Student Loans For Bad Credit No Problem
If you have bad credit and you need money to go to college, there are some steps you can take to get the funding you need.
The first thing you need to do is fill out the FAFSA application. FAFSA stands for the Free Application for Federal Student Aid. When you first look at the paperwork involved, you might be apprehensive, but the time it takes to do this one thing will pay you in the future.
Filling out the FAFSA indicates that you have little or no income and are in need of a low interest loan for school. The loan you will receive from the FAFSA is the Federal Stafford Loan. This is given without a credit check making your bad credit a non-issue. You must be a U.S. citizen and be able to show that you don’t have the ability to pay for college yourself. You must not have any other defaulted student loans when you apply.
When you fill out the FAFSA, it is a good idea to apply for a Perkins Loan as well. Do this as soon as you can because these loans are not endless and you don’t want to miss out on getting one. A Perkins Loan also does not require a credit check and is based on need. They come from school and government funds.
The money you receive from filling out the FAFSA and obtaining a Perkins Loan may not cover everything you need and with bad credit, getting a private student loan will be difficult if not impossible unless you have a cosigner.
A cosigner is someone who allows you to use their good credit to get a loan. If you are able to get a good cosigner, then you will be able to get your money for school. Choosing someone whose credit score is nearly as bad as or even worse than yours won’t help you. The loan companies don’t add credit scores together; rather they will literally be using the other person’s credit score as a basis for giving you a loan.
A cosigner takes a risk when they agree to cosign for you. If you do not pay on time or you default on the loan, they will be held accountable for payment. This will also reflect in their credit report. When someone trusts you enough to cosign for you, it is your responsibility to not betray their trust. Make your payments on time every month remembering that someone besides the loan company is counting on you doing so.
