Private student loan plays an important role in bridging the gap between the actual cost of education and educational grant provided by the government. It could turn out to be a nightmare for those who have bad credit score.
Although it seems impossible for getting speedy loans at ease but there are ways which help you out to get them without worrying much about your credit report.
Lenders expect guarantee before they lend an amount to the needy. But if your credit history is good you have a better chance in spite of present credit problems. Several banks and universities are offering such services so that students with bad credit history avail this opportunity.
Drawbacks Of A Bad Credit Report: Higher interest rates and refusals from a lender.
But there is plethora of loan options for student with bad credit history.
Credit repair: In case of denial of the loan a student can visit certain loan providers for credit counseling for loans. It is like nonprofit business for them.
Subsidized and un-subsidized student loans: Unlike unsubsidized loans, based on the economic need many universities and schools provide subsidized loans on which government pays interest relaxing students from their credit worthiness. These loans are created by the combination of government and college funds.
Consolidation: This is ideal for those who are looking for flexible repayment as it defers loan payment till the child graduates.
Grants and scholarships: State government’s education fund is another option if a student fulfill s the eligibility criteria.
A credit worthy co-signer: An approval of a co-signer with a healthy credit history is another possibility of getting loans at low interest rate.
Non-credit based loans: Fast and easy loan for those eligible students who are studying subject like health science.
These options ensures accessibility of quality education to those students who show bad credit history and need to escalate down education cost however it is always good to maintain a clean credit report.