By Susan - Tuesday 6 Jan 2:00 pm
Going to college is a costly affair, as we all know, but there are a plethora of viable solutions in the form of college loans for us to take advantage of to make the process more attainable. But what happens if you have a bad credit history? Are you as eligible for college loans? Read more…
Would be students with a bad credit score need not discount themselves from applying for college loans. There are in fact, a decent amount of options available for those with bad credit and the chances of at least one of them being approved are extremely probable.
The following college loans can be further investigated for those students with a bad credit record:
- Federal Stafford college loans
- Federal Perkins college loans
- Bad credit rating loans – secured and unsecured
- Credit based college loans utilizing a cosigner
Federal Stafford college loans do not require a credit check and so are completely viable funding solutions for those with bad credit. Some Federal Stafford college loans can be subsidized for those students that display a need for college funding, while unsubsidized college loans are available to all would be students, possibly including those with bad credit. These are the most widely distributed college loans for those with bad credit ratings and those without.
Federal Perkins college loans are not as widely disbursed as Stafford loans, but they also do not require a credit check. If you have bad credit, you would be able to apply for one of these, bearing in mind that approval on Perkins college loans is more difficult and they are usually awarded to those students who display an exceptional need for them.
Bad credit rating loans are not only set aside for college loans but for any form of monetary requirement. They are offered mainly by private lending agencies and financial services providers. They come in two forms: secured and unsecured. Secured bad credit college loans are awarded when the borrower offers some form of collateral that is equal to or higher in value than the total loan amount. In the event of the borrower failing to make payments, the collateral is repossessed and sold to make up the value of the outstanding college loan. Unsecured loans are offered without the backup of collateral, but the interest rates on these bad credit college loans are exceptionally high.
Using a co-signer with a good credit history to sign with you on your college loan application could improve your chances of obtaining one. They would not be held responsible for any debt you incur, but their credit rating would work in place of your bad credit rating to get your college loan approved.
With these options in place for those with bad credit ratings, achieving you goals is still possible and obtaining a college loan is well within your reach.
Posted in: College Loans
By Susan - Thursday 4 Dec 2:17 pm
Selecting to apply for a college loan is a responsible direction to choose and one that requires a certain degree of personal initiative. Once you have crossed that bridge and are opting to apply for your college loan, then the steps to having it approved are fairly simple. Not much effort will be required on your part, but it is important to carry out all the steps and to understand the process of college loan approval. Provided you have no drug convictions against your name, and do not presently owe any money on a college loan, then you can proceed further with your application.
These 10 steps to being approved for your college loan will help you to identify with the procedure taking place that could unite you with the future that you always dreamed of.
1. You will need to be applied to your college before you can apply for your college loan. You don’t, however need to have been admitted to the college, but will need to have admission to receive approval for your college loan.
2. Determine your dependency status by completing the Dependency Status Worksheet on the Free Application for Federal Student Aid website on www.fafsa.ed.gov.
3. Confirm or investigate the school code that is applicable to your college so that you are positive you have the correct information before applying for your college loan. Some codes change from year to year.
4. For federal loans you will need to apply for a pin on the www.pin.ed.gov website that will give you access to your college loan specifics and allow you to make binding legal obligations.
5. For federal loans you will need to fill out the Free Application for Federal Student Aid (FAFSA) eligibility form to verify whether or not you may apply for a college loan through federal means. This can be located at www.fafsa.ed.gov
6. You will need to have your social security number, high school diploma or equivalent and your parent’s tax information in your possession to submit for application. For private college loans you will need to submit all the requirements for a credit check. These may vary from one institution to the next.
7. When submitting your FAFSA form for application to your college loan ensure that you print out your confirmation report as it includes a confirmation number and the date and time that your application was received.
8. Submit your application for a college loan, no earlier than the 1st of January and no later than the 30th of June of the year you are applying for entrance, although some colleges may have different dates for applications so you should check this with the relevant college.
9. Try and apply early enough so that there are still funds available to supply you with a college loan.
10. Follow up by logging into the FAFSA website using your pin for federal loans to check the status of your college loan application. For private loans, each institution will have their own methods of communicating for you to be able to gauge progress on your college loan application.
Posted in: College Degrees, College Loans
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