Bad Credit Student Loans – Fact or Myth?
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By :
Darius H Clements
Submitted
2012-05-13 00:21:44 |
Bad Credit Student Loans – Fact or Myth?
You may have seen the ads all over the internet offering bad credit student loans to those who want to further their education but have some bumps and bruises on their credit report.
You will find after several attempts at applying for these loans and being turned down every time that these loans exist and they are obtainable if you have a credit-worthy co-signer.
All student loans require an acceptable credit score and they are only approved for people who do not pose a risk to the creditor.
Lenders are going to deny your loan immediately if your credit history is poor.
Cosigner Needed
A cosigner with a good credit score will be required if you have bad credit. There are no bad student loan creditors who will let you have a loan without a cosigner. Another option is you may use any available collateral you have to secure a loan.
The only bad credit student loans with no cosigners available are student loans that are guaranteed by the federal government.
There are no private student loan lenders in the existing credit climate who will make bad credit student loans without a cosigner.
There are a number of ways to improve your chances of getting a college loan from a private lender.
Credit Repair
The first option is credit repair. This doesn't have to be a difficult task depending on how much credit repair you need. This is not an instant fix.
It may take up to a year to improve your credit score enough to be approved for a student loan.
Cosigner Options
The next step is to find a cosigner who has a good credit score and is willing to cosign your loan. For most students the obvious cosigner is their parents.
While most parents are willing to do whatever needs to be done for their son or daughter to go to college, this is not always an option. The next obvious people to ask are grandparents or other relatives who are willing and able to cosign a student loan.
Other Student Loan Options
If none of these cosigner options are available to you there are other options to explore. There are federal college loans such as the Direct Loan that doesn't requirement a credit check or repayment of the loan until after graduation unless you go below part-time status.
If you apply for a Direct Loan Plus your credit history will be checked and this loan is approved for credit-worthy applicants only. If you have applied for and received approval for all government student loans and are still short of money, then you need to look for scholarships or grants.
These are the best places to look for financing to avoid borrowing money for college.
Unconventional Student Loan Options
Other forms of bad credit financing that are unconventional and more costly are credit cards, personal loans and direct loans from family and friends. You may have to find a part-time job to work while attending college or you can ask your college about the work study program.
In Conclusion
There are ways to finance your college education with bad credit student loans.
These loans are not available through private lenders without a cosigner, but there are government guaranteed loans that you may apply for.
There are scholarships and grants to pursue and there is always the option of working part-time and attending school full-time or part-time. It is worth every effort you make to find the money you need to attend college.
Bad Credit Student Loans – Fact or Myth? By Darius H Clements
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