FAQs About Student Loans and Poor Credit

Do You Qualify for a Loan?

Many college-bound students will find that they need to take out one or more private lender loans to help them complete their education. Scholarships, grants and Federal loans only go so far, and private lenders offer a way for cash strapped students to find the money they need to make college a reality. Unlike Federal students loans, however, private lenders issue loan agreements strictly on the basis of credit history. For many students, this can present a problem.

The majority of college-bound students, particularly those fresh out of high school, will have built up little or no credit history. Worse, they may be stuck with a poor credit report that may stifle their chances of securing the necessary student loans to pay for college. student loan faq

The following are some of the most frequently asked questions concerning private lender loans and students with bad, or nonexistent, credit.

Private lender loans play a key role in helping students fund their college education. However, students should understand that all loans carry a significant amount of risk. Before signing any loan agreement, be sure that you fully understand all of the terms and conditions of the loan, and that you have a plan in place for the full repayment of that loan.