FACT - Bad Credit Could Get Your Student Loan Denied
Ask any high school senior what their credit score is and they will reply with a Huh? After all this response should be too surprising. Most high school seniors are to busy for trivial things such as credit scores and student loans. Then the flags go up when they find out that do to their poor credit scores they cannot get a standard student loan. This is the point where most students begin to get discouraged.
Instead of giving up do to your inadequate credit it is advised that you approach your close relatives and friends in hopes of finding a cosigner. Normally when you bring up the word cosigner people flee like roaches with the lights on. However most are more receptive when they find out that you are asking for a cosigner for your college education and not a car or something along those lines. Whoever it is that you decide to approach make sure that you have your career plans in hand.
If you do land a qualified cosigner this works out to your advantage. The financial institution will take the cosigners credit score into consideration. Thus landing the student a better loan with a lower interest rate. If a student has a poor credit score chances are this may be the best route for you.
Lets say that all of your efforts to find a cosigner are futile. You gave it your best shot and know one is willing to give you a break. Wait Do not hit the panic button just yet; you still have some other options for obtaining a student loan and or a scholarship. The next thing that I would do is contact all local banks and lending institutions in my area. Sometimes these institutions have special programs such as scholarships or special loans designed for new college students. Keep in mind that if you do find a loan chances are the interest rates are going be through the roof.
The good news is that a higher interest rate option isnt as bad as it sounds. In the majority of cases most college degrees take a minimum of four years. This means that you will have time to start rebuilding your credit. When the big day arrives and it is time for you to pay the piper chances are you will be able to refinance your student loan at a lower interest rate.
A third option that you should know about is called a combination loan. If you have bad credit due to poor money management i.e. a lot of debt this option may be for you. A combination loan will allow you to consolidate your existing debt and then apply for one big loan to pay all of it off. By consolidation your loans chances are you will end up paying a lower monthly interest rate.
Hold on a second! Stop the presses! I almost forgot about two loans that are primarily geared towards those that may be having some financial hardships. Those loans are known as the Stafford Loan and The Perkins Loan.
It is important to keep in mind that even in a worse case scenario, obtaining a student loan or a scholarship is nothing more than a numbers game. If you were to go online and apply for every student loan and scholarship program that you can find you will be approved for a few of them. You will be blown away at the number of available loans and scholarships that you can apply for. The fact of the matter is you just may end up getting a free ride regardless of your financial situation. The key to your success is to avoid being discouraged and to keep plowing forward.
Instead of giving up do to your inadequate credit it is advised that you approach your close relatives and friends in hopes of finding a cosigner. Normally when you bring up the word cosigner people flee like roaches with the lights on. However most are more receptive when they find out that you are asking for a cosigner for your college education and not a car or something along those lines. Whoever it is that you decide to approach make sure that you have your career plans in hand.
If you do land a qualified cosigner this works out to your advantage. The financial institution will take the cosigners credit score into consideration. Thus landing the student a better loan with a lower interest rate. If a student has a poor credit score chances are this may be the best route for you.
Lets say that all of your efforts to find a cosigner are futile. You gave it your best shot and know one is willing to give you a break. Wait Do not hit the panic button just yet; you still have some other options for obtaining a student loan and or a scholarship. The next thing that I would do is contact all local banks and lending institutions in my area. Sometimes these institutions have special programs such as scholarships or special loans designed for new college students. Keep in mind that if you do find a loan chances are the interest rates are going be through the roof.
The good news is that a higher interest rate option isnt as bad as it sounds. In the majority of cases most college degrees take a minimum of four years. This means that you will have time to start rebuilding your credit. When the big day arrives and it is time for you to pay the piper chances are you will be able to refinance your student loan at a lower interest rate.
A third option that you should know about is called a combination loan. If you have bad credit due to poor money management i.e. a lot of debt this option may be for you. A combination loan will allow you to consolidate your existing debt and then apply for one big loan to pay all of it off. By consolidation your loans chances are you will end up paying a lower monthly interest rate.
Hold on a second! Stop the presses! I almost forgot about two loans that are primarily geared towards those that may be having some financial hardships. Those loans are known as the Stafford Loan and The Perkins Loan.
It is important to keep in mind that even in a worse case scenario, obtaining a student loan or a scholarship is nothing more than a numbers game. If you were to go online and apply for every student loan and scholarship program that you can find you will be approved for a few of them. You will be blown away at the number of available loans and scholarships that you can apply for. The fact of the matter is you just may end up getting a free ride regardless of your financial situation. The key to your success is to avoid being discouraged and to keep plowing forward.
About the Author:
Before you do anything regarding your high interest student loan make sure you check out Tim Beachum's website Bad Credit Student Loans website.
posted by Credit Counseling at
8:37 PM
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