Some colleges will ask your credit history when you want to apply, so having a bad credit can put an obstacle in your way. If you want to find a student loan with a low interest rate, it will serve you well a clean credit history. But do not be disappointment, bad credit student loans exist even it may be harder to obtain one. How can someone have a bad credit when they are just getting into college? It must be said that many universities that grant loans do not even consider the credit history a factor for their applicants as it is considered that the people going to college are doing that right after finishing high school. But the student loans take into account if a certain person has already taken a student loan and defaulted on it in the past.
Another way to avoid bad credit standing in your way is possible if your parents have a better credit history than you. They can take a PLUS loan instead of you to help you finance your school fees. Many student loans from institutions like Stafford and Perkins are granted assuming that the parents support a part of the college costs, so the PLUS loan is a good solution for covering a part of your expenses.
Some future student need money for college because their financial situation does not allow them to follow the academic courses. In such cases, federal funding is a solution for a bad credit student loan. The government helps those that need a college loan that is more accessible. Federal funding has another feature: it has more relaxed conditions than those offered by the financial institutions. In case you do not qualify for a US Department of Education student loan, the only solution for you is a private loan. The college you intent to go to also has an importance in how easy you can get a bad credit student loan. If you want to go to law school or medicine school, from where you can follow a rich career path, private institutions will be more benevolent towards you.
You are not constrained to use just one of the possibilities mentioned above. If you play your cards right, you can use a combination of all of them or just a few to gather enough money in order to finance your studies. No matter how bad your credit history looks, you must not lose hope for a loan. There are institutions that allow you to delay the payment for your loan until you finish college, so, if you are in a field with high potential earnings, this thing will not be that hard. During that time, you can also improve your credit rating, which means that you will end up paying a lower interest.
No comments:
Post a Comment