Should I do this or is it a mistake?

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toocreatives
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Should I do this or is it a mistake?

Postby toocreatives » Sun Sep 23, 2012 7:08 pm

Hi!
I did a 3k student credit last year with the obligation of finishing my degree. However, I didn't finished it. Had I pass I would only pay interest for one year and then pay it (with interest as well) for 2 years.

Now I have 2 options: 1) ask for the deferred period (interest only) to continue (by writing a letter to the bank explaining the situation) or 2) ask for a student loan (by the bank itself, instead of the federal loan I got earlier) to cover: the loan I got previously, to pay my tuition this year and save some because I might need a tutor and I'd like to work abroad.

The problem with option 2 is that I need my dad to co-sign but he doesn't like banks (and because he recently wanted a loan and the bank said no). The maximum value I can get is 7k.
I have a (precarious) job (that I hate) that pays me around 300/month but with some finance-juggling I can pay my tuition, my day-to-day living and save a (small) bit but I cannot save for living abroad or any other plans.

What should I do? Take option 1 and only have a 3k debt. Or take option 2, pay my 3k debt and this year tuition and invest the money I don't need now but end up with a 7k debt?

Thanks

Tightwad
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Re: Should I do this or is it a mistake?

Postby Tightwad » Sun Sep 23, 2012 8:25 pm

Option 1 seems like your only choice. If dad got turned down once by a bank then chances are he has issues with his own credit & won't be able to cosign for option 2.

DoingHomework
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Re: Should I do this or is it a mistake?

Postby DoingHomework » Mon Sep 24, 2012 9:11 am

I suggest Option 1.

Why would you take on more debt to work overseas? And why would you take on debt you do not need?

If you want to work abroad then your best bet is to finish your degree so you have better qualifications then get hired for a job overseas! While I think studying or working abroad is a tremendously good opportunity, it does not sound liek you have teh resources to do so at this point.

jorgeb
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Re: Should I do this or is it a mistake?

Postby jorgeb » Thu Oct 25, 2012 6:18 pm

Option 1 is the best option here. Just like what others have stated, incurring more debt is just out of the question. If you can't already pay what you loaned, why loan some more? Yes, you'll get to pay your previous loan, but you'll still have a loan to pay either way. And this time, it's even twice as much as the one you previously had. It's a great solution for your present endeavors, but it's creating more problems that way.

So just stick to solution one and save up with the wage you're getting so you can get a tutor. Also, perhaps you could get a scholarship or find a sponsor?

dougmccoy
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Re: Should I do this or is it a mistake?

Postby dougmccoy » Wed Apr 17, 2013 12:34 pm

obviously, option 1 is the best way to go. goodluck with your studies!
The ReCreation King!

Jerry
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Re: Should I do this or is it a mistake?

Postby Jerry » Thu Apr 18, 2013 1:24 am

I too agree that, given your situation, Option 1 will be a better choice. There are chances that your lender will agree to a deferred payments.
Jerry
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