The cost of a college education has increased five times since 1980, while family income rates have only doubled. This may help explain why around a seventh of all student loans end up in default and why it can be difficult for those with bad credit to get approved for a student loan.
In reality, however, student loans for bad credit do exist. There are several options one may have, including private student loans for bad credit.
Federal Student Loans for Bad Credit
Sometimes, those with no credit or low credit can get approved for a federals student loan. This is more often the case with undergraduates than with graduates and parents of students, however.
But you could also qualify for financial aid programs, especially if your pursued degree is in a “high need” area like healthcare or education. If you are in poverty or otherwise “disadvantaged,” this could also help you get approved for a federal loan.
On the other hand, federal loans have their limits. Even if approved, you may not be able to borrow enough to cover your total costs. If this happens, or if you fail to get approved for a federal loan, there are private student loans for bad credit to consider.
Private Student Loans for Bad Credit
In many cases, a private student loan for someone with damaged credit will require a co-signer with good credit. The co-signer can be a parent, other family member, or friend.
However, if you can’t get a co-signer, all may not be lost. There are online lenders who offer fast, easy-approval student loans to those with bad credit even without a co-signer. These loans are treated much the same as personal loans, where you must make regular installment payments and pay interest and fees. But such loans are also usually unsecured, meaning no down payment is required.
If you need fast cast to pay tuition for your college, community, trade, or graduate school, online private student loans can solve that problem quickly and with minimal hassle. You could also borrow money to pay for housing, transportation, and living expenses while going to school. With a private lender, you don’t necessarily have to use the money for tuition costs exclusively.
You will want to carefully plan out your repayment strategy, and you will be required to show an adequate source of income plus a U.S. bank account. But your credit score need not be a factor with many online private student loans.