Before looking into student loans, make certain to exhaust all of your free money options for college. Free money options, most commonly college scholarships, provide students with money for college, which unlike student loans, does not have to be repaid. Many students fail to apply for scholarships, simply because they feel that they will not qualify, or that the scholarship award is not sufficient enough, this can be a costly mistake. The truth is that there are a wide variety of scholarships available (not just academically based) for all types of students, and every free dollar towards your college education is worth applying for.
No, realistically if you have bad credit, you will need a cosigner to possibly secure a private student loan. All private student loans for college are heavily based on the borrowers credit, so if the borrower has poor or little credit history, it is unlikely that they will have the ability to secure a private student loan without the help of a creditworthy cosigner. No legitimate bank or lender, is going to offer student loans with no cosigner to a borrower with bad credit, it would be too risky to their business’s bottom-line. The best option for the borrower (after completion of FAFSA) would be to speak with the financial aid office at his or her school. Your school may offer scholarships or other financial aid options/programs designed specifically for students in your financial situation.
For those in need of a bad credit student loans with no cosigner, the first place to start is with federal student loans. All college students in need of financial aid for college are encouraged to visit www.fafsa.gov and complete a FAFSA application. Not only will federal student loans provide the borrower with some of the lowest interest rates and best repayment options available, but federal student loans for college are based on financial need, and not credit history. This makes federal student loans a good option for those in need of student loans for bad credit and/or with no cosigner. Applying for FAFSA is free, and most financial aid experts will recommend that students exhaust all of their federal financial aid options before moving onto private student loans.
If a student is unable to cover the full costs of college with federal student loans, scholarships, grants, and/or employment income, a private student loan is often the next choice. Private student loans, unlike federal student loans are based upon the borrowers credit. If the borrower does not have sufficient credit, often times the lending institution will still make the loan if a cosigner with sufficient credit agrees to pay back the loan, in the case that the primary borrower fails to do so. If you have bad credit, getting a private student loan without a cosigner’s help will be extremely difficult, since most lending institutions will view this situation as a risk not worth taking.
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