There are a variety of places that you can turn to for student loans and many of them don’t care about your credit rating. Many lending institutions and government agencies provide student loans for no credit or low credit qualifying individuals. Don’t let low credit scores or the lack of credit history deter you from getting the money you need for college.
Once you’ve been accepted to and have selected to attend the college of your choice (and hopefully the college of your dreams), you need to get moving on financial aid and students loans quickly. Each year, millions of dollars are loaned out by the federal government and private financial institutions for post secondary education and related expenses. If you’ve never had a car payment, rental agreement or department store credit card, getting a student loan is an important step in your financial future.
There are several major types of student loans available. Stafford loans are fixed rate federal loans that are available to students attending college at least 50% of the time and your school must participate in the Federal Family Education Loan Program. Once you are approved for a Stafford Loan, you will be notified and the school will receive funds directly from the Stafford Loan Program to cover your tuition and fees. If there is any additional money left over, your school will either credit your account or pay you what is left over. Typically, Stafford loans are fairly easy to get, provided you have no outstanding student loans in default.
Perkins Loans can be secured in addition to Stafford Loans. Perkins Loans are need based loans that help students cover the costs of their post secondary education. These loans are given to those individuals that can prove they are financially needy. While neither Stafford nor Perkins Loans have high interest rates, the fact remains true that they both must be repaid. If you wish to establish good credit for yourself, you’ll need to make sure that you adhere to all of the stipulations in your loan agreement.
The other alternatives for young students embarking on their college career in need of a student loan involve a cosigner; usually a parent or close family member.
If you apply for a personal loan and the bank requires you to get a cosigner, don’t worry, you can still work on building your credit history and most importantly, you’ll be able to pay for your college expenses. Money for college is yours for the borrowing; you just need to know where to look!