In dire need of advice. Tough situation

[Aveh]

I'm in a tough place and could really use some insight/advice/suggestions.

Last year I switched from Computer Science degree which I was about a semester and a half away from to pursue art as more than a hobby. I received a 24k/4year scholarship and was able to take out a 15k private loan to make up the difference from the scholarship and the governmental financial aid.

I applied to an art school and finished my first year this past may.I received a 24k/4year scholarship and was able to take out a 15k private loan to make up the difference from the scholarship and the governmental financial aid. I had a string of bad luck,my loan company went bankrupt and my co-signer took some financial risks and can no longer co-sign. And because its so close to the start of the fall semester I can't try to apply to a state or community school. So the only two options I've come up with are:

- Try to afford at least part time at the art school, so i can buy some time before the loan companies are on my back, get a part-time job and start trying to save money for next year to get a studio apt. and do the self-taught thing.

- Or try and get a deferment on the loans till next year, go back to my moms, work and save money till next fall and get into an art program at a state school. (I'm not too interested in living at my moms again either, I turned 18 and hit the ground running.)

I'm in a tight spot and the debt looming over my head is whats making me so stir crazy and nervous. I'd really appreciate the advice. Thanks.

[UrsusArctos]

Ok you definitely have more than two options.

One- have you called the school yet to inform them of your situation?

Two- what kind of loan did you take out? Isn't the FDIC insured!? You should still be able to access your money.

Three- Did you fill out a FAFSA? Is your school qualified to recieve educational loans? These are really the best for students to take out anyway, and you typically don't need a cosigner for under-graduate work. They may not offer you the full 15k you are short, but you could probably get at least 5k from them.

Four- Its definitely not to late to sign up for community college courses. I just signed up for two courses on monday, and I "formally applied" over the weekend. Community college is made to be as accessible as possible- it is still very, very likley that you can sign up for courses. And if you are worried, contact professors, tell them your plight, and I bet you'll have some luck.

Five- have you considered other Co-signers? You really don't have to have to be a millionaire to qualify to be a co-signer. Look at me- I just got out of college, I've only had a "career job" for two weeks, and yet my credit score is 720, which is very ideal. Consider other relatives that could possibly be your co-signers.

Now, I'm not sure about this loan you took out- but if they went belly-up, are they expecting you to start making payments right away, or are you still going to have time to pay them back? What would the situation have been if the company didn't go bankrupt?

since you already have 24k scholarship, I'd see what the terms are for using it. Are you still able to use it as a part time student? If yes, do that and get a job. Remember- if you drop out of school completely for a semester, you'll probably kill any kind of grace period you have going on for you anyway, which means the day you graduate you'll have a huge bill delivered to you. So, I would try to find a way to stay in school.

I will say this- the self taught thing- a helluva lot harder than it seems, especially if you are working full time! You made this huge life change when you were already so close to having a degree- I would find a way to see it through.