Though student loans present risks for lenders, they are still a smart investment. If a loan application is denied, or if an aspiring student wonders how to get Education Loans For Bad Credit, the tips below can help one realize their dreams even with a bad credit score.
Consider Federal Programs
Many students are eligible for loans through the Federal Direct program, which is financed by the Department of Education. Students can get up to $12,500 per year in subsidized and unsubsidized loans for an undergrad degree, and up to $20,500 yearly for graduate studies. This program requires no credit check, and because it’s federally backed, it is available to any student enrolled in an accredited school.
Go to a Local Bank or Credit Union
Many lenders have stringent underwriting criteria that determine who qualifies, the rates they receive and the amount that can be borrowed. Pearl Hawaii Federal Credit Union also has guidelines, but they’re more flexible when meeting the community’s needs. These lenders may be beneficial to those with poor or no credit, who have been denied a loan from a larger lender.
Look at Lenders That Check Credit in Alternative Ways
Another option for a student loan borrower is to find lenders who use alternative credit checking methods. Many new lenders, especially those offering services online, have different ways of determining creditworthiness. These lenders still evaluate a borrower’s credit history, but they look at other factors such as future earnings potential and academic performance.
Get a Cosigner
This is often difficult to do, but finding a cosigner with good credit can help a student get a loan with a less-than-stellar credit history. In most instances, the cosigner can be anyone, from a friend to a grandparent. The obligation is not to be taken lightly, as the cosigner is equally responsible for debt, and borrowers should ensure that they can repay the loan.
For those looking to finance a college education, having poor or no credit can make it hard to get a much-needed student loan. Every year, thousands face this situation, and many find Education Loans For Bad Credit. By considering the tips above, students can get the loans they need to get into or stay in school. You can also connect with them on Facebook for more updates!