Federal Direct Student Loans Hope Bad Credit Students
There is good news for students with bad credit, you can still get a student loan. While many who just graduate are seeking student loan consolidation lenders, you can make your application good and know that you are guaranteed an education.
They are many programs for people with bad credit, no credit and even those who had filed bankruptcy to gain a student loan at a reasonable rate. However, you will not be able to get the lowest rate student loans, you will be guaranteed a loan from either a private institution or a federal sponsored student loan.
One of the best loans recommended for persons with bad credit are the federal students loans, direct federal student loans are almost a guaranteed student loan for student. These are not credit driven but need driven programs, and many do no credit check. This makes it easier than ever to acquire but has limits on the amount you can received.
Key points to note for the Direct Federal Student loan:
Instant Student Loan: Once you made the application online, your application is generally approved in half and hour and you only need to sign the documents.
Stability: Direct Federal Students loans are issued by US Department of Education and as a government agency, they are not going out of business soon, this provides stability with your future education needs and stability in lending.
No Profit Motives: As a federal government program, there are no motives on turning a profit but providing access to education for citizens. As such the loans are not sold and upon graduation, you can participate in federal student loan consolidation programs, these allow students to consolidate federal student loans and make one small monthly payment.
Streamlined with FAFSA: Since all your documents are processed by your FAFSA Pin, it makes the process more streamlined and also makes record keeping better for you.
No Added Types: The Direct Federal Student loan is not flexible like other loan program and is just one program with now variations on better rates or deals to turn to.
No Switching: There is no switching of lenders, since the lender is the US Department of Education, all the funding comes through them.
Service with a smile: It is everything but “service with a smile.” While you can sing the praises of getting a student loan with bad credit, the customer service is poor. You cannot make payments on the phone, you must make payment s online and if the computer is down, or your internet is off, you have no choice.
While the dilemma of having bad credit might be a set back for a period, it does not have to be your life demise, you can continue your education and get back on track. Using the Direct Federal Student Loan program is an easy way and by most, it is a guaranteed way that most students find an education and better they life, career and future.
In life we all find reasonable set backs, once you graduate, you can go the route of consolidation of federal student loan, a direct federal student loan is by the government and this gives you a choice to life yourself above the challenges you face today.
Bad Credit Private Student Loan – Options Available
You are not the only private student with bad credit looking for a loan to continue the education and settle in life. There are a lot of students like you.
The cost of education has sky rocketed and the tuition fee, cost of books, hostel expenses and the cost of transportation has gone up as well. There is no need to panic because of the bad credit score. The loan is still available in the market.
If your credit scores were good there would not have been any hassles in getting the loan. But, the bad credit has become a road block for you in getting the loan. It may be little difficult, but it in not impossible. As long as you are disciplined and committed to continue your education nothing can stop you from taking the loan.
You have to bring in a co-signer to sign the loan documents. The advantage of getting a co-signor is that the loan will be given easily. The bank or the lender will be satisfied with the fact that even if you do not repay the loan the co-signor will repay the loan. You can continue the education without any hindrance and settle in life.
Before approaching a banker for a private student loan, list out the various expenses you have to incur in perusing the education. Like the tuition fee, hostel expenses, cost of books, living expenses and transportation expenses. Also, list out the sources from where you can meet the expenses. It is like a cost of project plan. Now the difference or the shortfall in the amount can be taken from the bank.
Normally, the bad credit private student loan is given either in the form of secured or unsecured category. In the secured category you have to offer a collateral property to the lender and take the loan.
Whereas, in an unsecured category as, the name defines it is an unsecured loan. The rate of interest and the time given for repaying the loan is softer in the secured loan. You have to pay higher rate of interest in an unsecured loan.
Normally the family members offer their property as collateral security for the loan of their children. You can approach your family members to help you by offering a property as collateral to your loan. Your family members know you well. They are also aware of your hard- working nature and interest in continuing the education.
The repayment period will normally be 20-25 years. The unsecured loan carries a high rate of interest as it is not backed by any collateral. While taking a loan be extra cautious in minimizing the loan amount. Avoid unnecessary expenses Maintain strict discipline in spending.
The loan industry has changed a lot over the years. The special category for bad credit private student loan has been operating in various banks. You can talk to one of the banks. Alternatively, you can apply to a bank online. Provide all relevant details to the bank and do not hide any information. The advantage of researching in the loan market is that you can strike a better deal with regard to the rate of interest and the repayment period.
You can stop working part -time in three or four places to fund your education and concentrate on the studies once if you are able to get a private student loan even in spite of a bad credit history. Your hard work and determination will come to your help in continuing the education and settle in life.