Weird topic- Anything like an "angel investor" for student loans

7 Replies

This is a little off topic- but I have a question for anyone that may know. Is there anything like an angel investor for student loans or a way to locate cosigners that are out of the family? I have 140k in student loan debt and am working a sales job because I don't want to join the rat race in engineering (which I got my degree in). I am working sales since it is vital for my future real estate career and life goals. I have to refinance my student loans but I can't get approved without a cosigner and my parents absolutely WILL NOT help me with them. It is 100% out of the question. The thing that the student loan refinance companies don't take into consideration is anything more than salary. I have 3 drop shipping businesses that I've started in the last 4 months and have some very promising investments in crypto currencies that I believe will take off in Q3 of 2018. I have no doubt I will be a millionaire by the end of 2018 but that's not something that the loan companies account for and all they see is my small salary. Is there any other more personal option that could be used to get approved for refinancing? Someone that would account for these personal assets, or a cosigner that I could "rent" and pay like $50 a month to that would cosign my loans. I have to think something like that exists. I just can't find any information online for anything like it. 

I have heard of investors who help pay for a students education and then take a cut of their salary after they get a job.  Investors are paying college students' tuition — but they want a share of future income in return.  I doubt you would qualify, though, since you have a degree you're not using.  And the ones I read about do this before the school time, not after.

But I don't get what's going on now.  You're already out of school, it sounds like.  So you're already making payments on these loans or will be soon.  Can you defer payments or negotiate reduced payments?  Why do you need to refi these loans at all?  When someone co-signs a loan they're are taking on 100% responsibility for the loan.  Your "business plan" (drop shipping and crypto currencies) doesn't sound very convincing to me.

Sorry, but you've made a seriously bad financial decision to spend $140K on a degree you don't really want.  Hopefully your new financial plan will bail you out.

Originally posted by @Jon Holdman :

I have heard of investors who help pay for a students education and then take a cut of their salary after they get a job.  Investors are paying college students' tuition — but they want a share of future income in return.  I doubt you would qualify, though, since you have a degree you're not using.  And the ones I read about do this before the school time, not after.

But I don't get what's going on now.  You're already out of school, it sounds like.  So you're already making payments on these loans or will be soon.  Can you defer payments or negotiate reduced payments?  Why do you need to refi these loans at all?  When someone co-signs a loan they're are taking on 100% responsibility for the loan.  Your "business plan" (drop shipping and crypto currencies) doesn't sound very convincing to me.

Sorry, but you've made a seriously bad financial decision to spend $140K on a degree you don't really want.  Hopefully your new financial plan will bail you out.

 Thanks for your feedback, Jon. I have deferred them temporarily but I need to start paying in January. I have to refinance because I must get my parents freed from the loans that they originally cosigned, but I can't get approved without someone else to cosign. That's why I was asking if there was any system to "rent" a cosigner. And yeah, I probably shouldn't have continued with my education once I decided I didn't want a career in it- but try explaining that you want to drop out from your engineering degree you've got fantastic grades in at the age of 20 and try to withstand that adversity. I was just being young and stupid and didn't stand up for myself but it is what it is. Too late now. That's why I've got to move forward with it and I'm trying to find a new, creative way to help me lower my payments and free my broke parents from this financial stress. And don't doubt the drop shipping, it is a perfect business model and I have it very well-crafted. 

@Madeleine Duprez

Unfortunately, I do not have any suggestions for your question about co-signers so sorry that I can't help you there but I have a question..  You say you plan on being a millionaire by the end of 2018 (congrats!)  If that truly is the case, why don't you just pay off your massive student loans with a portion of the million dollars?  If its a huge burden to your family, why not put that money to use to reduce the stress.  Am I missing something here?

Originally posted by @Christopher Giannino :

@Madeleine Duprez

Unfortunately, I do not have any suggestions for your question about co-signers so sorry that I can't help you there but I have a question..  You say you plan on being a millionaire by the end of 2018 (congrats!)  If that truly is the case, why don't you just pay off your massive student loans with a portion of the million dollars?  If its a huge burden to your family, why not put that money to use to reduce the stress.  Am I missing something here?

 I absolutely intend to! I plan to have them paid off with 1 write of a check sometime next year. I will be a millionaire (confidence is key, right?)....the problem is that I'm not a millionaire YET. Right now I'm just starting my businesses and waiting for my investment seeds that I've planted to grow into a large money forest.

@Madeleine Duprez
I think it would/will be very difficult to find someone to co-sign on your confidence in future income. I think your confidence is great and that fire will help you build your businesses. But from an investor standpoint co-signing your loans would be very risky.

Anyways, here’s an option that might help. You could continue your businesses, get a paycheck/full benefits, and get help paying back your loans.You could possibly join the military as an officer too since you have your degree.

http://www.military.com/Resources/ResourcesContent/0,13964,44245--,00.html

Such things do exist. They're called credit partners.  People do such deals.  IMHO, this is very risky for the co-signer.  But people do engage in such deals.  Now, with a real estate deal, the loan is secured by a piece of real estate that is likely to have some value even if the deal goes bad.  You're asking for someone to borrow $140K and hand it to you with no security at all.  That's the sort of thing mom's and dad's do, not strangers.

I'm not calling into question your plan to build a business.  I hope you're wildly successful.   I am calling into question the pitch you would make to someone to take out this loan.  If you had a steady job that would cover the payments you would have a better case.  But you don't.  You have a business plan that you're asking someone to invest in.  A plan that may produce income in the future but is apparently not producing income right now.  That's a much tougher sell.

If its essential that you get mom and dad off these loans very soon then my advice is go get a job.  You have the degree.  Maybe its not what you want to do.  Believe me I do understand that.  But if you truly need to get mom and dad off these loans its what you need to do.

Originally posted by @Jon Holdman :

Such things do exist. They're called credit partners.  People do such deals.  IMHO, this is very risky for the co-signer.  But people do engage in such deals.  Now, with a real estate deal, the loan is secured by a piece of real estate that is likely to have some value even if the deal goes bad.  You're asking for someone to borrow $140K and hand it to you with no security at all.  That's the sort of thing mom's and dad's do, not strangers.

I'm not calling into question your plan to build a business.  I hope you're wildly successful.   I am calling into question the pitch you would make to someone to take out this loan.  If you had a steady job that would cover the payments you would have a better case.  But you don't.  You have a business plan that you're asking someone to invest in.  A plan that may produce income in the future but is apparently not producing income right now.  That's a much tougher sell.

If its essential that you get mom and dad off these loans very soon then my advice is go get a job.  You have the degree.  Maybe its not what you want to do.  Believe me I do understand that.  But if you truly need to get mom and dad off these loans its what you need to do.

I do have a "real job" already and my businesses are producing income- I can easily afford payments. My ONLY issue is that my parents personally need their names off of these loans and since typical banks don't allow me to claim my business' income (my LLC is only 4 months old- they must be 2 years old before they will count them) they are only accounting for my small pre-commission base salary (like I mentioned, I am in sales). I am explaining all of this to you directly and you're still under the impression that I'm some poor kid that doesn't have any income or work... and I'm explicitly telling you I have 4 streams of income. Imagine how difficult it is to get a bank to see that when all I have is an application and no way to get them to see anything beyond a 9-5. Thank you for the feedback on the IMHO. I will definitely look into that and I have no doubt that anyone sensible would hear me out and account for my income from the business', then would have no problem cosigning. Thank you, Jon.

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