How to Obtain a Student Loan With Bad Credit

Even if you have very bad credit, you can qualify for a federal student loan without a cosigner. The federal government does not consider your past credit history. If you choose to pursue a private student loan, you can probably get a loan with a cosigner. You can take measures to improve your credit score before you apply for your student loan. To receive a federal student loan, you must be enrolled in college at least half of the time. You also must be making satisfactory academic progress.

Instructions

    • 1

      Navigate to the Free Application for Federal Student Aid (FAFSA.gov) website. Complete the FAFSA worksheets. If your parents can claim you as a dependent, provide parental information on your application for the student loan. Obtain their signatures. If you qualify as independent, you are not required to provide this information. If you must provide your parents' information and signature, this doesn't mean that they are acting as a cosigner on your loan. The federal government uses this information to determine your expected family contribution (EFC).

    • 2

      Complete your application for a student loan on the FAFSA website. Examine your student aid report (SAR) when it arrives. Check with your college or state government if you require additional loans or if you don't qualify for a federal loan.

    • 3

      Pursue a private student loan only if you don't qualify for a federal, state or institutional student loan or if these loans won't cover all of your college expenses. Check your credit report and your credit score in advance. If your credit score is below 580, you may need a cosigner who has good credit. If the score is above 580, you may be able to get a student loan without a cosigner. A cosigner can be anyone, including your parent, another family member, your spouse or a friend.

    • 4

      Check with your bank, join a credit union or look online for student loans for people with bad credit. Shop around to get the best possible interest rates.

    • 5

      Watch out for bad credit student loan scams. Some private student loan lenders attempt to impersonate government agencies to scam unsuspecting students with bad credit. Other unscrupulous lenders may offer gifts or promotions to prevent you from determining whether the terms of the student loan are fair. If you're uncertain about a prospective lender, check its reputation with your state attorney general or on the Better Business Bureau website.

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