A Bad Credit Private Student Loan
Can Help You
Get Your Dream Education

A bad credit private student loan may be your answer when you want to attend a school, but you have bad credit, no wealthy relatives and access to little money. What do you do? How do you get a loan through a private company? It might seem like there's just no way you'll be able to get a private loan to attend school, but really, there is hope on the horizon. Just because you have bad credit doesn't mean there's no way you can get a private student loan.

You can start by looking into government subsidized loans such as the Stafford Loan. These are loans that you can obtain through your school and you don't have to repay them until six months after you graduate. The interest rate on these loans is usually quite low making it affordable for you to repay after graduation.

Another option for a private student loan - PLUS loan

Another option for you to look at when trying to find a bad credit private student loan when you have not so perfect credit is to have your parents get a PLUS loan. This will be in their name and will also be at a lower interest rate. Your credit won't be an issue since the loan approval will be made solely on their credit rating - not yours. Of course, it will have to be paid back - probably by you, but your parents will be responsible for the payments, so make sure you pay the loan back on time.

There are also many private student loan companies you can explore when you have bad credit. Start by contacting your local bank where you have your checking or savings account. Explain to them your situation and why you have not so perfect credit. Since you have a relationship with them already, the likelihood of them approving a loan for you is better than if you work with another financial institution that doesn't know you at all.

Co-Signer Option...

You can get a bad credit student loan by having a co-signer with good credit that will offset your not so perfect credit. Most often, this is usually a parent, guardian, or grandparent. It works just like any other loan with a co-signer. They are saying that you will make the payments or they will have to if you fail to follow through on your loan agreement. Again, it's important to make timely payments if you have a co-signer on your student loan as missed payments can affect not only your credit, but your co-signers credit as well.

Getting an education these days is certainly expensive, but even if you have less than perfect credit, you can still get a student loan. All you have to do is research your options and then go for it! We wish you the best of luck in achieving your educational goals.



Sign up

Copyright © 2010 GCI, LLC All rights reserved
Return to top