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Financing with Bad Credit – How to Qualify for College Loans through FAFSA?

Financing with bad credit is not a big problem, especially when it comes to getting college loans. Considering the very fact, education costs are skyrocketing with every passing year, it has really become very difficult for people to finance education on their own; after all, most of us have very limited monthly income and we have to look after other expenses as well. When your parents cannot afford the high cost of college tuition and when you do not even qualify for any grant or scholarship, college loan is the only alternative left for you. But, even if you are studying in a college, the lenders are going to check your . However, a bad FICO score is not going to stop you from obtaining education. Following are some of the steps that you can follow in order to qualify for college loans through FAFSA even if you have a less-than-perfect credit score.

Eligibility Requirements

Unlike what many people believe, bad credit does not disqualify you from Federal Application for Federal Student Aid (FAFSA) program. As long as there is no refund due on you on a federal grant and you are not a defaulter on a current federal student loan, you can easily qualify for these programs.

Filling out a FAFSA

The FAFSA program has been designed by the US government with an objective to help those who are looking for options on financing with bad credit for their college education. Make sure you follow all instructions thoroughly while you are filling out this application. If you are an independent student, you will have to provide details of the previous year’s tax return. Students who are dependent on their parents are asked to provide information about their parent’s tax return. If your dependency status is not clear, you can get help from the Dependency Status Worksheet provided by FAFSA.

Submit Your Application

If you are submitting your application online through the official website of FAFSA, your application will automatically be sent to the college of your choice (that you mentioned in the application). In order to verify if your college has received that application, you can contact the Financial Aid office of your college.

What if the Amount of the Aid is not sufficient?

Though your application is very much likely to be approved, you may not receive as much amount of aid as you actually need. So, it is important to follow up with your college in order to find out which type of loan you have been approved for and how much amount of aid you are going to receive. There can be different types of loans that you might be offered, such as Stafford unsubsidized loan, Stafford subsidized loan, and Perkins loan. If the amount of the aid is not sufficient, you will have to look out for options with private student loans.

The FAFSA approval will make it easy for you to qualify for low rate private . Overall, financing with bad credit for college education should not be a big problem if know where to look out for.

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One Response to “Financing with Bad Credit – How to Qualify for College Loans through FAFSA?”

  1. Dennis says:

    Higher education costs really high, it seems to be very difficult to arrange finance for higher studies on their own. Getting a college loan with bad credit through federal application for federal student is not really a tough task to achieve. If you are not dependent upon your parents, you can show yours tax return otherwise your parent’s tax return will be needed. You can qualify for the loan if you don’t have any outstanding dues on a federal student loan because the successful repayment is very important for getting any further loan in future. Dependency status can also be checked by the specific worksheet given by FAFSA. If you fulfill all the requirements on line and your application will be forwarded to the college to which you have write down in the application. As mentioned in the article, you can contact the financial aid office to know the status of your application. One more possibility is there that the amount you will be getting from this aid will not be sufficient for you. In this case you have to go for getting any other student loan also. So, you can get the loan through FAFSA; get ready for study more and more.

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