Do you need to get approved for student loans? Perhaps you’re a young professional aiming to boost your skills and knowledge to develop your career further? Or maybe you’re someone older who wants to get back to college to further your education? No matter who you are or why you’re looking for a student loan, this is a great first step to finding the success you want. However, it’s a fact of the game that a large number of people are turned down for student loans each year. If you are one of those people who has been rejected, don’t give up just yet – there may still be options available to you that will help you get the financial support you need for your studies.
Many people have won acceptance after being turned down by using a co-signer or spending time rebuilding their credit. These two points are great options to increase your chances of getting that loan of your dreams. Before you apply for a private loan, you should make sure you have explored as many alternative options as possible, including researching federal loan avenues, scholarships and grants.
What about no cosigner student loans?
A private no-cosigner student loan may be available to you if you have at least fairly good credit. This will normally mean your score is a minimum of around 650. Many people might assume that they have bad credit but never do that. Your score could be a lot better than you think. There are various ways to find out your score, like creating an account with NerdWallet and logging in. Or you can check with your credit card company to see if they offer a free credit score check.
Whilst many students are able to rely on co-signers, many cannot. You won’t need a co-signer if you take out a federal student loan. However, if you are a parent or postgraduate and seeking a private student loan, you will need to have a robust credit history or a co-signer.
So, how does it help to have a co-signer? Well, a co-signer can help you actually get your student loan by decreasing the risk of you not paying back the loan. Plus, having a co-signer can even reduce interest rates. Your co-signer will need to have an impressive credit score if you are to get access to a private loan.
Who can be your co-signer, you may ask? Co-signers normally come in the form of relatives or friends and are tasked with repaying your loan if you don’t. Once you have made a number of payments yourself, your co-signer may be released from the deal.
Who will give me a student loan?
If you are unable to get a federal loan, you may be able to access funds from a credit union or a bank. It’s a good idea to look at interest rates and compare them so you know you’re getting the best deal you possibly can. You wouldn’t want to be stuck with a less-than-ideal interest rate for something that you have to spend years paying back. Some companies allow you to take out loans without a co-signer or credit history.
What about bad credit student loans?
Having bad credit doesn’t have to mean missing out on student loans. Undergraduate students can get access to grad student loans despite poor credit, whilst parents and graduates with scores that are less than perfect may be able to acquire a federal student loan if there are no negative marks on their credit report.
A private student loan could be helpful if a federal loan won’t settle all costs. Undergrads can benefit from direct subsidized loans, direct unsubsidized loans, and Perkins loans.
Meanwhile, a graduate student or parent may be able to access a direct unsubsidized loan, a direct PLUS loan or a private student loan specifically designed for students that have poor credit.
It’s never advisable to use personal loans or credit cards to get you through your studies, as you are likely to pay much more interest than you would when using financial products specifically designed for students, and won’t get the same perks normally offered by student lenders. Don’t borrow more than you need. It may be easier to get approved for student loans than you think.