Horrible Credit: Is it Impossible to Get a Private Law School Loan?

[TedEdgennakem]

I have HORRIBLE credit. I'm talking sub-600.

I'm working on getting it better but this won't likely happen before the summer.

My question is: does anyone know FOR SURE what my chances are for private loans? I understand that I'll probably have higher interest rate and that I will have to have a cosigner. That's fine. I just want to know that I can at least get them.

Any thoughts?

[abrovichka]

As long as your cosignor has great credit, you should be able to get the private loans. You'll definitely need a cosigner with good credit.

Also, if you've ever defaulted on student loans, you will likely not be able to secure them, cosigner or not. If student loans play no part in your bad credit, you might be ok.

There are some institutions that won't lend to anyone sub-500 though, so make sure you shop around before applying. You don't want inquiries from lenders dragging down your score even more.

Of course, this all depends on were your borrowing from. First you will definitely get the 18.5k from the federal government. Those are not credit based. Second some schools have lenders they partner with. For example at my school they have what they call a Gate loan. Its up to 8k a year and the minimum score is in the mid 500’s. Beyond that you will need a cosigner and the better your cosigner the lower your rate. Some lenders will only take there credit into account, others look at both, and some only look a t yours. Some have different tiers for loans with cosigners vs loans with outs. Your best bet is to talk to your schools Financial Aid office.

Another option: You can also have a sponsor borrower. sallie mae,accessgroup, and key bank offer this option. this means someone (ANYONE) can borrow the loan for you. so, the loan is for your schooling, but it is another person's name. this maybe helpful if they deny you a cosigner.

And about deferred payments: Just about all student loans have deffered paymetns while in school. The subsidized loans also have deferred interest wereas the nonsubisidized and private loans accure interest while your in school.