Bad Credit Student Loans
If you are just now deciding to go to college you may be discouraged because you have bad credit. Students with bad credit usually have a harder time applying for and qualifying for loans. This is understandable because lenders are in business to make money and want to make sure that the people they lend to have the ability to pay it back. If you fit in the bad credit category don't worry there is likely still a way for you to get a loan.
After being denied for a good loan your next step should be to go to family members and ask for a co-signer. If your mom, dad, brother, grandma, etc has good credit and is willing to co-sign for a loan then you will likely not have any trouble at all securing a loan under good terms.
Co-signers help students with bad credit because the lenders look at not just you but the co-signers payment history and decide if both of you are credit worthy. If your co-signer has a long and established credit history then you should have no problem. The co-signing option is a good one due to the excellent terms under which your loan will be approved.
After looking for a co-signer your next step should be to contact several banks and student loan companies. Many of them have divisions that deal specifically with students with bad credit. While the terms of the loan will likely be less then ideal, the option is there and you should look into it.
This isn't as bad as it sounds however. Since college usually takes four to five years you will have time to rebuild your credit history and when it is time to pay off your loans you can likely refinance them at a lower rate. And since you will have a better job it will be that much easier.
The next option is to apply for a combination loan. Combo loans are essentially so that you can consolidate your debt and pay a lower rate overall. If you have some debt at 12, 18, and 20 percent then once you have consolidated your loans you will likely be paying around 14 percent for the entire thing. This will help bring down the overall payment. And again if you are able to fix your credit scores then over time you can get lower and lower rates.
If you haven't filled out a Stafford or Perkins loan application then you should do that next. Perkins and Stafford loans are specifically in place to help people that need financial aid go to school. If your college is an accredited institution you will be able to apply for and likely qualify for one of these loans. Another benefit is that they usually have fairly low interest rates.
So don't be shy and register for every possible loan and grant. You will get denied on several but you only need one or two to go to college. In fact if you really want to go to college and yet you have bad credit you should search online for scholarships and grants. There are literally thousands of options available to you and many that go unused each year. If you don't mind filling out some paperwork you may be able to go to school at no charge.
After being denied for a good loan your next step should be to go to family members and ask for a co-signer. If your mom, dad, brother, grandma, etc has good credit and is willing to co-sign for a loan then you will likely not have any trouble at all securing a loan under good terms.
Co-signers help students with bad credit because the lenders look at not just you but the co-signers payment history and decide if both of you are credit worthy. If your co-signer has a long and established credit history then you should have no problem. The co-signing option is a good one due to the excellent terms under which your loan will be approved.
After looking for a co-signer your next step should be to contact several banks and student loan companies. Many of them have divisions that deal specifically with students with bad credit. While the terms of the loan will likely be less then ideal, the option is there and you should look into it.
This isn't as bad as it sounds however. Since college usually takes four to five years you will have time to rebuild your credit history and when it is time to pay off your loans you can likely refinance them at a lower rate. And since you will have a better job it will be that much easier.
The next option is to apply for a combination loan. Combo loans are essentially so that you can consolidate your debt and pay a lower rate overall. If you have some debt at 12, 18, and 20 percent then once you have consolidated your loans you will likely be paying around 14 percent for the entire thing. This will help bring down the overall payment. And again if you are able to fix your credit scores then over time you can get lower and lower rates.
If you haven't filled out a Stafford or Perkins loan application then you should do that next. Perkins and Stafford loans are specifically in place to help people that need financial aid go to school. If your college is an accredited institution you will be able to apply for and likely qualify for one of these loans. Another benefit is that they usually have fairly low interest rates.
So don't be shy and register for every possible loan and grant. You will get denied on several but you only need one or two to go to college. In fact if you really want to go to college and yet you have bad credit you should search online for scholarships and grants. There are literally thousands of options available to you and many that go unused each year. If you don't mind filling out some paperwork you may be able to go to school at no charge.
About the Author:
Bob helps high school kids who are looking for a bad credit private student loan so that they can pay for school. He also shows students how to secure and find student loans for bad credit through private lenders, when necessary.
posted by Debt Consolidation Loan at
2:33 AM
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