If you’re having trouble qualifying for a Student Loan due to your “bad credit status”, there are still certain actions you can take to get approved. First try to get one of the federal student loans available. Be sure to do this properly, meaning, apply for all loans offered by the government, before applying for a Private Student Loan.
A PLUS loan can be suitable for you if your parents have better credit ratings than you and are willing to help you, by taking the responsibility of borrowing the needed money for you.
No Success with Federal Student Loans, Are Private Student Loans OK?
Defaulted federal student loans are one of the main reasons for not getting approved for a federal student loan. Bad Credit is not an issue when it comes to federal loans. The lender assumes that the student will go from high school to college and therefore, could not build a credit history. If you’ve tried and for any reason your student loan application was declined, a private loan for a student with bad credit can be the next best solution for you.
Private student loans for students with bad credit ratings will naturally carry higher interest rates than federal student loans or private loans for excellent credit ratings. Using student loan payment calculatorswill help you compare offers for different online lenders and by choosing a proper student loan repayment plan you might even be surprised of getting an attractive student loan offer.
School is Over, Why Stay Stuck with Bad Credit?
Once you’ve graduated, grace period (lasting up to 9 months depending on the loans you have obtained) will begin. During this time you can start looking for a job and choose your student loan repayment plan. If you have borrowed a minimum of $7,500 in more than one student loan, joining a student loan consolidation program will be beneficial. Not only will you benefit from a fixed, lower monthly interest rate and payment but, consolidating your student loan debt will also improve your bad credit ratings.