June 25, 2017



How to Apply for Student Loans with Bad Credit

student loans without cosignerMany people think that applying for student loans with bad credit would be futile. It is very difficult to secure student loans without cosigner support if the borrower has insufficient or bad credit. However, many student loans are subsidized by the Federal government and are intended to help students with low income to obtain a college or vocational school education. Some people refer to these as “bad credit student loans” or “student loans for bad credit.

Applying for a student loan with bad credit is as simple as filling out the Free Application for Federal Student Aid. This can be done online in as little as 2-3 hours, assuming all of the necessary information is available. To fill out the application, a student needs:

  • Student’s social security number
  • A PIN (Personal Identification Number)
  • Student’s marital status
  • Student’s citizenship and state residency status
  • Student’s education history
  • Intended major course of study
  • Expected course workload
  • Interest in student loans and work study to supplement other aid
  • Income taxes and deductions (including spouse’s)
  • Spouse’s income
  • Assets
  • Student’s dependency status
  • Number of household members
  • List of schools student is considering (up to 10)
  • Parents’ level of education
  • Parents’ income taxes and deductions
  • Parents’ household assets
  • Family members
  • Parents’ state residency
  • Parents’ age

The FAFSA becomes available each year on January 1, and should be submitted as soon as possible. Financial aid may be distributed on a first come-fist served basis at certain schools, so early submission is vital for maximizing the amount of assistance received.

A FAFSA on the Web worksheet available from the high school counselor will help in preparing to fill out the FAFSA accurately. The counselor will be able to answer any questions that arise so that delays and mistakes can be avoided.

Some common mistakes that are made when filling out the FAFSA are:

  • Using a nickname instead of the legal name
  • Leaving a field blank. If the question does not apply, use a zero.
  • Not reporting all sources of untaxed income
  • Using the W2 form instead of the 1040 federal tax return to report income
  • Not including the student in household size, even if the student lives elsewhere
  • Not signing the application or, if a dependent, not having parents sign

Once the FAFSA is filled out, have another person check for accuracy before submitting it. Be sure to submit the form as early as possible. Also check with the school the student will attend to determine what, if any, other forms should be submitted to the financial aid office, and the deadlines. Instead of simply aiming to get the forms turned in by the deadline, get the information submitted as early as possible to increase the chances of obtaining student financial aid.

If a loan is awarded, the student will need to submit a Master Promissory Note (MPN), which is a pledge to repay the loan and any interest accrued in a timely and responsible manner. Subsidized loans do not have to be repaid until the student leaves full-time status. Unsubsidized loans, which usually require a cosigner or good credit, may require repayment to begin immediately on disbursement of the money. Read documents carefully to be sure you fully understand what is required.

Whatever the financial condition, most students with good school records who want to pursue a college or vocational school degree should be able to do so. Some grants are available that will ease the way. Self-help measures such as work study or loans can also be obtained. Getting student loans with bad credit or student loans without cosigner support is not the impossible dream many believe it to be.

 



The Latest on Obtaining a Student Loan Without Cosigner Support

student loans without cosigner

Federal Student Loans With No Cosigner

College costs rise every year and middle class income is declining, so students need to know how to get student loans without cosigner assistance. The best option is to apply for a Federal student loan through the Federal Direct Loan Program. This requires that the applicant demonstrate a need for assistance.

A Federal loan offers several advantages over a private loan. Perhaps the most important is that the interest rates are low, so repayment will be much easier. Students are able to get government student loans no cosigner required because they are based not on credit but on financial need.

The first step is to figure out how much money is needed. Use caution when taking out student loans. They will require repayment and cannot be charged off in a bankruptcy. The higher the amount a student borrows, the more difficult it will be to repay. Many students accumulate $100,000 in loan debt while obtaining a bachelor’s degree. This is a bad idea. Even at the 5% rate for a Perkins loan, this amounts to $417 per month just to pay interest, assuming repayment is started right away. Figure out the lowest amount possible to pay for college, and stay within that budget to avoid this.

Apply for Federal student loans without cosigner by filling out a FAFSA (Free Application for Federal Student Aid). This can be done most easily online at www.fafsa.ed.gov. The FAFSA also covers need-based student grants, which do not have to be paid back. In this economy, there’s nothing that makes a student happier than free money.

The FAFSA should be submitted as soon after January 1 as possible in order to obtain the best deal. Don’t wait until the deadline, which varies from state to state. Looking for student loans no cosigner should begin as early as possible.

Private Student Loans Without A Cosigner

Most students just out of high school will have a difficult time obtaining private student loans without the help of a cosigner. The reason for this is that they have insufficient or poor credit. Insufficient credit means that they have not taken out loans and made regular payments on them. This process is how credit is built. Banks hesitate to lend money to people who have not established a good record of repayment.

