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Can I Get A Student Loan with Bad Credit?

It can be easy to find yourself wrapped up in debt as a student. But can you get a student loan with bad credit? Find out here.
Can I Get A Student Loan with Bad Credit

In the world that we live in, we usually hear of rich parents paying for their kids’ tuition. However, in reality, it isn’t like that at all anymore and young adults are severely struggling with bad credit. Admit it, pretty much every young adult has done silly things with their money. What they don’t realize at the time is the financial hardship they could be putting themselves through in the future.

With more people struggling with bad credit, it leaves you asking many questions, the most common being, can I get a student loan with bad credit? The fees aren’t getting any cheaper, so this question is very much reasonable. Luckily for you, the answer to this question is yes! There certainly are many ways for you to get a student loan with bad credit.

Can I get a student loan with bad credit?

Having bad credit certainly won’t disqualify you because there are federal loans available. They don’t factor in credit history which is a great helping hand for students. However, if federal loans and other aids aren’t able to help you pay, you may need to then look at getting a private student loan. Personal loans can be much trickier if you have bad credit, but here’s how you can do it.

Apply for a federal loan first

Federal student loans always carry far lower interest rates than private options do. They are also able to offer income-driven repayment plans. These will cap your payments at a portion of your income and extend your term length. You may also be able to qualify for forgiveness programs with federal student loans.

You will be asked to provide your financial details such as your income and savings, however, you will not be asked for your credit score or pull your credit report when you apply.

Find a co-signer

When looking for the answer to can I get a student loan with bad credit, having a reliable cosigner will open up far more options for you in the way of private loans. If your co-signer has a good credit score, it can help you to get a private student loan with a competitive interest rate. The interest rate will likely be higher than what federal direct student loans will offer. Make sure that you compare loan offers from multiple lenders.

To be able to successfully qualify, your co-signer will usually need a credit score in the high 600s. They will also need a steady income because they’ll be responsible to pay your student loan debt if you can’t.

bad credit student loan

Find loans that don’t require a co-signer

There are very few lenders around that offer private student loans for independent students. The difference in this is that they do not factor in credit scores. Instead, they consider your future income in regard to your loan. You can expect a far higher interest rate on these types of loans because credit isn’t taken into account.

Look for free aid

Loans aren’t the only thing you should look at when you are trying to answer the question of can I get a student loan with bad credit? In fact, you should first consider any free aid you can get. You may be able to find ways to get free money such as:

  • Scholarships
  • Grants
  • Work-study programs

The more you are able to take advantage of these programs, the fewer loans you will need to take out.

Build your credit and refinance private student debt

If you’re looking for a way to help out your future, start to restore your credit while you’re in school. Trust me, your future self will definitely thank you! Your credit score mainly depends on your ability to remake payments as well as credit utilization. It also depends slightly on the length of your credit history, account types, and any recent credit application.

Student loan bad credit

Apply for a private student loan

Federal student loans usually have a different borrowing limit depending on many factors. These factors are usually:

  • The type of student loan
  • What year of schooling the loan applies to
  • Whether or not the student in question is considered a dependent

Once you and your parent/guardian have reached the borrowing limits, you may need to then consider private student loans to make up the difference. There are many different banks, credit unions, and online lenders that offer private student loans. While you may need a good credit score for some, many online lenders out there will allow loans for bad credit which helps answer the question can I get a student loan with bad credit.

The bottom line – Can I get a student loan with bad credit?

Can I get a student loan with bad credit? Well, the answer is yes! If you are someone who has a less than ideal credit score, check out Bad Credit Loans Australia. With a large range of loan products available, we strive to make a long-term and meaningful commitment to all of our customers to help you back on track.