Bad credit student loans are often available by having a qualified co-signer.
Students who have bad credit may have difficulty obtaining a loan for college unless they have a qualified co-signer who is willing to sign on the loan with them. If the student does get a loan without using a co-signer, the interest rate may be significantly higher than a standard student loan rate. Asking a co-signer with a solid credit history to sign on the loan is the most logical way for a student to finance a college education at a reasonable rate of interest.
Instructions
1. Obtain a student loan by having a relative co-sign the application. Explain to your relative why you need a co-signer and how you intend to repair your bad credit. Let him know that most lenders will release a co-signer from a student loan once a certain number of payments are made on time. Find out this information from the lender you contact so you can let him know the exact number of payments it takes to receive a release.
2. Contact a student loan lender and ask to speak with a loan officer. Tell her you want to apply for a student loan but you have past credit problems that will show on your credit report. Let the loan officer know that you have a co-signer who is willing to apply with you and direct her to mail you a student loan application package.
3. Prepare a letter for the loan officer explaining the reasons for your past credit problems. List each creditor separately and specify why you did not pay on time. If you are in the process of repairing your bad credit with your creditors, describe the details in the letter and include how long it will take for your accounts to be brought up-to-date.
4. Complete the application once you receive the package and have your co-signer fill out the joint section. Attach the letter explaining your bad credit as well as any other information the loan officer requires, such as a W-2 form from you and your co-signer. Mail the application back to the loan officer.
5. Call the loan officer if you do not hear anything within one week. The loan officer may inquire about your past credit problems, but do not be defensive or evasive. Reiterate what you put in the letter and only go into further detail if the loan officer asks for more information.
6. Find out the terms of the loan including the interest rate, minimum payment and when the first payment is due once you graduate from college, if the loan officer approves the application. Pass this information on to your co-signer.
Tags: loan officer, your credit, credit problems, past credit, past credit problems