Sometimes loan payments can spiral out of control and before you know it, you are in the red and in bad books, but that should not discourage you from pursuing your education as there are options available like the bad credit student loans. The first step in getting that loan is to get a co-signer. This is a person who has a good credit record and will help you get the loan at favourable rates. You could get a family member or a close friend to do this for you. Another option to consider when getting bad credit student loan is consolidating all your loans by applying for a combination loan. This option will save you a lot of money as the interest rates due for payment will come down. Note however, that you may still need a co-signer in order to get a consolidated bad credit student loan this but it will be worth the trouble.
Banks and private lending institutions are another good source to consider. Check out various places to get the best deal and take advantage of special offers when getting your student loan. These institutions generally give loans at a higher interest rate and should be considered when all else fails. Their interest rates are determined by your credit score, amount borrowed and the loan repayment period. You have to be convincing though in order to get loan so make the bank understand your situation to enable them give you a loan that is convenient to pay. Another source of bad credit student loan is the Federal Application for Federal Student Aid which is government funded and has strict rules on eligibility for it.
Students who want bad credit loans can also get it from the federal government coffers and applying for it is very easy.
- The first step is going online and opening the Federal Application for Federal Student Aid website. Navigate to the eligibility page to find out if you qualify for the loan. If you have not defaulted on a federal loan or defaulted on a federal grant, then you qualify.
- Fill out an application form for federal student aid. This is done by clicking on “fill out my FAFSA” on the left hand side menu of the page. Click on the start button.
- You will receive on screen instructions that will guide you as you fill out your bad credit student loan application. You will be required to provide details on your previous year’s tax returns or those of your parents if you are not an independent student.
- Complete your application. This will be sent to your school of choice.
- Follow up with the school before the start of the semester to find out how much money you were granted for your bad credit student loan.
