Bad Credit Private Student Loan
What do you do when you have bad credit and you need to get a student loan through a private company? It might seem like there s just no way you ll be able to get a loan to attend school, but really, there is hope on the horizon. Just because you have bad credit doesn’t mean there s no way you can get a private student loan.
You can start by looking into government subsidized loans such as the Stafford Loan. These are loans that you can obtain through your school and you don t have to repay them until six months after you graduate. The interest rate on these loans is usually quite low making it affordable for you to repay after graduation.
Another option for you to look at when trying to find a private student loan when you have bad credit is to have your parents get a PLUS loan. This will be in their name and will also be at a lower interest rate. Your bad credit won t be an issue since the loan approval will be made solely on their credit rating not yours. Of course, it will have to be paid back probably by you, but your parents will be responsible for the payments, so you ll want to make those payments and not risk the wrath of your parents!
There are also many private student loan companies you can explore when you have bad credit. Start by contacting your local bank where you have your checking or savings account. Explain to them your situation and why you have bad credit. Since you have a relationship with them already, the likelihood of them approving a loan for you is better than if you work with another financial institution that doesn t know you at all.
You can get a private student loan also by having a co-signer with good credit that will offset your bad credit. Most often, this is a parent or grandparent. It works just like any other loan with a co-signer. They are saying that you will make the payments or they will have to if you fail to follow through on your loan agreement. Again, it s important to make timely payments if you have a co-signer on your student loan as missed payments can affect not only your credit, but theirs as well.
Getting an education these days is certainly expensive, but even if you have bad credit, you can get a student loan with a private company. All you have to do is research your options and then go for it!
