Bills Logo

FAFSA Loan Consolidation

image alt text
Mark Cappel
UpdatedDec 7, 2022
My FAFSA Loans won't cover my student loan costs? How can I get a student loan for the difference?

My credit is ok for my age but its not good enough. My parents credit is not good and they are the only co-signers i have. Ive already completed the fafsa but the money i received is still not enough. How can i get a loan of about 10,000 to cover the rest of my expenses when i dont have anyone else to co-sign? If you have any suggestions i would truly appreciate it. Thank You.

My first recommendation is that you go sit down with a financial aid advisor at your school, explain your problem, and find out what he or she recommends. When I was in school, I found myself in a similar situation, and found my school's financial aid advisor to possess a wealth of information about available loans, grants, and scholarships. Your advisor should be able to direct you to private lenders willing to loan money to students with poor credit, including those without co-signors.

Given you already completed the FAFSA and need additional funds, you will probably require private student loans to bridge the gap between the FAFSA funds and your actual tuition expenses. Private student loan financiers know the majority of students have not yet established a meaningful credit profile, so many lenders do not focus on students' credit scores when making lending decisions. However, these lenders tend to charge rather high interest rates on their loans, especially compared to federally insured loans, so you should work to repay any private student loans you obtain as soon as possible after graduation. Again, I recommend that you speak with your school's financial aid advisors to find out more about private student loans.

A possible alternative loan resource you may want to explore are peer-to-peer loans from Prosper or Lending Club. Both are Web sites that put private lenders in contact with private borrowers. A private lender may be more willing extend you a loan than a traditional bank.

For more information about student loans, I encourage you to visit the Bills.com student loans page.

Best of luck in finding a loan to help finance your education. I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

Dealing with debt

Mortgages, credit cards, student loans, personal loans, and auto loans are common types of debts. According to the NY Federal Reserve total household debt as of Q2 2022 was $16.15 trillion. Housing debt totaled $11.71 trillion and non-housing debt was $4.45 trillion.

According to data gathered by Urban.org from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1.739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 10% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.

The amount of debt and debt in collections vary by state. For example, in Vermont, 16% have any kind of debt in collections and the median debt in collections is $1501. Medical debt is common and 5% have that in collections. The median medical debt in collections is $482.

To maintain an excellent credit score it is vital to make timely payments. However, there are many circumstances that lead to late payments or debt in collections. The good news is that there are a lot of ways to deal with debt including debt consolidation and debt relief solutions.

SHOW SOURCEarrow-down