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Will I have to pay higher interest rates on student loans if I have bad credit?
Wiki User
∙ 12y ago
Anyone with bad credit will pay higher interest rates on a loan, not just a student loan. The lender charges a higher interest rate which enables the facility to receive more interest quicker in case of default.
Wiki User
∙ 12y ago
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How to get a decent student loan with bad credit but has a cosigner to help?
Government student loans. Some companies also offer contracts to those with bad credit, but the interest is much much higher.
How do you obtain another student loan to supplement your Stafford loan?
Consider obtaining a private loan, also known as an alternative student loan. According to http://www.onesimpleloan.com/private_loans.asp, "Compared to federal student loans, private student loans typically have slightly higher interest rates. However, the interest rates on private student loans are substantially lower than conventional credit products such as personal loans, credit cards and even home equity loans."
Are any private student loans still considered government loans?
No, by definition, private student loans are not government student loans. Federal student loans are guaranteed by the US, govt, and the govt sets the interest rates and determine the policies around loan limits and repayment. Private student loans are provided by banks, credit unions and other financial institutions such as Sallie Mae. Because they are not guaranteed, they are much higher risk to the lenders, so they are typically credit based. This means interest rates are variable, and determined by the borrower's credit history. Because most student's haven't had a change to acquire good credit, having a co-signer with good credit almost always improves the interest rate. Banks don't have any collateral for student loans.
What are the average interest rates for student loans?
Most student loans are interest free when you are still attending college, then increase from there. It really depends on your credit score to what interest rates you qualify for.
Are interest rates on auto loans much higher if you have bad credit?
Interest rates on auto loans are much higher with bad credit compared to an auto loan with good credit. Many times a person with bad credit will receive an interest rate of 18% and up.
Can you tell me about private education loans vs. government education loans?
HUGE difference. Federally Guaranteed student loans have very low interest rates and many benefits attached. Private student loans have much higher interest rates and no benefits.
What are private student loans?
The private student loans are the loans arranged by the student through any of the private banks at a fixed interest rate. To apply to these private student loans you need a cosigner unless your credit rating is too good and you have a source of income.
What are student loans?
The private student loans are the loans arranged by the student through any of the private banks at a fixed interest rate. To apply to these private student loans you need a cosigner unless your credit rating is too good and you have a source of income.
I have poor credit, is it still possible to get personal loans without paying a ton of interest?
Loans, in general, are based on risk. The higher the risk, the higher the interest rate. You'll be able to get a loan, but the rate will be higher than if you had better credit.
Are student loans and auto loans the same on your credit report or would one be better to pay off first?
Always pay off the higher interest loan first, then take whatever payments that you WERE making on that loan and add it to the NEXT higher interest loan and continue the process.
What is the best interest rate for student loans?
The best interest rate for student loans are LIBOR + 2.0% or PRIME - 0.50%, with no fees. These loans will usually only be available to those with a great credit rating.
In what ways are private student loans different from government loans.?
Private student loans usually have higher interest rates and have to be paid in a specific time period. Government loans are more flexible.
