You can still get a student loan when you have bad credit, or no credit if you know how to approach this process from a correct perspective, and the real key is to first apply for federal student loans via the FAFSA before looking for any sort of private aid.
- Most federal student loans are not based upon credit, and are instead based upon financial need, and therefore do not require you to submit to a credit check.
Getting a federal student loan with bad credit is something that almost anyone can do, and as long as you complete your FAFSA by the appropriate deadlines you should be put in the running for these types of student loans. The earliest you can submit a FAFSA for the following school year is set at January first, and the latest you can submit one is June first. Once you have completed your FAFSA you can expect to receive an award package from your college at some point during the Spring or Summer.
Within this award package should be a detailing of all the federal aid that you were able to qualify for, including any specific federal student loans. From that point you simply need to accept your federal loans via a response letter that must be sent back to your college, and that’s it! Never will you be asked to submit to a credit check, and your credit history will not be taken into consideration during this process at any point.
Private Student Loan Reality
If you still need additional money for college after you have received your financial aid award package from your college it may then be time to examine your options when it comes to private student loan funding.
- Private student loans are based on credit, and will therefore require you to have the appropriate credentials in place in terms of a credit score, and a credit history before a lender will issue you an approval.
If you have bad credit, or no credit, and still require a private student loan then you essentially have three options. You can first take your chances and apply with your credit as it stands now, although I advise you not to do this due to the fact that almost no lender will issue you an approval if you truly have bad credit. Your second option involves taking the necessary steps in order to improve your credit situation, and while it is beyond the scope of this article to go into detail about the specific ways you can do this, going forward with this option can result in success although it can take some time.
Your third option is to find a creditworthy cosigner that is willing to cosign for your loan, and this is perhaps the best, and most practical option you have when you need to get a private student loan before a particular deadline. Most college students that take out private student loans do so with the help of a cosigner, and by having a creditworthy cosigner a private lender can virtually overlook your credit profile, and provide you with an approval with relative ease.
Final Statement
This is the reality of getting a student loan with bad credit, and unless you have good credit, or a proper cosigner, it is not recommended that you go and seek out a private student loan, as this will be a waste of your time.
No private lender will approve a student-borrower who has bad credit and no cosigner, and while some lenders may advertise the availability of so-called “bad credit student loans”, these lenders may in-fact not be student loan lenders at all, and may instead be payday loan lenders simply trying to get you in the door.
There may have been lenders prior to the economic collapse and the tightening of the credit markets that were willing to provide students with poor credit a private education loan, but that time has come and gone. In today’s market you need to have good credit, or a credit-worthy cosigner to get approved for a private student loan, and the only way to get student loans without a cosigner and bad credit is to apply for a federal student loan, bottom-line.
