Many people think that their bad credit might prevent them from getting a student loan, but this simply isn’t true. Though some private lenders will not loan to those with bad credit, the majority of student loans are backed by the government and do not depend on one’s credit. You shouldn’t put off your education just because you’ve made some financial mistakes in the past.
Just like any other loan, some lenders might require you to have a co signer to back the loan. If you have someone willing to back you a loan of any type is nearly always possible.
If you don’t have someone to co sign for you, the next option is to talk face to face with your lender. Explain your situation and how you intend to repay the loan. Your lower credit score will mean that they charge you more interest, but they will likely still give you the loan.
If you have an existing loan from an institution that you have paid regularly, you can ask for that line of credit to be extended. School is a good reason and most lenders will be happy to lend you more money as long as you have demonstrated responsibility in paying the original loan.
One thing you should never do is use a credit card to pay for school. It just isn’t necessary. Any student loan will offer interest rates lower than even the best credit card offer. Even if you have a 0% introductory rate, you know that you will not pay off the loan before the rate skyrockets. Avoid further damaging your credit by not using credit cards.
The best bet of all is to try and qualify for a federal student loan. These loans not only do not depend on your credit history, many of them are also subsidized meaning that you will accrue no interest until you finish school. This can save you thousands depending on how long you are in school and how much you borrow. The process is simple and can be completed in only a few minutes. Within a week or so you’ll have a response. Your school financial aid office will help you step by step.
Tuition costs continue to rise but so does the need for a quality education. Don’t let some bad credit stop you from improving yourself and achieving your dreams.