How to Get a School Loan with Bad Credit

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First and foremost, FILE YOUR FAFSA! Many people overlook it because they believe their household makes too much money or that FAFSA is too much of a hassle. But it can help you out a lot, especially if you’re going to an expensive school or have multiple family members enrolled in school. Since FAFSA doesn’t look at your credit score, just your income, you have a good chance of being eligible for loans (and sometimes scholarships).
If you still need money beyond what FAFSA will give you, look for reputable loan companies that look at things beyond credit. A great place that I’ve heard nothing but good things about from friends is MyRichUncle. Their loans consider your academic standing, major, and grades more than your credit history. Because of this, you have a great chance at getting a loan if you truly want to stay in school. While these companies are rare, they are out there so see if you can find one that works for you.
Ah, the dreaded cosigner. For some, regardless of where you get your loan, you’re going to need a cosigner, especially if you have bad credit. While this can be hard to do it’s worth trying to find someone willing to take the plunge. If they trust that you’ll work hard to pay off the loan they’ll be likely to help you take it out. Even though it looks painful, try finding someone who would be willing to cosign for you so that those loans are open to you.
Apply and wait. In the end, you really have no clue if you’ll get a loan or not until you apply. Make sure that the company you apply for doesn’t make you sign in blood saying you’ll definitely take out the loan if you’re approved. Doing so can sometimes lead to fluctuating interest rates and high payments. Read the fine print. If you’re not comfortable with the way the loan company lays out your payment plan than don’t bother with them. Remember that this is YOUR investment more than it is theirs because YOU’RE the one who has to pay it back for the next ten years. Shop smart and you’ll be able to fund your education without regrets…and build that credit score!


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