Student Loans for Bad Credit without a Cosigner: Going through college, almost every student requires financial assistant at least once. Getting student loans with good credit is no issue your loans get approved without a second thought. If you have a bad credit but have cosigner for your loan, your loan will get approved. But getting a student loan with bad credit without a cosigner can be very difficult.
What are Student Loans?
Student loan is like personal loans. You give an application and receive the desired amount of money on approval. But student loans have lower interest rate and their payment starts after the student graduates.
What is a Cosigner?
When you apply for a loan with bad credit the lenders notices a chance that you won’t be able to pay the loan back. Consigner is someone you know who takes responsibility to pay your loan back with interest in case you fail to the loan.
Off course the credit history of the cosigner is checked as well.
Types of Student Loans with Bad Credit without a Consigner
There are two types of loans offered without a cosigner to students with bad credit.
- Private loans
- Federal loans
Private Student Loans
Private student’s loans are not a good option for students with bad credit. These loans have relatively high interest rates and the payments of some of them start during the college years. This can be a difficult task. These loans also don’t have any loan forgiveness program.
These loans are offered by banks or financial organizations.
Federal Student Loans
Federal student loans are good option for students with bad credit and no cosigner. These loans have relatively low interest rate and their payment start after graduation. The interest rate is also fixed.
These loans also have loan forgiveness options. Like working in a certain company or getting great grades forgives a part of your loan.
Requirements for Federal Loans
To apply for federal loan you should be enrolled in any college. You must be worthy of the loan offered. You must have good grades and you must have a high school diploma (or GED).
Pros of Federal Student Loans
Federal student loans don’t require a cosigner. You can apply for federal loans even with a bad credit. These loans have low interest rate and flexible payment plans. Your payments starts after graduation so you can spend you college days in ease.
You can lower or forgive your loan if you find yourself in financially difficult situation. You also get discount offers if you maintain good grades. If you work in particular field or situations a certain amount is dropped from your loan
Most federal loans offer a facility to start paying your loans six months after graduation. After graduation your monthly loan payments depend upon your income. Federal loans help students with bad credit to stabilize their credit score as well.
Even with bad credit and no cosigner federal loans can help your situation. It is good to take this opportunity to improve your credit score.