This is an interesting student loan application for $5000-$6000 dollars in Ft Lauderdale, Florida. Usually at CLF we focus on student loan applicants in the State of California, but because this student loan is a little different, we thought we would post it anyway. This applicant is struggling to get approved for a student loan because his job qualifications have changed with the times. He has been working in the Professional Martitime industry as a Tugboat Enginneer for over 7 years and all of a sudden he is out of a job because all companies are required to have Tug Boat operators fully licensed – a U.S.C.G Engineering Certificate to be exact.

This is a common request in any industry where some form of education and licensing is suddenly required. You see this happen in the Aviation industry as well. Unlicensed Mechanics who have been working for decades without issue are all of sudden out of a job because the Airlines change their employment policies and require anyone who works on the aircraft to be certified and licensed. It’s unfortunate, but anytime safety is the key factor when hiring, perhaps it makes sense.

So for this student loan we will be figuring out the exact cost of a $6000 dollar loan. We’ll go with applicants higher loan request and we’ll use his criteria as far as length of term. He said he would be able to pay of the loan in 18 – 24 months (1.5 to 2 years time). We’ll also use different annual percentage rates for a broader sense of the loan.

Type of Loan :: Student Loan for Engineering Certification

Why do you need a loan? :: To complete my U.S.C.G Engineering Certification. Training will be completed at Maritime Professional Training in Ft Lauderdale Fla.

How Much Do You Want To Borrow? :: Between $5K – $6K

Length of Employment :: Over 5 Years

Time at Address :: Over 5 Years

Age :: Over 40

Anything else that would help us get your loan approved :: I was laid off due to the fact that I did not have the new U.S.C.G required documentation to continue in my profession as a Tugboat Engineer, I have been in this field for 7 years and love the work. I did not qualify for the GI Bill due to my time out of service. My unemployment income has been exhausted and I am now living on my retirement and some savings. I need help please. The loan could be paid back over a 18 0r 24 month period – sooner if I complete the schooling. I have been applying to various maritime companies and they all require a license.

Sex :: Male

Marital Status :: Divorced

Ever Claimed Bankrupcty? :: No – never

What City, Country, and State is Your Primary Address :: Ft Lauderdale, Florida, United States

Have you checked your credit report recently? :: Yes

Would you consider your credit rating to be? :: Poor

Collateral? :: No

Down Payment? :: No

Do you a have co-signer or co-borrower? :: No

Employment Industry, Title, Experience, Background :: U.S Army Retired, Maritime Industry as an unlicensed engineer.

$6000 Dollar Student Loan at 8% Interest for 2 Years

For this first loan calculation we will use a loan amount of 6000 dollars, at an APR of 8 percent, and a full term of 24 months (or 2 years). This is likely the education loan he would qualify for if approved by a bank or private lender.

Principal Student Loan = $6000
Length of Term = 2 years
APR (Interest rate) = 8%
Payment Schedule = Biweekly

6000 Dollar Student Loan at 8% Over 24 Months

Total Amount to be paid = $6,489.23
Total amount of interest = $489.23
Payments = $124.45 (biweekly)

So not bad – total interest paid over the 24 months is fairly low, at  just under $500, and the total payment responsibility each month is close to $250 dollars. This is manageable if the applicant/borrower has employment in his chosen field. He has to put a roof over his head, pay his Student Loan payment, eat, pay for clothing, transportation, utilities, and various other expenses. In the Student Loans world this a very small price to pay in order to secure a good job – especially a job that you love.

$6000 Student Loan at 12% Interest for 1.5 Years

Our applicant mentioned that he could pay off the loan in 18 months, or 1.5 years. So let’s put together a loan with these numbers. For this loan, because the applicant has poor credit, let us assume the lender is a private lender, and wants to charge a higher APR of 12 percent due to the applicant’s low FICO score.

Principal Student Loan = $6000
Length of Term = 1.5 years (18 months)
APR (Interest rate) = 12% (for low FICO score)
Payment Schedule = Monthly

$6000 Dollar Student Loan at 12% Over 18 Months

Total Amount to be paid = $6,569.89
Total amount of interest = $569.89
Payments = $359.99 (monthly) 

OK – so now we see the monthly payments on his Student Loan have jumped up to $360 as apposed the prior lending agreement which was at around $250 paid out each month to the lender. The total interest paid on the loan for the shorter term is a little bit more that before – just shy of $570. Either way he wants to pay down his student loan, the interest is going to be about the same – not bad at all.

I would suggest the borrower and the lender choose the latter option and go for a length of term that is shorter. I would even go as short as one year so as to pay of the loan ASAP. The sooner you can clear of debts that cost you a monthly payment the better.