Student Loans Are Getting Denied Due To Bad Credit
Not many young people care too much about their credit let alone worrying about the intricacies of student loans. After all they have enough to worry about with watching television and gossiping about who is dating whom. Then they find out that because of their substandard credit that they do not qualify for the standard student loans. This is the first devastating blow of reality. Its understandable why most young people would be a little discouraged.
If you should find yourself in this predicament the first thing that you should do is start hunting down a co-signer. In most cases you are met with rejection when you approach someone to be a co-signer. However when asking someone to co-sign for a student loan they are usually a little more acceptable. Make sure that you approach your prospect with your career plans in hand.
If you do land a qualified cosigner this works out to your advantage. The financial institution will take the cosigners credit score into consideration. Thus landing the student a better loan with a lower interest rate. If a student has a poor credit score chances are this may be the best route for you.
Ok its a swing and a miss You give it your best shot and you still cannot find a qualified co-signer. You next best option for a student loan is to contact banks as well as other lending institutions. Your goal by doing so is to find out if there are any alternative methods of financing your education. Many times these lending institutions will have a high interest rate solution. I bet you seen that one coming a mile away!
Once you finally find a loan that works for your situation dont start to think about it to deeply. Thinking about those high interest rates is not where your focus needs to be at this point in your life. Look at it this way - most college courses take 4-5 years for a student to complete. This is more than enough time for you to reestablish your credit at which time you can refinance your high interest rate loan for one with a much lower rate.
A third option that you should know about is called a combination loan. If you have bad credit due to poor money management i.e. a lot of debt this option may be for you. A combination loan will allow you to consolidate your existing debt and then apply for one big loan to pay all of it off. By consolidation your loans chances are you will end up paying a lower monthly interest rate.
I almost forgot about the Stafford Loan and the Perkins Loan. These loans are geared towards those that are having financial hardships
It is important to keep in mind that even in a worse case scenario, obtaining a student loan or a scholarship is nothing more than a numbers game. If you were to go online and apply for every student loan and scholarship program that you can find you will be approved for a few of them. You will be blown away at the number of available loans and scholarships that you can apply for. The fact of the matter is you just may end up getting a free ride regardless of your financial situation. The key to your success is to avoid being discouraged and to keep plowing forward.
If you should find yourself in this predicament the first thing that you should do is start hunting down a co-signer. In most cases you are met with rejection when you approach someone to be a co-signer. However when asking someone to co-sign for a student loan they are usually a little more acceptable. Make sure that you approach your prospect with your career plans in hand.
If you do land a qualified cosigner this works out to your advantage. The financial institution will take the cosigners credit score into consideration. Thus landing the student a better loan with a lower interest rate. If a student has a poor credit score chances are this may be the best route for you.
Ok its a swing and a miss You give it your best shot and you still cannot find a qualified co-signer. You next best option for a student loan is to contact banks as well as other lending institutions. Your goal by doing so is to find out if there are any alternative methods of financing your education. Many times these lending institutions will have a high interest rate solution. I bet you seen that one coming a mile away!
Once you finally find a loan that works for your situation dont start to think about it to deeply. Thinking about those high interest rates is not where your focus needs to be at this point in your life. Look at it this way - most college courses take 4-5 years for a student to complete. This is more than enough time for you to reestablish your credit at which time you can refinance your high interest rate loan for one with a much lower rate.
A third option that you should know about is called a combination loan. If you have bad credit due to poor money management i.e. a lot of debt this option may be for you. A combination loan will allow you to consolidate your existing debt and then apply for one big loan to pay all of it off. By consolidation your loans chances are you will end up paying a lower monthly interest rate.
I almost forgot about the Stafford Loan and the Perkins Loan. These loans are geared towards those that are having financial hardships
It is important to keep in mind that even in a worse case scenario, obtaining a student loan or a scholarship is nothing more than a numbers game. If you were to go online and apply for every student loan and scholarship program that you can find you will be approved for a few of them. You will be blown away at the number of available loans and scholarships that you can apply for. The fact of the matter is you just may end up getting a free ride regardless of your financial situation. The key to your success is to avoid being discouraged and to keep plowing forward.
About the Author:
Before you do anything regarding your student loan make sure you check out Tim Beachum's website Bad Credit Student Loans website.
posted by Credit Counseling at
10:48 PM
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