Citigroup, Chase, Sallie Mae and Others Can Help with Bad Credit Student Loans

Having bad credit should not get in the way of going after a higher education. In fact, many students apply for bad credit student loans from private lenders to supplement their Stafford or Perkins student loans. Once federally guaranteed loans have become exhausted for a particular student, it is not unusual for that student to avail themselves of these private venues for school funding.Private lenders willing to fund bad credit student loansMany private lenders, Citigroup, Chase, Sallie Mae and others among them, offer bad credit student loans to help young adults on their way to a degree. Probably the most demanding qualification of these loans is the need for a cosigner. That means that you and your parents would have to be partners in taking out the loan. Another responsible adult interested in your future could fill the bill as well. Of course, as a cosigner, he or she – or parents – would have to understand that the responsibility for the loan is theirs should you default for any reason.Is a cosigner always necessary?Perhaps you have repaid some of the installments on your student loan by yourself. At that point you may be allowed the authority to branch away from your cosigner. This is known as a co-borrower release. By taking on such a release, you ensure that the responsibility for repayment is all yours. Also, paving the way for future loans, you would no longer be saddled with the credit history of the cosigner. At that point, you and your cosigner become separate entities when it comes to credit histories. You would be in the loan driver seat, so to speak.Sometimes a cosigner may actually be a detrimentWhen applying for a bad credit student loan, you might want to check up on the credit history of the cosigner. Should the bank require a cosigner, you should be sure the cosigner has enough of a good credit history to not jeopardize the loan. You may be denied a student loan that you could have won had you stood alone.Some lenders will grant a student loan without a cosignerConventional wisdom says that a cosigner is necessary to qualify for a bad credit student loan. This is not always the case. With careful research, you could very well find a financial institution willing to grant education funds without a cosigner or co-borrower. As stated above, should you require a cosigner, be sure that the person has a good enough credit history so as not the jeopardize the granting of the loan.Diligent research is necessary to find the best rates and conditionsShould you decide to take out a bad credit student loan, you will not only have to do research to discover those which do not require a cosigner, but also to find the best interest rates and terms of repayment. As with any loan product, interest rates, fees, and repayment terms can vary widely from lender to lender. Should you find an institution offering what you consider good conditions, chances are you will find better if you just look a little further. Be persistent in your search. You should not let the chance at a higher education slip you by just because you think you cannot get funding.