Other students may have taken a loan and not repaid it, or made late payments. These individuals have developed a bad credit score, which makes them an even higher risk in the eyes of a lender. Repairing a bad credit rating will require diligence and a good strategy.

To obtain a private student loans without cosigner, it is necessary to build or repair credit. The easiest way to establish a credit history is to accept an offer of a credit card either from a bank or from a store. Make some small purchases and pay them off. Do not allow a large balance to build up, but keep making regular payments of more than the required amount. Pay early or on time to keep building a good credit history.

Ensure You Have A Good Credit Rating

If you have bad (or no) credit, please refer to the student loans with bad credit section for more information. It is easy to check the credit rating by going to AnnualCreditReport.com. This is the only authorized site for the free credit report from the Federal Trade Commission. Every consumer has a legal right to obtain this free credit report each year. Many people are fooled into using private companies that charge fees. The FTC report is free and legitimate.

FTC allows a consumer to request reports from all 3 major credit reporting agencies at once, or to request each report individually. Spacing out the reports allows the consumer to check credit rating throughout the year. Request 1 report and take steps to improve the credit rating. Then request the next report, and so on.

Check the credit report to be certain there are no errors. If there is a discrepancy between the consumer’s records and the credit report, call the agency and find out how to get it resolved. This is a necessary step to repair credit.

Improving or building a credit store takes discipline and time. If debts have accumulated, the first step is to pay them down. If a high balance has accumulated on a credit card, this needs to be paid and the card not used again so that the credit remains available. This will improve the credit score.

Taking a new loan for a small amount and paying it off will also help to build a good credit score. Smaller loans are easier to obtain than larger ones. Sometimes a cosigner is needed for the first loan. After good performance on one loan, it may be possible to get the next loan without a cosigner.

There is no easy way to obtain private student loans with no cosigner. Creating a plan for building or repairing the student’s credit and following through may help. Another possibility is to obtain a loan through a credit union if the student is a close relative of a member in good standing. Some credit unions offer loans to family members at a fairly reasonable interest rate.

Whichever method is used to obtain the loan, keep in mind that it must be paid back. Take out the smallest amount possible, and read the fine print to be sure it is a good deal. Obtaining a student loan with a low interest rate will help in the quest for a marketable degree.



Top 5 Tips for Student Loans With Bad Credit

Student Loans with Bad Credit TipsIf you are a student and you need a loan to help pay for tuition, transportation, books, or whatever, but your credit isn’t as good as it should be, you can relax. It’s not impossible for a student with bad credit to get a student loan. Bad credit student loans are approved everyday for students that have less than desirable credit. The trick is to learn the top five tips to getting student loans with bad credit.

Build A Good Credit History

It is a known fact that no credit is bad credit, if this is the case you can take out a small starter loan (usually around $100.00 to $200.00) and pay it back like clock work, always on time with the payments and maybe a little extra just to speed it along.

Student credit cards can be used to build a students credit history. If a student credit card is used to build credit history the student should keep in mind that what they spend must be paid back with interest. There are many people who get into financial trouble by using credit cards.

Research

Students credit scores are most often one of the first determining factors when taking out a student loan with bad credit. Before applying for a student loan with a bad credit history the student should do some research and find out exactly what the credit score is and exactly what is causing the students poor credit score.

There are times when a students credit isn’t as bad as expected, or mistakes have been made that can be fixed with a few phone calls and faxes, and other times students poor credit ratings are caused by undiscovered identity theft.

Repair

Whatever the reason for a students poor credit it is hardly ever impossible to get a student loan, even with bad credit a student can get a loan. However, the bad credit can and needs to be repaired. There are many agencies that will aid a student in repairing their poor credit and making it possible for the student with bad credit to not only get student loans, but other loans as well.

Federal Plus Student Loans

This is a loan by the Federal government that can be taken out by the parents of a college student. The Federal Plus loan can be used in addition to a students financial package. Often students who don’t live close to campus need transportation to and from school, and expensive computers and computer software. Graduate students are allowed to apply for the Federal Plus Loan as well. If a student doesn’t pass the credit check to get the loan they can have someone that does have good credit to sign with them as a co-signer.

Federal Subsidized Stafford Loans

This loan is given to the student themselves and approval is based on the economical need of the student. If a subsidized loan is approved the student won’t be charged interest on the loan until they are required to pay back the loan. The Federal government also gives Unsubsidized Stafford Loans that are not granted according to the students economical needs. These loans are available to all eligible students and the interest begins as soon as the student receives the money.

Student Loans For Bad Credit – Don’t Let The Past Stop Your Future

The government and loan institutions of today recognize that student loans are often the only way for students with bad credit to start or continue their schooling. They also realize that by investing in a students future they are investing in our nations future as well. If you are a student with bad credit who needs a student loan you don’t have to let the facts of your poor credit history effect your decision to continue your education.



