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Bad-Credit Student Loans Require Four Strategies
Filling out the Free Application for Federal Student Aid (FAFSA) application is your first strategy in landing a so-called bad-credit student loan. Your financial education begins as you figure out your school funding options.Bad Credit Is a Bane Upon Getting Any Loan
Young adult or returning student, this is America and anything is possible. Bad credit should not prevent you from getting an education. In fact, because of the rapidly evolving world of finance, there is a growing trend in the markets to fund bad-credit student loans. The trick is understanding how to go about landing one (or two) to fit your needs so you can finish your studies.
A Primer on Understanding Lenders
Bad-credit student loans are not six of one and half-dozen of the other. They can differ considerably. Know as much as you can about any prospective lender. You may even want to check them out by asking your student financial office or the Better Business Bureau, to see what other students have said about them. Whenever you see fine print - read it! This is where 90% of problems arise. Lookout for late fees and such. Ask any and all questions. You may even want to have a third party look over the contract before you sign it.
Strategy One - Fill Out the FAFSA
The Free Application for Federal Student Aid (FAFSA) is the key to many well-known so-called bad-credit student loans. You can fill it out online or you will find paper applications at the student aid office. This application will determine your eligibility based on your financial circumstances. When your status has been assessed and you are approved, you may then start to investigate lenders as discussed in the primer above.
Strategy Two - Student Aid Office
It would be a shame to ignore the wealth of information that can be found at the student aid office of your college or university. They will guide you in seeking a Stafford Loan, a widely used student loan with bad credit. If you qualify as very financially needy, you may be able to get a Perkins Loan. Plus, they can talk to you about all sorts of alternatives to get you the money you need to go to school.
Strategy Three - Interested Adults
You may not know what a cosigner is. A cosigner is a trusted individual who is interested in your well-being. A cosigner must have a decent and steady income and a better credit rating than your own. This could be a parent, a relative, or an older friend. Of course, they should be aware that if you default on your co-signed, bad-credit student loan, they would be responsible.
Strategy Four - Build Slowly
If you are having difficulty landing a bad-credit student loan try making small loans and paying them back in a timely manner. This could boost your credit score enough to qualify for larger loans down the line. Or reduce the amount you are requesting and supplement it with a part-time job or help from your parent. You may consider taking a bad-credit student loan that is not deferred until the end of your studies. Sometimes it is easier to get a loan that starts paying immediately, which could be okay if you can manage the payments as you study.
Bad Credit Will Not Prevent Your Education
Your bad credit history, or non-existent credit history should not prevent you from obtaining a higher education. You will find many sources of bad-credit student loans and one will eventually accommodate you. The going while in school will be rough no matter what kind of bad-credit student loan you get. But you will eventually have your degree.
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