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 Most federal student loans (such as Stafford and Perkins loans)...