Student Loans Without Cosigner Support Video Part 1 Now Live!

Student Loan Without Cosigner VideoThis month we are featuring student loans without cosigner support from Sallie Mae. Sallie Mae is a trusted private student loan company that offers flexible terms, student loans without cosigner help, and bad credit student loans. Please note that the Student Loans Center does not receive compensation from Sallie Mae and therefore this article is unbiased towards their services.

Please take the time to check out the video to learn more about their flexible terms and services. Enjoy!



Student Loans For Bad Credit Video – Now Live!

Student Loan bad credit videoThis video provides a high level overview of the different options available for students seeking to obtain student loans for bad credit. It includes references to grants for college as well as information about Stafford and Perkins Loans.

Please take the time to check out the video below. Enjoy!

 



Student Loans Without Cosigner Video Part 2 Now Live!

Student Loans Without Cosigner VideoThe second installment to helping students obtain a loan without a cosigner is now live! Presented in this video are tips on how to obtain a student loan without a cosigner, plus other important information such as eligibility criteria, and a direct comparison between Government issued student loans vs. Private student loans!

Please take the time to check out the video below. Enjoy!



The Raw Truth About Student Loans for Bad Credit Adults

Bad Credit Student Loan

Getting a Student Loan with Bad Credit

It’s a tempting proposition, in the current job market, to try to go back to school instead of mailing out hundreds of resumes every week without effect — but if you’ve worn out your FAFSA and you’ve been unemployed for any length of time, you’ll almost certainly have to look into the market for student loans for bad credit individuals.  A bad credit rating used to mean that a person wasn’t terribly responsible, but in the middle of a time of nearly double digit unemployment, all it means anymore is that you were one of the unlucky many who hasn’t been able to recover your livelihood yet.  On the downside, most traditional banks still won’t touch you with an eleven foot pole — but the silver lining is that there are many smaller, private institutions that understand and are willing to take a risk on your college financing.

 

One thing you have to understand, however, is the inverse relationship between credit score and interest rate.  You will find that there are, in fact, student loans for bad credit folks out there — but the interest rates on those student loans will be quite high.  That’s not the kind of obstacle you can’t overcome, however — with a bit of financial responsibility and maybe some help from a kindly banker, you can often improve your credit rating over the course of a few years.  Once you’ve done that, you can consolidate your student loans for bad credit adults and improve your interest rates.

This is all, of course, assuming that you don’t have a cosigner with a good credit score who can sign alongside you.  If you do, acquiring student loans is much easier and more successful — it’s bad credit student loans without cosigner assistance that require significant flexibility and commitment to obtain.  In general, the only major limitations on cosigners is that they must know you personally and have proven ability to be able to repay the loan if you fall short.

A few notes on repaying private student loans for bad credit folks: depending on where you get the loan from, such loans are almost always deferred until between one and six months after the date of graduation — giving you time to establish a source of income before they kick in. That said, many of them do have fairly strict penalties for nonpayment, including an increase of the interest rate.

So, a short review: if you have bad credit, the first thing you should do is check your options for federal college financing.  If the government doesn’t have anything, ask around for cosigned loan options.  If you must shoot for student loans without cosigner aid, accept that you’re going to have to take on one of the high interest rate student loans for bad credit individuals, and prepare yourself to engage the necessary level of fiscal discipline needed to be able to refinance at a lower rate before the deferment period ends.

Follow that plan, and you’ll find your way into college as easily as possible.



Safely Finding Student Loans Without Cosigner Assistance

student loan without cosignerThough it’s a difficult proposition that will take some dedication, finding student loans without cosigner assistance is possible, even in the today’s tough economic times.  The most important thing you can have when you go on the search for no-cosigner student loans is a high credit score.   Even if you don’t have that, it’s still possible to find ‘bad credit’ student loans — though you’ll have to work your butt off if you need bad credit student loans without cosigner help.  Have faith, however, because it can be done: private college financing institutions are willing to negotiate with people in surprising circumstances given the recent recession.

In order to secure yourself a functional set of student loans without cosigner aid, the first thing you’ll have to do is search around a bit and find some private institutions that are willing to give out no-cosigner student loans, and if necessary no-cosigner student loans for bad credit individuals.  Of course, in the Information Age, the best place to look is online — though there is something to look out for in that sphere.  There are a lot of sites that will offer you an instant response on your student loans’ application, but those sites also tend to ignore mitigating circumstances and judge you purely on the numbers.

