Student Loans Without A Cosigner

If you have bad credit and you need money to go to college, there are some steps you can take to get the funding you need.

The Free Application for Federal Student Aid is the first thing you need to fill out. This is more commonly called the “FAFSA”. While the application itself is long and seemingly complicated, it is not as bad as you might think and it will be worth all of your efforts.

When you submit a FAFSA, you are applying for the Federal Stafford Loan. This loan is given to those who have a small income and it has a low interest rate. No credit check is involved with getting it. In order to receive it you have to be able to prove citizenship and financial need and you can’t have a former Stafford Loan in default.

When you fill out the FAFSA, it is a good idea to apply for a Perkins Loan as well. Do this as soon as you can because these loans are not endless and you don’t want to miss out on getting one. A Perkins Loan also does not require a credit check and is based on need. They come from school and government funds.

These two loans may not cover everything you need so you will probably have to apply for a private student loan. With a bad credit score, getting a private loan will probably be impossible without a cosigner.

A cosigner is someone who allows you to use their good credit to get a loan. If you are able to get a good cosigner, then you will be able to get your money for school. Choosing someone whose credit score is nearly as bad as or even worse than yours won’t help you. The loan companies don’t add credit scores together; rather they will literally be using the other person’s credit score as a basis for giving you a loan.

A cosigner takes a risk when they agree to cosign for you. If you do not pay on time or you default on the loan, they will be held accountable for payment. This will also reflect in their credit report. When someone trusts you enough to cosign for you, it is your responsibility to not betray their trust. Make your payments on time every month remembering that someone besides the loan company is counting on you doing so.