Student Loans for Bad Credit without Cosigner
Studying isn’t an easy thing and paying for college can be challenging for many students.
It is especially true if you have got bad credit history because it affects the sum of money you can borrow.
If you are a student and happened to have a bad credit score, you have a perfect opportunity to apply for student loans for bad credit without cosigner.
There are two options you can choose from if you are willing to get a loan without a cosigner:
- Private loans. This option is not very popular due to the fact most students who apply for such a loan need to make payments while they are still studying in college. Moreover, private loans have high interest rates, specific repayment options, are difficult to qualify for with bad credit history and have no loan forgiveness programs.
- Federal Loans. This option is considered to be the best for students who have bad credit history. You don’t have to repay the loan till the time you graduate, the interest rates are fixed and while working at a certain job or area some part of your loan may be forgiven.
2 Key Reasons Why Federal Loans Should Be Taken into Consideration
Reason 1. Eligibility
Usually lots of students are eligible for federal loans regardless of cosigner and income, but there are certain requirements you need to meet:
- Be a citizen of the United States of America or an eligible non-citizen
- Possess a valid Social Security Number
- Be a regular student at an educational establishment
- Be enrolled half-time (the requirement needed for Direct Loans)
- Have financial needs
- Be registered with Selective Services (for males)
- Have good academic progress
- Have GED or high school diploma
Reason 2. Benefits
Federal loans are claimed to be the best loans taken without cosigner by students with a bad credit score.
– You don’t need a cosigner and can apply for a federal loan even with bad credit history.
– Interest rates are much lower than with other types of loans and are fixed. Moreover, the interest might be tax deductible.
– You can lower or put off the payments if you find yourself in a difficult financial situation.
– You don’t need to repay the loan until you graduate. Most federal loans even give an opportunity to start making payments 6 months after graduation.
– After graduation the amount you repay may depend on your income.
– Federal loans are a great chance to establish or improve your credit score.
So if you have got bad credit history, taking a student loan for bad credit without cosigner is the possibility to find your way out of a difficult financial situation.