For those people, who want to go to college, but they do not have the money and their credit is poor, they may want to apply for a poor credit student loan. There are essentially two options for funding when it comes to students with no or less-than-perfect financial histories, and that is applying for either government loans or no-credit loans from private lenders.
Government loans are the most popular choice today for students needing funding for their college educations.
This is because federal loans do not require students to have excellent credit or cosigners. The student’s financial history is not a factor in determining eligibility for these loans.
Students simply must show that they are in financial need, and they may qualify for federal student loans, such as the Stafford student loans, even with a less-than-perfect financial history. If students do qualify for one of these government-funded loans, the government will even pay their interest for them, in many cases, while they are still attending school.
If students are interested in applying for a government loan, they will need to go online and fill out a FAFSA, or free application for student aid. When they fill this application out, they need to make sure that they have all of their income information available, such as the previous years income tax forms. If they live with their parents, they will need their parent’s tax information, as well.
There is a deadline to apply for federal loans: typically mid to the end of June for the Fall semester and mid November for the Spring semester. Thus, the earlier students apply for these loans, the better chance they will be approved in time for classes. The processing of government loans usually takes an average of six to eight weeks.
In addition to government-funded student loans, students with less-than-perfect financial histories may qualify for loans from private lenders, as well. Students can find these loans online through various lending institutions rather than through traditional banks and other lending facilities. Although the interest rates on these loans can be quite high, the benefit of getting the money for one’s education is well worth the expense.
Private loans should be a last resort in the case that students do not qualify for federal loans. When searching for suitable private lenders, it is best for students to compare the rates and terms of several before choosing one. In this way, they can find one that they will be able to pay back easily.
In conclusion, for those students, who want to go to college, but who have poor financial histories and do not have the funds themselves, they may want to consider a no-credit loan. A popular no-credit loan is government-funded loans, as they do not perform financial history checks, and the only requirement for these loans is that the students prove their financial need. Another way to fund college educations is to apply for loans from various lenders online. Anybody can find the money they need for college with a poor credit student loan and just a little research and comparisons.