How to Get a Student Loan With Bad Credit

The U.S. government guarantees student loans. Anyone, even someone with bad credit, is able to get a student loan. Now, there is no need to worry if you are headed off to college as a freshman with no credit, or going back to school as a student with bad credit. It is STILL possible to get student loans with bad credit and no cosigner!

More than $170 billion in financial aid is available to help pay for college, according to Student Financial Aid Services, Inc. More than 90% of that money is available to those who file their federal financial aid applications. The Free Application for Federal Student Aid is also known as FAFSA. This application helps colleges determine if a student is eligible for a federal, state, or college-sponsored financial aid like grants, educational loans, work-study programs, etc. To see if you are eligible, or to apply, visit the FAFSA website.

There are also alternative student loans. One example of this is having a co-signer. Since alternative student loans are credit-based, having a co-signer with good credit will hopefully increase your chances of being approved for this type of loan. Additionally, if your federal aid or loan does not cover all of your school expenses, having a co-signer may be a good alternative. But, you should only use alternative loans after you have considered ALL other options. Make sure you consult your local bank professional for guidance in determining if an alternative student loan is right for you.

Once you have been approved for a loan and are all set to go to school, you have to remember that it is absolutely necessary to pay your bills on time. If you don’t have credit, this will help you build it. If you have bad credit, this will help you raise your credit score. ALWAYS consult a bank professional if you do not understand something. He or she will help you decide which type of student loan is right for you, and answer any questions you may have.

You might also be concerned that you can’t get approval for a student loan if you’re currently without a job regardless of your credit score. Although it’s true that most traditional lenders are reluctant to give out personal loans to unemployed people, student loans don’t work that way. You can almost always get approval for a student loan whether you’re employed or not.

Keep in mind that it’s occasionally difficult to get student loans for non accredited schools even when you have good credit. Schools that cannot be accredited are not necessarily trusted by the government or lenders who give out student loans. You’ll probably have the best chance of getting loan approval if you apply to a school that has been accredited.