Maybe you’re thinking of going to college or grad school for the first time, or of returning to college again after a “false start.” But, you are worried about whether you can get approved for the student loans and financial aid you will need due to your below average credit score.
What should you do? Well, the answer involves several different aspects that you need to be aware of. Read on to learn more!
How to Get a Student Loan With Bad Credit
The fact is, federal student loans are not awarded based on your credit score, and no credit check is even run with such loans. You may have to pay a bit higher interest rates on a federal student loan, but you can go to FAFSA-dot-com and apply for and get approved for a student loan regardless of bad credit.
It’s easy to learn how to get a student loan with bad credit as to federal loans. And the key things to focus on are trying to get a subsidized loan, if possible, where the government pays the interest on it while you’re still in school AND to simply get a loan that’s sizable enough to cover your tuition and/or on campus room and board.
What About Private Student Loans for Those With Bad Credit?
If you to a bank or “traditional lender,” it can be very difficult to get approved for a private student loan. If you have bad credit, it gets even more difficult. But you may sometimes be able to find a cosigner in order to get the loan.
But if you apply for a private personal installment loan to use for your personal expenses while at school, you can almost certainly get approved.
These types of loans require no collateral and are available for those with damaged credit or no significant credit history. There are no limits on how you can spend the money either, and you can get the cash deposited directly into your account within one or two business days.
What About Student Loan Consolidation?
If you already have a number of outstanding student loans, you can simplify repayment (and often lower your monthly installments and interest rate) through student loan consolidation.
There are many lenders who will give you reasonable, affordable offers on student debt consolidation. Taking care of this before going back to school and taking out another student loan; OR, using it as a repayment strategy following graduation are two possible ways student loan consolidation may be able to help you.
At Bonsai Finance, we can show you how to get a student loan with bad credit and help you locate your best possible loan offers that meet your needs. We can give you expert advice on what is the wisest way to navigate the world of student loans (both federal and private) and student debt consolidation!