How to Find a School Loan With Bad Credit & No Co-Signer
Having bad credit and no co-signer make it tough to get most types of loans. Luckily, there are student loan programs that make it possible to borrow money for school without a credit check. These are primarily federal programs, but there are also state and private monies available.
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Instructions
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Determine your need. You can determine how much you'll need for school by completing the Free Application for Federal Student Aid (FAFSA) application online. This is also the first requirement for obtaining any federal student loans. The FAFSA determines your need based on your level of income and assets, your expected parental contribution and the cost of your educational institution.
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Consult with the college's financial aid department. The financial aid department will be able to provide you with information about their own scholarship or grant programs. You may be able to reduce your financial need by qualifying for scholarships or grants available through your school.
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Apply for a Stafford loan. Once you have a very definite picture of how much money you need to borrow, you can apply directly with any credit lender that provide federal Stafford loans (your school can put you in contact with preferred lenders). Your FAFSA application will be used to determine your eligibility. The Stafford loan is designed for the most needy students. The amount of the award varies each year, but is usually several thousands of dollars.
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Apply for a Perkins Loan. If the Stafford loan won't cover all your financial need, you can also apply for a federal Perkins loan. This is a smaller loan than the Stafford, usually between $1,000 and $4,000 depending on your eligibility, but has a longer repayment period. The Perkins loan is awarded on a first-come-first-served basis from a limited fund, so applying early is essential.
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Tips & Warnings
The new FAFSA application becomes available each year on Jan. 1. Applying as early as possible increases your chances of obtaining federal student aid. The Stafford loan has subsidized and unsubsidized components. On a subsidized loan, no interest is charged while you remain actively enrolled in classes.
Beware of private lenders that offer loans with no credit check. These usually come at a very high rate of interest. Unlike most other forms of debt, student loan debt cannot be easily discharged in bankruptcy. Only borrow what you absolutely need.
