Having bad credit isn't the end of the world, even if you are looking to get some school loans. Getting an education should not be postponed just because you have bad credit. Luckily, there are several ways in which you can get a college loan with bad credit.
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Things you need
- Co-Signer (Maybe)
- FAFSA Form
Consider getting a co-signer. A family member with good credit can help you get loans with favorable rates and terms, despite your bad credit.
Contact banks and other private lending institutions and describe your situation. In many cases, they will still lend to you, but at a much higher interest rate. The interest rate will be determined by your credit score, the amount of the loan and the repayment period.
Apply for a combination loan which consolidates existing loans while applying for a new tuition loan. It may be necessary to have a co-signer in order to get approved for the loan.
Fill out a FAFSA form and apply for a federal Perkins loan or Stafford loan. The Perkins loan is a low interest loan for both the undergraduates and graduates who qualify for financial aid. Each individual school is its own lender for the Perkins loan. Perkins loans are made up of government and school funds.
Tips and warnings
- Do not put tuition on credit cards. Their rates are much to excessive.
- Bad credit loans allow students to further education, regardless of bad credit.
- Your credit score will improve once repayment begins.
- The student must start paying on the loan when it is time, to keep from lowering their credit score.