Private Student Loans Bad Credit

November 1, 2011

Private Student Loans Bad Credit

IF you are looking for information on private student loans bad credit, we have you covered! Every private student loan is fully credit based, but do not let this get you down and out as there are loopholes in the system! The fact alone can be discouraging right off the bat, but do not let it deter you from attaing your dream of graduating college, you can consider the following options to solve your problem.

Private Student Loans Bad Credit

Private Student Loans Bad Credit Options

First off, you can still get a private student loan with bad credit, but your loan will come with higher interest rates as well as higher origination fees, also known as activation fees that require you have to pay when you first take out the loan. These negative aspects will take place in the event that the loan is actually approved, which in many cases it is not. In order to fix this problem, it is imperative that you:

  • Seek out a cosigner that has a great credit score. Do make your chances of loan acceptance as best as possible, try to get a cosigner that has a credit score that is higher than 700 as scores higher than this show the best rate of success

Now this cosigner doesn’t need to be a parent or gaurdian, or even blood related, but must be willing to stick their neck out as far as monthly payments go being that they assume the responsiblity of paying and loan debt that the student is not able to pay, which if they cannot cover this then it will both affect their credit score as well as pose the possiblity of losing the loan. The great thing about this private studetn loans for bad credit tool is that there is an option to tranfer the loan to the students name later on down the line, usually being around 4 years after the conclusion of college, where the student can now build their own credit score.

Good Private Student Loans Bad Credit Lenders

Now that you know the main overview about the private student loans bad credit topic, you may want to know about good private lenders to use. The list below can give you a start into weighing your options about which lender you ultimately want to use. It also should be known that in order to get the greatest private student loans, there are three things, although these aspects are usually only attained by an applicant with a very high credit score. The rules that you should try to follow which are:

  • Loans that come with no fees.
  • Have a LIBOR (London Inter-Bank Offered Rate) or 2.0 percent or PRIME rate of .50 percent

Sallie Mae Education Trust – First option to consider for private student loans for bad credit is Sallie Mae Education Trust. This option provides its eligible applicants with benefits such as; rates as low as 2.5 percent, up to 30 years for repayment, a 6 month grace period before you have to start paying back debt as well as the benefit of 5000 dollars in coverage due to expenses paid on medical bills.

Citibank – This national bank provides another great resource when it comes to finding a solution for private student loans with bad credit. Benefits of private loans through Citibank include; no origination fees, variable rates that are as low as 2.96 percent, interest dicounts for auto debit, and no payments until school in completed.

Wachovia Education Loans – Offered at interest rates starting as low as 3.4 percent, offers up to 25,000 dollars in yearly borrowing limits, certain discounts for like auto debit among others, and you do not have to pay back the loan until you graduate.

Category: Stuent Loans For Bad Credit

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