Bad Credit Students Loans Without a Cosigner
Paying for college can be difficult enough without having to deal with bad credit. Your credit history can affect how much loan money you may receive. If you have bad credit and no cosigner, your best bet is to apply for federal student aid. Most federal loans are based on financial need and do not require a cosigner or credit check.
If you have good credit but no cosigner visit this page to get started
Most students are eligible for some type of federal aid regardless of income and whether or not they have a cosigner. To qualify for federal student aid, you must meet a few requirements.
According to the Free Application for Federal Student Aid (FAFSA) website, basic eligibility requires you to:
- demonstrate some kind of financial need;
- be a United States citizen or an eligible non-citizen;
- have a valid Social Security Number;
- be registered with Selective Services, if you are a male;
(Most males must be registered to receive federal student aid. Males must register if they are not on active duty in the United States armed forces. Register online at www.sss.gov)
- be enrolled as a regular student;
- be enrolled at least half time for Direct Loans;
- maintain good grades in college;
- have a high school diploma or GED.
Note: Students with criminal convictions who are incarcerated have limited availability to federal student aid. Once released, you can apply for student aid. If you are on probation or parole, you may apply for federal financial aid, but your options may be limited.
Federal Loans offer many benefits to people with bad credit and no cosigner compared to private loans, including
- lower interest rates;
- no cosigner;
- no credit check;
- flexible repayment plans;
- interest-free loans;
- the possibility of loan forgiveness.
Federal Loan ProgramsDirect Loans
Direct Loansare the largest federal student loan program. With these types of loans, the lender is the United States Department of Education. There are four types of Direct Loan Programs.
- Direct Subsidized Loans are available to undergraduate students who demonstrate financial need. They are slightly better than Direct Unsubsidized Loans. The Department of Education pays interest on this loan while you are in school.
- Direct Unsubsidized Loans are available to undergraduate, graduate and professional students regardless of need. You are responsible to pay interest on this loan.
- Direct Plus Loans are available to graduate and professional students and parents of students. It may be difficult to qualify with bad credit history.
- Direct Consolidation Loans allow you to combine your federal student loans into a single loan and make a single payment.
Federal Perkins Loans
If you can demonstrate exceptional financial need, you may qualify for a Federal Perkins Loan. The school is the lender on this type of loan. Not all colleges offer Federal Perkins Loans.
The first step to receiving federal student aid is to apply online. Visit the Free Application for Federal Student Aid (FAFSA) website to begin. Pay attention to all deadlines. Priority is given to students who apply by March 1 of each year, so start the application early.
If you have bad credit, a federal student loan is the best way to get a student loan without having a cosigner. So, what are you waiting for? Watch this short video to help you get started right now.
How Federal Student Aid Can Save Your Day
Finding adequate funding for college education is one of the most challenging situations that students go through. Most of them can hardly find a sure source of fund, especially if they have other factors that make the situation worse for the. For many, student loans are the only solution that they got. However, it becomes even more difficult when they have a bad credit history. This is because when calculating the amount that you are eligible to receive, your credit history will be one of the biggest considerations. The lack of a cosigner can also make things worse. Because of this, you need to know about another option that is more reliable.
Introducing Federal Student Aid
Federal Student Aid comes with a lot more benefits when compared to private student loans. The requirements to get this funding are quite easy to meet, and this explains the reason such aid has been popular among students for a long time. The requirements include the following;
- Proof of financial need
- Be either a citizen of the United States, or an eligible non-citizen
- Provide a valid Social Security Number
- Males to register with selective services
- Enrollment as a regular student
- A GED or high school diploma
- Keep a good performance grades
The fact that it encompasses more benefits than just paying for your tuition fees makes it even better. Have you been wondering why most people prefer to go this way than borrowing from private lenders such as banks? The following are the reasons.
Repaying your student loan
With Federal Aid, you will not be required to start paying your student loan until your status changes. This means that you can comfortably go through your college education up to your graduation without worrying about repayments. During such times, you may not have enough income to sustain yourself, leave alone paying a loan. Therefore, you are accorded the opportunity to focus on your studies, and plan for your future without being weighed down by a stiff loan repayment schedule. Once you leave school or change your enrollment status to less than half-time, you may start paying back the amount that you owe the federal government.
The interest rates
When you choose Federal Aid, you get to enjoy a fixed interest rate on the amount that you borrow. One of the problems that most people have had to go through is regular adjustments on rates. Some thought that they would pay a certain amount only to find out that it has been adjusted to a higher one. In addition to that, the interest rates that you are going to find under this borrowing model are usually lower than what you will get from private lenders, and much lower than what is charged on credit cards and personal loans. If you are worried about high interest rates, you have just found the perfect solution.
If you are an undergraduate student and you are financially needy, you will qualify for subsidized loans from the Federal Student Aid. What this means is that the amount that you will be required to pay will not be as much as what others will be paying. This is good news for students who really need money to go through college education, but they are not even certain whether they will be able to repay it. What happens is that while you are in school, the government will take over the repayment of interests. Subsidization however varies depending on the needs of every applicant and therefore, you should not be surprised when others get deals that are different from yours.
No credit check
Most Federal Student Loans do not require a credit check for applicants. This is one of the most important factors that set it apart from private lenders. While others will be interested in knowing about your bad credit student loan, this option does not care about that. This is the reason why almost anyone can get a loan as long as they meet the eligibility criteria. The only exception are students who are applying for PLUS loans. Because of this, you can use this as an opportunity to improve your credit score. Remember that when you finally graduate and start dealing with the real world, your credit history will play a major role in the kinds of financial deals that you get. Therefore, this is the time to start going for those opportunities that will help you to build a good score, not harm it.
There is no cosigner
If you have ever applied for a student loan from private lenders, you know that it is mandatory to have a cosigner. What if nobody is ready to sign for you? One thing that you have to understand is that the cosigner takes a huge financial responsibility and risk by agreeing to append their signature on your application. They are simply agreeing to pay the loan if you are unable to. Therefore, it may be difficult to find a cosigner if you have not built a network of trusted people. For example, if you are just new in your state, nobody will want to do this for you. The good thing is that with Federal Student Aid, you do not have to worry about this. You only will be required to complete your application form with accurate information, and hope that it will be approved by the relevant offices.
There is no doubt that Federal Student Aid is the best alternative for those who are frustrated by private student loans.what makes it even better is the fact that if you have difficulties during the repayment period, you can always renegotiate a different schedule. For example, they will allow you to postpone the payments temporarily until when you are able to get back to it. In addition to that, you can ask them to lower the payment amounts so that you can comfortably pay, even though it will increase the duration that you need in order to complete the payments. It is all about easing your financial burdens both during college and after graduation.