Getting a student loan with bad credit

Having bad credit sucks. Trying to get a student loan while you have bad credit is even worse. Many people choose to give up on education because of bad credit. There are other ways if you are determined.

Counseling

If you know about your bad credit, pick the school you want to go to and go talk to their financial aid office to get personalized attention. Many times they will give someone for counseling on basic personal finance principles. This a long term fix. Short term, a loan counselor is probably able to direct you to appropriate lenders

Federal student loans

Need to know a very good way to get money for college? Government sponsored programs make a certain amount of money available each year to students at a low fixed interest rate. These loans, called Stafford and Perkins loans, are available to any US college student and often do not require a credit check.

Private student loans

Private student loans are a source of college funding intended to supplement, not replace, federal student loans. However, for many students, federal loans aren’t enough to cover college costs. In this case, private student loans can be a good option. They are offered by Sallie Mae and other private banks, and it is really important to shop around and compare the offers. Some will have special offers for students who have bad credit.

Getting a cosigner

Most private student loans applicants are required to have a cosigner, especially undergraduates or students who don’t have a steady income or credit history. The cosigner is required to sign the loan document, but the student is the primary borrower. By signing, the cosigner agrees to be fully responsible for repaying the loan if the student does not fulfill his or her obligations.

 

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