GMAC Student Loans
Designed for Full- or Half Time Undergraduate Students
GMAC student loans are available to full and half time students whose parents may not be able to afford to pay outright for college expenses, but earn too much according to need-based scholarships and loans.
How Do I Qualify?
Where do you begin to find out if you qualify for a GMAC student loan? First, you must make sure you are listed as a U.S. citizen or permanent resident attending a college that offers GMAC student loans. During processing, your attendance records from the college will be checked to confirm you are taking classes at least half time. The loan processor will check your credit and employment history. Most new college students don’t have enough credit, or two-year employment history. In those cases, they may obtain a co-signor that meets their credit and employment criteria.
How To Choose a Co-signor?
A good co-signor will significantly improve your chances for a GMAC student loan approval. When you are choosing a viable co-signor make sure he or she has been employed for at least two consecutive years with proof of that employment. If your co-signor is self-employed, employment can be proven with two years of tax returns. Just like you, your co-signor must be a U.S. citizen or a 2-year permanent resident. Your co-signor must have at least a two-year record of good credit to be able to help you.
How Much Can I Borrow?
GMAC student loans have a cap on borrowing at $130,000. This means that at the beginning of each school year, you can borrow a portion of this amount to cover your educational expenses. This portion can be as much as $40,000 each year. The smallest loan GMAC will grant is $1500.
When Do I Repay?
In contrast to scholarships and grants, student loans must be paid back. Most students are not employed during school or if they are employed, are not working full time. Repayment of student loans can become a challenge for new grads. Fortunately, payments do not start until 6 months after graduation, the given grace period, and may be paid over a term of 20 years. If you continue onto grad school, you can defer payment for up to 48 months.
How Do I Apply?
Applications may be obtained from your financial aid advisor. If the advisor does not have an application, they can also be downloaded on the GMAC website. Applications may be completed at any time and responses are normally granted within 5 days. With the right co-signor, GMAC tries to mail a check within that time frame as well.
The bottom line is that GMAC Education Loans are private bank loans. They must be repaid, and to obtain the loan, you must prove that you fit the demographic that GMAC Student Loans are trying to reach and that they will get their money back. If you can meet that need, then GMAC Student Loans can be a bridge to obtaining the education you desire.