infinite amount.

 

[AMDFAO]

Earlier this week the President signed new legislation that requires "a private educational lender, on or before the date on which the private educational lender issues any funds with respect to a private educational loan, to notify the relevant institution og higher education of the amount of the loan and the student on whose behalf the loan is made." From there a school is required to adjust your award so that the combo of all you aid does not exceed your COA. Schols are required to provide some form containing info about your COA and award and I believe the lender will only disburse the difference. Basically, you're not getting more money, just a different type to meet your cost. All of the lenders will want to be in compliance of the law, trust me on that one. The effective date I believe was the day GW signed it but it could have a July 09 effective date. For those of you dependent upon "above the COA" stuff to meet your expenses I would encourage you to work out a good plan to eliminate them.
I'm not sure what happens to the traditional relocation loan but will let you all know when I do.

 

[akpete]

Earlier this week the President signed new legislation that requires "a private educational lender, on or before the date on which the private educational lender issues any funds with respect to a private educational loan, to notify the relevant institution og higher education of the amount of the loan and the student on whose behalf the loan is made." From there a school is required to adjust your award so that the combo of all you aid does not exceed your COA. Schols are required to provide some form containing info about your COA and award and I believe the lender will only disburse the difference. Basically, you're not getting more money, just a different type to meet your cost. All of the lenders will want to be in compliance of the law, trust me on that one. The effective date I believe was the day GW signed it but it could have a July 09 effective date. For those of you dependent upon "above the COA" stuff to meet your expenses I would encourage you to work out a good plan to eliminate them.
I'm not sure what happens to the traditional relocation loan but will let you all know when I do.

So I was in my financial aid office this afternoon, and all of the above is true. Most parts of that bill went into effect upon signing; however, the part about the non-cert loans is vague, and has not been in affect yet. And my financial aid director is currently trying to figure that out, but it is unclear.

The really bad part about this legislation is that not only are non-cert loans going away, but this also includes residency/relocation loans. Likely in the future, residency interview costs will be worked into the COA, but they cannot do that for relocation costs because you have graduated at that point.

On the My Rich Uncle thing, they do not go through the school at all, but once your paperwork is in, they ask for your financial aid award letter and tuition bill. They state at that point they do not borrow over COA. Sure, you could fake it or claim you don't have aid and not send one, but that I would think would be fraud, and I'm not willing to take that chance. Thanks to everyone that responded to my post.

Fortunately, even though I searched and didn't come up with anything, my awesome financial aid director found that Chase is, at this moment, offering non-cert private loans, so I'm getting one from them. So my situation will turn out okay. Future years will not be so lucky.

 

[rgerwin]

Obviously, if you've graduated, the relocation loan will stll be an option, but what about board review?And how are residency interview costs associated with education at all if it's for something that will happen after you graduate? Is there anywhere we can find this more solidly outlined?

 

[akpete]

Obviously, if you've graduated, the relocation loan will stll be an option, but what about board review?And how are residency interview costs associated with education at all if it's for something that will happen after you graduate? Is there anywhere we can find this more solidly outlined?

not really. the financial aid offices are still trying to figure out what will happen in the future.

 

[mshheaddoc]

not really. the financial aid offices are still trying to figure out what will happen in the future.

This is ashame because finding some above COA loans were a PITA to begin with and its making it harder and harder for students to get by with the expense of professional/graduate schools increasing yet financial aid isn't covering everything!!! We couldn't have made it 4th year without private loans AND a relocation loan. We just spent about $2000 to get my husband's medical license/Step 3 without credit cards to help ease the burden, not sure what we would have done!!!

 

[lemoncurry]

So My Rich Uncle is NOT, repeat NOT, lending above COA. I completed all the paperwork, sent in verification of enrollment, copies of my mom's tax returns, copies of mine and her's drivers licenses. Then after they received everything they listed as requirements from me, I got an email stating that they need a copy of my financial aid letter because they only borrow up to the COA.

So unless I commit fraud (and I am tempted), I can not get funds from them.

I am so pissed because I just experienced the same thing. I actually had to get on the horn and beg them to reconsider my file to begin with, and then i went through all that crap only to get the same response.

MRU is not the "different" lender they advertise to be.

 

[akpete]

So if anyone out there still needs a non-cert loan, I highly recommend Chase. #1 easy to deal with and didn't jerk me around. and #2 basically the only non-cert loan still out there with the current market and legislature. If you need this loan though, I would apply quickly because it's hard to say when it will go away.

 

[babel]

So if anyone out there still needs a non-cert loan, I highly recommend Chase. #1 easy to deal with and didn't jerk me around. and #2 basically the only non-cert loan still out there with the current market and legislature. If you need this loan though, I would apply quickly because it's hard to say when it will go away.

Hey, that's great that went so well for you, akpete!

Could you share which loan you took out from them - just their "private student loan"? I'm never sure of the terminology - that one mentions that "financial aid forms are not required" - is that the "non-certified" part? Thanks!