How To Get a Student Loan with Bad Credit

Bad credit can wreak havoc on your life and trying to get a student loan with bad credit takes research and patience. Financial aid is the first place to start because completing the Federal Application for Student Aid (FAFSA) is a requirement for getting a Stafford student loan. The Stafford Student Loan is a loan that you can get with bad credit, because seeking a degree in school is basically the only requirement to obtain it, aside from maintaining a 2.0 GPA or higher.

Bad credit student loans are difficult to obtain from a direct lender without a cosigner, or someone who can guarantee the loan in the event that you default. The important issue here is that while bad credit does not prevent you from getting the Stafford Loan, you have to be careful or you will acquire a serious student loan debt when you are finished with school and you are obligated to pay it back with interest. It adds up quickly.

Getting a student loan with bad credit is relatively simple if you do your research. Here are a few steps you can follow:

1. Speak with the Financial Aid department to inquire about how to get a student loan.
2. Apply for the FAFSA and wait for your SAR (Student Aid Report)
3. Register for your classes for the upcoming semester. To get a student loan with bad credit, you must be seeking a degree. If you have not selected a major, it is best to just pick one and begin with core curriculum classes until you decide, then you can change your major. Complete the Student Loan Application and submit it to the Financial Aid department
4. You will need to select a preferred lender to get the student loan from and the best practice is to remain with the same lender for all of your student loans for ease of consolidation if necessary.
5. Once the application is approved, you will be required to take a student loan entrance quiz and sign a Master Promissory Note that outlines all the terms and conditions of getting a student loan with bad credit.
6. When your classes begin, you will receive an "Award Letter" that will tell you the amount of financial aid (grants and student loans) that you will be receiving. Disbursement of funds is usually after the first add/drop period to ensure you are not just going to borrow the student loan or get the grant money and drop out of school.

Getting a student loan with bad credit is not as difficult as one might think, but you must be willing to do the research and the legwork involved. It definitely relieves the financial stress associated with college.