Are you worried that your student loan application will not be approved because of your Bad Credit? No need to worry anymore. People think that having Bad Credit is the end of the road for them. In fact, it is only the beginning. Yes, you made some mistakes in the past, but this should not stop you from achieving your dreams.
What is a Student Loan?
A student loan is intended to help out students, fund their education expenditures like university tuition, books and other operating cost. The difference between a student financial aid and other loans is that it has a lower interest rate and the repayment program is deferred while the student is still studying. How do I qualify for a student loan?
To qualify for a student financial aid or loan, student education information administrator at your college will verify your eligibility based on several factors. These factors include but are not limited to the following:
-display monetary necessitate
-have a high school diploma or a General Education Development (GED) certificate
-be working toward a degree or certificate in a qualified curriculum
-be a U.S. citizen or eligible noncitizen -have a valid Social Security Number
-uphold acceptable educational improvement -attest that you will use student loan only for educational purposes
With Bad Credit, can I still get a student loan?
As mentioned earlier, having Bad Credit is not the end of the road for you. This should not hinder you for obtaining a degree or a good education. Possibly you are in that condition because of identity theft, too many loans in the past or you were in a financial crisis that made it impractical for you to make payments on schedule. Yes, it is true that having a good credit standing can increase your chances of getting good interest rates in student financial aid loans. Do not lose hope. Fortunately, there are many ways in which you can get a student financial aid even with Bad Credit.
Even with Bad Credit, here are the steps you can make in getting a loan approved:
1.Get a co- signer. Regardless of your Bad Credit, ask a family member with good credit history to help you get loans.
2.Swallow your pride and call your local bank and other financial and private lending institutions. Tell them your condition. Most of them will lend you, although at a much higher rate.
3.Apply for an arrangement to combine your loan that consolidates existing loans while applying for a new tuition loan. At this stage, your co-signer can help to get you approved for the loan.
4.Fill out the FAFSA form to know if you’re qualified for the student loan. Fill out either a federal Perkins loan or Stafford loan forms.
a.Federal Perkins loan – is a need-based student loan offered by the U.S. Department of Education to help American college students subsidize their post-secondary education.
b.Stafford loan – provided to eligible students enrolled in accredited American institutions to provide financial assistance to their education.
Your credit score will improve once your repayment begins. A piece of advice, study hard, so you’ll land a good job and in the long run you’ll be able to build good credit record. Good luck!