You need to look for lenders who offer the best student loans for bad credit. You can get a student loan even if you have bad credit or no credit. Some lenders provide student loans without taking your credit history into account. For example, federal student loans are provided on the basis of your need rather than on the basis of your credit score.
Consult an experienced financial counselor to find out about your options for getting student loans for bad credit. Please fill out our brief online form to get free, no-obligations advice on the best student loans for bad credit.
Your credit record matters
If you have a good credit history, you can get a student loan on your own. There’s no need to ask your parents for help. It may be harder to qualify for a student loan if you have a bad credit record or no credit record. Parents may not always have good credit scores, which may make them ineligible to be cosigners.
Federal loans offer better rates and terms
In general, you need to try to get as much financial aid as you can in the form of grants, work study, and scholarships, before you look for educational loans. Fill out the Free Application for Federal Student Aid (FAFSA), and try to get as much money as you can in the form of federal loans before you apply for private student loans. You may find that federal loans are much cheaper and have better repayment terms than loans offered by private lenders.
Compare offers from different lenders
Private lenders may advertise the rates and terms that they offer to applicants with the best credit scores. If you have a bad credit history, you may be asked to pay a lot more than the advertised rate. You may be able to get better rates and terms if you have a cosigner with a good credit score. Remember, financial counselors may get commissions for referring students, so they may not always have your best interests in mind while providing advice. Read online reviews to check the reputation of the lenders before you decide.
Do the math
Consider all the charges that will be applicable while comparing offers from different lenders. A lower interest rate with very high fees may work out to be more expensive than a slightly higher interest rate with very low or no fees. Use an online loan calculator to assess your options.
Make sure that you will be able to repay the student loan
Look for a reputable, accredited school, which will provide a degree that is valued by employers. Check to see if you will be able to get a job as soon as you complete your program. Find out about how much you can earn expect to earn after you graduate. Will the expected salary cover your monthly loan repayments comfortably? Please fill out our brief online form to get free, no-obligation advice on the best student loans for bad credit.