You could be wondering if you can get a private student loan with bad credit. Private student loans are suitable for students without federal student loans. Some private student loans require one to have an excellent credit score, while others do not require credit history.
If you have a poor credit score, then you have no option than to go for the private student loans for bad credit or without a credit history. Before deciding to apply for private student loans, it is advisable to first apply for federal student loans.
Unlike federal student loans, private student loans attract a higher interest rate, which varies over time. Also, the loan is not subsidized, and hence the borrower has to take full responsibility in loan repayment. We will show you how to get a private student loan with bad credit. The following are some private student loans you can consider applying for.
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Best Private Student Loan for Bad Credit
Below is a list of loan providers who may approve a loan for you even if you have a bad credit or not credit at all.
Sallie Mae Private Student Loans
Sallie Mae Private Student Loan was initially a federal student loan provider until 2004 when it became a fully-fledged company offering private loans. The company provides private student loans without charging application or origination fees. Most of their loans require co-signers.
Sallie Mae Private Student Loan Review
- Sallie Mae Private Student Loan rates (Sallie Mae APR): The fixed APR ranges between 4.74% and 11.35%, while the variable APR ranges between 2.75% and 10.22%.
- Sallie Mae types of loans: They offer a wide array of loans ranging from undergraduate loans, parent loans, career training loans, medical school loans, dental school loans, MBA student loans, and K-12 loans.
- Sallie Mae Private Student Loan amount: They offer a minimum credit of $1000, while the maximum is the cost of education.
- Sallie Mae Private Student Loan duration: The loan term is between 5 and 15 years.
Ascent Private Student Loan
Ascent Private student loan offers loans to undergraduates and graduates. One advantage of their loan is that you get 1% cashback as a graduation reward. The loan does not attract origination, prepayment, or application fees. When you take a loan with a co-signer, you can repay while still in school or within the six month grace period. Alternatively, you have an option to pay interest only or a fixed fee while you can also defer in your payment. Unfortunately, Ascent does not provide parent loans.
Ascent Private Private Student Loan Review
- Ascent Private Student Loan amount: Their minimum loan is $2,000, while their maximum credit is the total cost of education.
- Ascent Private Student Loan duration: Loans with co-signers have repayment terms of 5, 10 and 15 years while independent borrower loans have repayment terms of 10 or 15 years.
- Ascent Private Student Loan rate: Their loans have both fixed and variable APR. Fixed APR rates range between 4.21% and 13.16%, while the variable APR rate ranges between 3.16% and 11.90%.
MPower Private Student Loan
MPower Private Student Loan offers loans to students studying in US or Canadian schools and are two years to earning a degree. They provide loans to both undergraduate and graduate students. Loans are available for international students and Deferred Action for Childhood Arrivals (DACA). Credit history and co-signer are not needed when applying for a loan.
MPower Private Student Loan Review
- MPower Private Student Loan amount: Their loan limit is a minimum of $2,000 and a maximum of $50,000.
- MPower Private Student Loan rate: Fixed APR ranges from 7.53% to 14.97%.
- MPower Private Student Loan fees: They charge an origination fee of 5%.
- MPower Private Student Loan duration: The loan repayment term is ten years.
How to Select the Best Private Student Loan
To get the best private student loan, compare the interest rates from different lenders such as credit unions and online lenders. Select one with the lowest interest rates. Another factor to consider is whether the loan has a fixed rate or variable rate. A fixed-rate does not change over time, but variable rate may increase as time goes. The repayment options also differ from one lender to another. Make sure to select one that suits your financial strength. Some loans have borrower’s protection, such as deferment and forbearance options. These loans are excellent since they protect the borrower when they are not in a position to repay the loan.
Student Loans with Bad Credit in the US
Getting a private student loan with bad credit can be challenging, but it is possible. Most lenders of private student loans consider credit score before advancing any loan, while there are a number of lenders that specialize in loans for borrowers with bad credit or no credit. If you have bad credit, you may need to apply for a loan with a co-signer or apply for a federal student loan.
Before applying for a loan, compare the interest rates and repayment terms. Make sure to go for the most affordable loan. However, it is important to understand that private student loans typically have higher interest rates and fees than federal student loans. If you have bad credit, you may want to consider federal student loans first, as they are easier to qualify for and offer more borrower protections.
Private Students Loans with Bad Credit FAQ
Can I get a private student loan with bad credit?
You can get a private student loan with bad credit, but it may be more difficult, and you may have to pay higher interest rates. There are lenders that specialize in loans for borrowers with bad credit or no credit.
Can you get a Ssallie Mae loan with bad credit ?
Sallie Mae primarily offers private student loans, and eligibility for these loans is typically based on the borrower's creditworthiness. If you have a bad credit or a poor credit history, you can apply for a student loan with a co-signer.
