Your Questions About How To Get A School Loan With Bad Credit
Lisa asks…
How to get a school loan with bad credit?
Ive been trying to get a school loan with multiple lenders and 2 cosigners all of which were denied. I am 18 and have no credit. Ive done fafsa, but it doesn’t cover allllll of my tuition and housing. I need like $8,000 and I don’t know how to get it. Any suggestions will be greatly appreciated, Thank You.
Joe answers:
Honestly, you probably aren’t going to find many legitimate options. Private loans are unsecured loans, meaning they have no collateral that the bank can sell if you don’t pay them back. This makes them much more risky than a car loan or a mortgage, so they’re even harder to get. In this economy, if you don’t have good credit or a credit-worthy cosigner, your options are pretty limited. Sometimes you can find a local credit union or nonprofit agency that offers “credit-ready” loans for people with no good cosigner, so if you have no credit (not bad credit), you may qualify for it. Most of the time though, you may need to look at transferring to a lower-cost school. You should also look at getting a part-time job or two. Cut back on all of your expenses. Apply for any scholarships or grants you can find. Ask your family for help. If you still are stuck, talk to your school about the possibility of attending part-time to give you more hours to work and make money. It might take you longer, but it would be better than quitting all together.
George asks…
How do I get a school loan with bad credit and a somewhat creditworthy co signer?
I am a college student and I am in desperate need of a student loan to help out with some living expenses. I live on my own and just kicked the ex to the curb because he was a money sucking parasite. (I dont want advice about that situation because I already know how stupid I was) So please, if anyone knows where I can get a student loan with bad credit (cause he helped ruin it) please let me know! Thanks in advance!! 
Joe answers:
FAFSA.–Federal student loans. They dont check credit and cant deny u because of your credit. Go to the dinancial aid department of the college your attending and get paperwork and a FAFSA for to fill out. Or you can do it online www.fafsa.ed.gov
Ruth asks…
How can I get a loan for school with bad credit?
I’m in my early 20′s and have decided I want to go back to school. However,I’ve made some mistakes in my past and have very poor credit. I can’t afford to pay for school out of pocket, I don’t make enough. Hence why I’m going back to school. Does anyone know about alternate funding/loans for someone in my position? Any suggestions/guidance would be appreciated!
Joe answers:
Tracy – I hate to be the bearer of bad news, but this is not a good time to be in your situation. You may need to postpone this commendable goal of yours for a little while and use that time to improve your financial circumstances.
If you’ve been paying any attention to the worldwide financial crisis, you probably know that the banks are at the center of the mess. I don’t want to minimize the complexity of a huge, multi-faceted financial disaster, but at the very heart of the crisis are banks that made risky loans to unqualified borrowers. Applicants were granted loans without the normal, conservative analysis of their apparent ability to repay. Predictability, a lot of the risky loans went bad, and the banks and their investors lost billions and billions of dollars.
Right now, getting any kind of loan is extremely difficult, and getting risky loans is pretty much beyond any reasonable possibility. Unfortunately, you’re going to be looking for a very risky loan – a large dollar loan – without any collateral or security – made to an applicant with a problematic history of repayment, and probably an inadequate income. That’s a toxic combination for banks right now – and it will be for a while to come.
The lenders who were making these kinds of loans until fairly recently were the ones who were burned the most – many of them went bankrupt. The remaining lenders have significantly retrenched their lending practices – they’re only making very safe loans right now – and your kind of loan is not one of those.
If you are determined to begin school right now – you’ll need to rely entirely on federal, state and institutional financial aid (and any personal funds and/or scholarships you might be able to throw in). It IS possible to attend college entirely on federal aid, but you’ll have to be very selective about your school. Depending on your financial situation, you may be able to receive a total of something in the neighborhood of $10,000 in some combination of Pell Grant funds and Stafford loans. The good news about a Stafford loan is that your credit history will not be counted against you – a Stafford loan does not require a credit check.
There certainly are schools that you can attend for $10,000 a year, though I suspect that you’ll need to maintain a part-time job to cover some of your other living expenses. It will be a tough challenge for you, but if you are determined, you really can pull it off. You might consider starting out with weekend or evening classes, or maybe at a local community college. After a year or two, you will have had the opportunity to put together a college transcript that might make you competitive for new scholarship funds – and the lending atmosphere may have improved – and you’ll be farther removed from your bad financial decisions of the past.
Good luck to you – I hope your dream comes true!
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