FAQs About Student Loans and Poor Credit
Do You Qualify for a Loan?
Sallie Mae, Citibank, Wells Fargo, and Bank of America are major sellers of student education loans. Below is an example of how a conversation would go given the questions that we all are asking. I personally called these companies, but cannot represent verbatim what was said between me and the customer service representative. I will however give you a summarization of each conversation. The 'Q' is me asking the questions over the phone, and the 'A' is the representative helping me.
Q: If I have bad credit, are there any special programs for me?
A: Any lending company usually factors the same criteria as the next, and usually no company finds it financially viable to lend money to someone with bad credit.
Q: So if I have bad credit, I'm going to have trouble getting a student loan, right?
A: We advise you to first apply yourself. If the first application does not go through, then we offer advice on getting a cosigner. A worthy cosigner will help greatly with your chances of attaining a student loan.
Q: It seems like a student loan is like any other loan when it comes to credit history and acceptance. Are there any programs for people who want to further their careers and acquire college loans with a history of bad credit?
A: Unfortunately, private lenders treat student loans the same as any other type of loan. If your credit is bad, then you are unlikely to receive a loan. The federal government more often gives loans to students with bad credit since the government is not run like a business as banks are.
Q: So the federal government gives more freely than alternative lenders?
A: Actually, yes. The economic factors indicate that a privately held company must consider profit for its survival. The federal government is not run like a company. The benefits of the federal funding are available because the country of the United States will benefit from more students attending college. The government is less interested in making a profit than making the country a leader in academics and economic factors.
Q: How can your company help in getting my college student loan approved?
A: We can only go so far. The Federal Stafford Loans are the recommended first options. After that, private banks are less than likely to approve a loan if you have a low credit rating, just as they would normally with any other type of loan. Always apply for federal funding first.
Q: What should I choose your company over another?
A: It depends on your unique financial situation. There are many lenders in the marketplace and there are a few defining factors. Benefits and customer service rank in the top.
- All loan companies are competing for your money when you borrow for college. Each bank will have different loan, repayment, and interest options. To attain the most cost effective loan, you must be aware of your credit situation and you income level.
- Stafford Loans are a life-saver for people with bad credit. Please use this federal opportunity to gain an education that benefits yourself and your community.