December 16, 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.


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.


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.


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 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!


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.

Student Loans For Bad Credit

Bad Credit Student LoanMost federal student loans (such as Stafford and Perkins loans) and grants and scholarship programs (such as Pell grants) do not require a credit check to be carried out and provide a student with significant financial aid. These programs are however need based and frequently carry other criteria that might make it difficult to qualify.

Even if a student does qualify, these loans only cover a proportion of the total education bill in many instances. If students are caught in this position then they may turn to alternative personal college loans to make up the financial shortfall, but private alternative educational loans can also have their own set of problems.

A credit check will almost always be required and this is not a problem as long as you have a good credit history. The problem is that ‘good’ is very much a relative term and if your credit report is not quite good enough then you might find that you are paying more than the usual interest rates for credit loans.

Fortunately, all may not be lost though as it is possible these days to find student loans for bad credit as well as a standard alternative student loan for bad credit.

On top of the quoted interest rate there are further monetary implications to student loans with bad credit. Fees will usually be tacked on to nominal loan amounts and relatively small bad credit loans of $3,000 may easily have fees of 4% applied before distribution. This means that $120 of the total will not be seen by the student but nonetheless has to be repaid. As a guide, every 3% of fees is equivalent to an additional 1% on top of the normal interest rate.

Private bad credit college loans do however carry a couple of advantages.

The first and possibly most obvious one is that money is available. Private lenders make money from the interest and fees that they charge and so have a vested interest in making funds available to borrowers and they will try hard to see that each and every borrower qualifies for a loan, even in the face of a poor credit score. Federal lenders on the other hand operate to an inflexible set of criteria and there is typically no appeal if your application is turned down.

Not having to deal with that unfriendly and frequently irrational bureaucracy is another benefit of alternative personal finance loans. Private sector lenders have customer service departments that are there specifically to deal with questions so that borrowers can get the answers that they are looking for. Federal loan programs usually have help available as well, but the answers one often gets are more miss that hit in terms of quality.

Other practical considerations which make alternative bad credit student loans desirable include:

The fact that neither students nor parents have to complete FAFSA (Free Application for Student Aid) forms and provide a mass of supplemental documentation. Private loan applications have a tendency to be simpler and indeed the whole process is easier. However, interest rates and fees might be higher or lower depending on the individual program and whether or not you are looking for student loans for bad credit.

The most sought after alternative loans attract no fees and interest rates that are roughly equal to the prime rate. This is the rate which banks charge one another or their largest and favorite customers. Getting an interest rate at prime is a good deal and finding a rate at 1% below prime is a great deal. To obtain that sort of loan it is normally necessary for you to have an excellent credit history but you can also get such a loan if you have a cosigner who has a great credit history.

In the end, the best way to find out whether an alternative loan will meet your needs is to go out into the market and see precisely what is available.

An alternative college loan is a necessity for most students to make up a shortfall in Federal funding but the problem for most students is that they feel they need to start their search by looking for no credit check alternative student loans. Do not forget however that there is a difference between student loans for bad credit and loans for somebody who simply has no credit history. In addition, remember that loans can often be obtained providing you have somebody who is willing to stand as guarantor on the loan for you.

Related Articles:

2011 Bad Credit Student Loans Information

Video Tutorial for Bad Credit Student Loan Applicants