Borrowing money is always complex and difficult, particularly when it comes to student loans. Most college students are concentrating on their classes and have (at best) a low-paying part-time job. Since they’re are young, they usually don’t have much of a credit history. For this reason, people wanting student loans often find that private lenders insist on a cosigner. If you don’t have someone to cosign your loan, then you have to consider other options.
The Easiest Approach
However, while the government makes it easy for you to get money, you can’t borrow any amount you like. Provided by the Department of Education, these loan programs place limits on how much you can borrow. Once you butt against that limit, that’s it. If you’re interested in these loans, contact your college’s financial aid office. There’s a good deal of paperwork to fill out, and they can walk you through it.
Private Student Loans
Keep in mind that lenders are going to want evidence that you will have the ability to repay the loan, meaning that you will have a good job with sufficient income to make the payments. You’ll also have to have a solid credit history. If what little credit history you have reveals late payments and other problems, you can pretty much forget about a private loan. It’s also important to know that applying for loans over and over again at different banks can actually damage your credit scores.
Improve Your Credit
Responsible borrowing is one of the best ways to build your credit history. If you are not able to borrow what you need for school right away, try to get a credit card or a small loan. Make sure that your payments are always on time and in full. If you have a part-time job, deposit a few hundred dollars in a credit union and ask them about getting a secured credit card. All of these things can help you establish good credit so you can try to get a student loan later.