Ideally, then, you need to find a site devoted to college financing that is willing and able to have someone call you and talk to you about your specific circumstances.  Of course, it’s your responsibility to make sure that you’re working with a legal and reputable site before you turn over any personal information, so it’s probably best to call them first.  Generally the sites that offer ‘risky’ loans like student loans without cosigner presence tend to have real people pretty easily accessible on the other end of the line, so don’t hesitate — just call and verify quickly that the site is legit, and then fill out their forms.

Generally speaking, said forms will require you to provide your name, address, phone number, email address, date of birth, the total amount of student loans you’re seeking, and if you have it, the account number where your college funds need to be deposited.  Obviously, while all of this information is needed to access the financial records the institution will need in order to authorize any student loans without cosigner authorization, it’s also exactly what a identity thief might want to mess with you.  Thus, the precaution of the phone call.

Once you’ve finished the application, you’ll receive word back from the lender (often in the form of a phone call) within a short time.  Keeping in mind that most such loans run to a maximum of about $15,000, you might not be done yet — sometimes it takes several such student loans in order to make up a couple of years’ worth of tuition.  Each loan makes the next one harder to get, but if you’re persistent and you’re willing to take some hits on your interest rate and repayment terms, you’ll eventually find enough student loans without cosigner requirements that you’ll get into school — just keep looking!

Related Articles: Student Loans Without a Cosigner



How To Consolidate Alternative Student Loans

Consolidate student loansMost students will need to take out a series of loans to fund their way through college and in no time at all it is easy to find that you are making several loan repayments on different days every month and, although the amount of money you are paying on each loan may not be high, the total sum each month for all of your loans can be crippling. Indeed, it is quite possible that this sum will eventually be more than you can afford.

In many cases the problem does not actually arise until you have left college because a substantial proportion of your college funding comes from federal loans which do not need to be repaid while you are still in school. However, these loans are often insufficient to meet your financial needs and so many students turn to private alternative student loans on which repayment is normally required to start as soon as the loans are drawn down.

The procedures to be followed for consolidating government student loans and private alternative student loans are quite different and, in the case of alternative loans, it is very much a simple case of rolling all of your individual loans into one single loan. In other words you take out one single consolidation loan and use the money from this loan to pay off your other loans. This then leaves you with just one single payment to make each month.

Having said consolidation is simple there are a few things that you need to look out for. For example, if you are paying off a loan which has not been in issue for too long then you may find that there are redemption penalties on the loan and that it is actually more expensive to pay it off than to keep it running. You will also need to look carefully at the interest rate on your consolidation loan and compare it to the interest rates that you are paying on your individual loans. It is often possible to reduce your interest rate with a consolidation loan but this is not always the case and you could end up paying more than you are already paying in interest.

The commonest reason for consolidating alternative loans is to reduce your monthly payments and the usual way in which this is achieved is by extending the period of the loan. In other words, for example, you take a series of 10 year loans and combine them into a single 20 year loan. This allows you to reduce your monthly payments but it also means that you are now going to be saddled with this new loan for very much longer and end up paying back a lot more money in the long run.

Alternative loan consolidation can often be very useful, if not indeed necessary, and is also often quite easy to arrange. You should however go into it with your eyes open and make sure that you know just what you are committing yourself to.



College Loans Consolidation

Consolidate American student loansIf your college loans, whether federal student loans or private student loans, are running out of control then college loans consolidation can save you a lot of headaches.

Over time many students find that have accumulated a series of education loans from several different lenders and that not only does this represent a considerably debt, but they are also having to pay out more money than they can afford each month.

At best this means that they are going to have to tighten their belts but, at worst, it means that they will start missing payments and end up with a bad credit rating – which is the very last thing you need when you are just starting your working life!

However, making use of a student loan consolidation service can help considerably by reducing the number of lenders you have to deal with, often to just a single lender. It can also reduce your commitment to a single monthly payment which, depending on the interest rates on your existing loans and the interest rate on your consolidated loan combined with an extended repayment period, can reduce the amount of money you have to find each month considerably. Indeed, in some cases, it can cut your monthly payments by more than 50%.

Just how you go about achieving college loans consolidation will depend upon the source of these loans.

If your loans have come from the government (for example Stafford or Perkins loans) then you will need federal education loan consolidation money and that in essence means a US Dept of Education consolidation loan.

Federal government student loan consolidation is only available for loans issued under the Federal Family Education Loan Program (FFELP) but allows you to consolidate these loans into one single loan and to reduce your monthly payments by extending the period of the loan. In this case consolidation is generally only available after you have completed your college course, together with any post-study grace period, and are fully responsible for the repayment of all federal loans.

When it comes to college loan consolidation for loans from private sources there is no ‘waiting period’ and you can consolidate these loan just as you would credit card or any other loans at any time on the open market.

The secret when it comes to loan refinancing is to consolidate your loans before you start to run into difficulties meeting your repayments and to ensure that any consolidation program you apply to will present you with a manageable repayment plan.