If you want to go to college despite a poor credit score, don’t despair for too long. The fact that you want to continue your education proves that you have a fighting spirit and that you want to increase your chances at making a livable wage and one day not need credit to get by. Some lenders are willing to help you in that quest, including the very large federal government.
If you need to apply for a student loan with bad credit, keep the following tips in mind as you devise your plan to get into State U. or the local community college.
Loan Application Tips
The federal government is a powerful ally for those who need to apply for a student loan with bad credit. These federal loans do not call for a credit check on applicants, so you don’t need to worry about your low score; it will not be a factor. If you qualify for federal aid, you might receive Pell Grants in addition to Perkins and Stafford loans, which offer excellent interest rates, regardless of your credit rating.
Fill out the proper forms online at FAFSA.com and see what good things can happen. You will need to organize your complete financial profile before you fill out the FAFSA and be sure to meet the deadlines, which come early in the calendar year if you want to arrange financing for the fall semester.
If federal loans do not cover all of your costs, then you will need to turn to a private lender and apply for a student loan. That can mean sky-high interest rates, but there is a way out of this dilemma. You simply need to find a co-signer with a good credit score to make the deal possible with terms that won’t bankrupt you after graduation. “Dad, are you free next Wednesday at 4 p.m. to go to the credit union?”
Reduce Bad Credit as a Student
If you don’t have a credit card already, obtain one and begin to build your credit score to reduce the barriers to getting future college loans. In reality, you don’t need a lot of money or material items to get by in college, especially if you live at home. Use credit wisely and boost your rating so that you don’t have to ask Dad next time and can avoid the need to apply for a student loan with bad credit for next year’s costs and beyond.