Apply Private Student Loan With Bad Credit
July 22nd, 2009
A very large percentage of students find themselves in need of a student loan in order to attend college/university. Now, if you have spectacular credit history, your chances of getting a student loan skyrocket. On the other hand, with bad credit, your chances do go down, but a private student loan is still not out of the question.
Surely, many students out there do have bad credit – it’s a part of life. For this exact reason, there is a student loan known as the Stafford loan. The Stafford Loan does not even look at credit as a factor. So if you have bad credit history, or amazing credit history, it will not make the slightest difference when applying for a Stafford Loan.
Then, there is the Perkins loan. The Perkins loan, similar to the Stafford loan, does not look at credit rating. It basically pretends that you do not even have credit rating, as you are just going from high school to university. There is only one way to be denied a Perkins loan – if you have been previously denied a federal student loan. Otherwise, anybody is eligible for a Perkins loan.
A Perkins loan and a Stafford loan are not the only options as far as private student loans go for students with bad credit history. Federal funding is often a good option, as its primary goal is to make university/college more easily accessible to those struggling financially. Since the loans are government funded (education board) they are much easier to obtain, compared to a loan from a bank or a private institution.
If you are still out of luck, you should still not give up. Do your parents have good credit history? If so, you’re in luck! There is a private student loan known as the Plus Loan. A Plus loan is awarded based on your parent’s credit history, not yours.
Last but not least, there are private lenders. These are often harder to receive a private student loan from, simply because they are stricter on their requirements.
