I am 21 years old. I graduated from high school in 2003, and went on
to college during the 03-04 school year. Unfortunately, I dropped out
after completing one semester. I have been out of school ever since. I
was working full-time at a mortgage company, but was laid off in April
due to the center closing. I had been employed there for 2+ years. I
am now collecting unemployment benefits (which will end in October),
while working part-time as a waitress.

I will be starting back at school this fall. Unfortunately, I don't
have the money to pay for my school outright. I'm only getting about
$2000 in government help for the year, including the Federal Stafford
Loan. I do not live with my parents; I have been on my own and
financially independent of them since November of 2004.

I don't know anyone who can co-sign on an alternative loan for me. My
mom has horrible credit, and most of my friends don't have enough
credit to qualify. My credit is in decent shape, but because of the
unemployment benefits and the short time that I've been working for
this restaurant, I am unable to get any kind of loan on my own.

I am looking for alternative loan options for people like me. My
circumstances are different and I'm running out of options. I think
it's pathetic that people like me, who are enthusiastic and excited
about starting school, can literally be turned away for not having the
money. But that's a different complaint.

I'm becoming desperate, and I don't have much time to figure this out.
At this point, I don't see any other option than to put off school, as
I simply cannot come up with the money.

Any and all help is truly appreciated. Thanks.

Have you checked with your state agency of higher education?  States
call this agency or commission by different names, but almost every
state has one.  They often provide loans to people who have already
gotten all they can out of federal funding.
http://pfp.aicpa.org/Resources/Education+Planning/Financial+Aid/Financial+Aid+Loans/State+Student+Loans.htm

That website has a little information, but nothing state specific.  If
you need help finding more info, let me know what state you're in.

The maximum Stafford loan for a freshman in the 06/07 school year is
$3,500.  If your mom's credit is bad, she can apply for a Federal PLUS
loan.  If she is denied, you can bring the denial letter to the
financial aid office at the school you attend and ask to be packaged
with additional Unsubsidized Stafford -- as much as $4,000.

NB: You can not borrow more than your school's cost of attendance
minus any other financial aid you receive.  You can find your school's
cost of attendance on the financial aid award letter you received from
the school.

If you attend a community college, you can significantly reduce your
costs.  In many cases, if you earn a high enough GPA and transfer to a
private college or university, you can qualify for merit-based
assistance from the school to which you transfer.

You might also look into outside scholarship opportunities.  A couple
places to search include:
http://www.scholarshipexperts.com/
http://www.freschinfo.com/
http://www.fastaid.com/

If your credit is decent, you might try an alternative loan from a
lender that doesn't include income as a component of their
underwriting model.  One lender you might have luck with is Campus
Door -- http://www.campusdoor.com/ (note: I am not a rep of CD).  You
can defer payment while in school and up to 12 months after you
graduate.

Good luck!

Jack, if you could do the research for me I'd really appreciate it...I
live in Pennsylvania, and would prefer to talk to someone on the phone
because of my circumstances.

Here is a scholarship search that may be useful, I got to it from the
PA Education website so it shouldn't have any scams:
http://www.educationplanner.com/ss/code/Profile1.asp?path=ug.pfs.scholarships&level=u&region=s&mode=EDIT&sponsor=2859&volume=SS&e&h


The KeystoneBEST loan program in PA looks very promising.
 http://www.pheaa.org/educationalloans/keystoneBEST.shtml

-No income requirements
-No upfront costs
-You must be eligible for Stafford loans (which you are)

I don't see a way to talk to someone representing Keystone on the
phone.  There is a link to apply online (you'll have to register and
get a pin # I think)... and there is a link for participating lenders.
 The list of lenders is rather long and you can probably find someone
in your area to go talk to or reach on the phone.

I hope this is helpful!