A majority of college students rely heavily on some form of student loans, scholarships, or government grants to help pay for their education. This is in large part due to the ever-increasing cost of college. The average graduating college senior has around $20,000 in debt. Unfortunately, the higher cost of higher education will not slow down anytime soon. In fact, many analysts believe college tuition will continue to increase at an expeditious rate over the next 10 years.This means finding a quality college loan, scholarship, or government grant is essential.

First, let’s talk about loans. Acquiring a college loan can be tricky if you don’t do your homework. A lack of understanding and familiarity with the terms of a loan could wind up costing you thousands of dollars, especially if you get stuck with an extremely high interest rate. Fortunately, there are a myriad of college loan options. All that’s necessary is for you to do some simple research in order to find the best loan for you. A new loan program that’s becoming increasingly popular is the “co-signer” loan. You’ve probably seen advertisements on television featuring companies such as Astrive. They claim to guarantee you $30,000 dollars in less than a week. However, what you must keep in mind is that a co-signer is required.

What is a co-signer? Basically, a co-signer is insurance in case you default on your loan. If you miss a payment or are regularly late with payments, the company that provided the loan can go after the co-signer for compensation and re-payment. This provides an added layer of security to the company.

Obviously, the biggest obstacle with this type of loan is finding a quality co-signer. Many students will try to persuade a parent to co-sign, and if you have willing parental units, I suggest utilizing this strategy. Of course, if you do not have parents willing to take the financial risk of you having a misstep with your loan, or you just do not have parents (due to death or other circumstances) then othero ptions must be explored.

Another option is the standard loan from either a bank or a loan agency. This has been the tried and true method to acquire a college loan. But keep in mind, there are certain things you must be cognizant of before signing on the dotted line. First and foremost, be very clear on the interest rate you’ll be charged. The average interest rate for subsidized student loans is currently 6.8 percent. So, if it is gratuitously over this mark, lookels ewhere. But remember that various factors go into computing your interest rate, most notably your credit history. So, if you have poor credit or no credit, there is a good chance you will have to pay higher interest on a college loan.

Now, let’s talk about scholarships and grants. Scholarships and grants are the much-preferred method to deal with college tuition since they require no repayment. Of course, to obtain a scholarship you must display some form of academic accomplishment (e.g. high GPA) or have a unique ability, talent, and/or background.

Obtaining a grant also requires some sort of unique ability since most grants require you to complete a project or major assignment in return for college funds. However, there are grants available that do not require the completion of a project, but rather are available to minorities and those with a unique background or family history (similar to scholarships).

By: Patrick Austin

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If a student carries a bad credit tag, the lenders are at risk in providing finance. However, bad credit student loans can be availed without many enquiries about history of payments that the borrower made in the past. But you must take your existing financial position and circumstances to qualify for these loans.

To start the process of getting the loan, you should file an online Free Application for Federal Student Aid. This application is required to assess your financial situation so that your eligibility for a government aid can be determined.

If it is found that you are financial weak, unable to afford the high expenses of collage education, then it simply means that you are eligible for federal Stafford loan, which do not take into account bad credit in approving the loan. These loans are of lower interest rate. The student is allowed to make the repayment six months after he or she has finished the collage studies.

The Stafford loans are categorized under subsidies or unsubsidized loans. The federal government will pay the interest on the subsidized loans, while the interest will be paid by the student in case of taking out unsubsidized loans.

If you do not qualify for the Stafford Loans, then your parents can take PLUS loans on your behalf. However, the parent must have a better credit rating than the student. In the event of the parent too having bad credit, the co-signer can take the loan for the student. The repayment of the loan will be made by the co-signer.

In case the students do not find these loans for any reason, or they want greater funding for costly courses, like law or medicine, then they can take bad credit student loans from private lenders. Such lenders will provide the loan against the borrower’s home or any valued asset. These loans can also be availed without collateral as unsecured loans. But, interest rate will go higher.

You should take out these loans in accordance to your circumstances and requirements. Make a good search for suitable deal, if you intend to take the loan from private lenders. Make timely repayments for improving your rating.

By: John R Marshall

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jlofan2006 asked:


Ok i have completed the fasfa and everything is paid for, but i need a student loan for some personal needs and i dont have a co-signer at all and i am unemployed at the moment and i talked 2 my financial aide guy and he said i can only get 3500 a year in student loans… Is there a place out there where i can get a student loan with out a co-signer?!?!?

hopefulxxmommy asked:


How many stafford loans can i apply for at once and can i have more than one as long as they are from different lenders? I’m short on tuition for my next term and I have no co-signer for a student loan

Zac B asked:


My parents filed for bankruptcy and I am worried how I will pay for college until I learned about PLUS loans. What I am wondering is if anyone is in a similar situation and could their parents get any loans for them without a co signer. thanks a lot

rbcny9 asked:


What does a student loan company like Stafford do to co-signers? Do they get notified of the loan if someone takes one out and uses them as a co-signer but pays it back right away? If so, how? I joined the army so I get loan repayment.

NB asked:


I have horrible credit. I have a private student loan that someone co-signed for me. Her husband saw it on her credit report and wants it off now. So I need to find another lender that will deal with bad credit and get another loan to replace this one and it has to be done quickly. I’ve already tried to consolidate all my private loans but it’s a no go without a co-signer. So it’s just this one loan that I need to get changed. Is there a company that deals with bad credit and private student loan consolidation?
I have already used all my federal loans. Because of my husbands income I don’t qualify for alot. So I have to use private loans also.