Are you worried that your student loan application will not be approved due to your bad credit? There is 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 have made some mistakes in the past, but this should not prevent you from achieving your dreams.
What is a student loan?
A student loan is meant to help students finance their education expenses, such as college tuition, books, and other operating costs. The difference between student financial aid and other loans is that it has a lower interest rate and the payment schedule is deferred while the student is still studying. How do I qualify for a student loan?
To qualify for a student loan or financial aid, the student education information manager at your college will verify your eligibility based on several factors. These factors include, but are not limited to, the following:
-show monetary need
-have a high school diploma or General Education Development (GED) certificate
-be working toward a degree or certificate in a qualifying curriculum
-be a US citizen or eligible non-citizen -have a valid social security number
-advocate for acceptable educational improvement -certify that you will use the student loan for educational purposes only
With bad credit, can I still get a student loan?
As mentioned above, having bad credit is not the end of the road for you. This should not be an obstacle to obtaining a degree or a good education. You may be in that condition because of identity theft, too many loans in the past, or you were in a financial crisis that prevented you from making payments on time. Yes, it’s true that having a good credit standing can increase your chances of getting good interest rates on student financial aid loans. Do not lose hope. Fortunately, there are many ways you can get student financial aid even with bad credit.
Even with bad credit, here are the steps you can take to get approved for a loan:
1. Get a co-signer. Regardless of your bad credit, ask a family member with good credit to help you get loans.
2. Swallow your pride and call your local bank and other private financial and lending institutions. Tell them your condition. Most of them will lend you, albeit at a much higher rate.
3. Request a loan combination agreement that consolidates existing loans while you apply for a new tuition loan. At this stage, your co-signer can help you get approved for the loan.
4. Complete the FAFSA form to find out if you qualify for the student loan. Complete the Federal Perkins Loan or Stafford Loan forms.
to. Federal Perkins Loan – A need-based student loan offered by the US Department of Education to help American college students finance their post-secondary education.
b. Stafford Loan – Provided to eligible students enrolled in accredited US institutions to provide financial assistance for their education.
Your credit score will improve once your payment begins. Word of advice, study hard, you’ll get a good job, and in the long run, you’ll be able to build a good credit history. Good luck!
