Whenever a student lacks the funds to pay his fees and other dues, the education loans help him. There are two main categories for student loans, one is Federal and the other is Private. Not every student qualifies for the government loan. So remaining students approach towards Private Study loans.
In private educational loans, there is also some criteria but it is less strict than the govt.’s one. Private student loan approval mainly depends on the credit report. There are some other points in getting private student loans approval.
1. Your Credit History
The most dominant point for approval of study loan is your credit score. It should not be at a bad level. No lender wants to be at risk regarding his investment on you. They also want to play safe. So your credit report should be good enough to get you towards approval.
2. Your Parents Credit Report
In getting private student loan, the credit score of your parents also plays a vital role up to some extent. Parents credit report should also be clear for easy approval of your Study Aid.
The role of cosigner also of much importance. You have to decide first if you need a cosigner or not. A reputed cosigner is better for your loan approval. because when original debtor fails to repay, the liability falls on the cosigner. So that would a reasonable personality.
4. Situation under Delinquency
Lender and Borrower should also take some consideration about the delinquency factor. The delinquency rate or The late or non-payment trend is falling from the end of 2009. which is a good sign. Trans-Union is of the view that the number of new private student loans will remain flat throughout most of 2010.
5. Other Debts
You should consider other debts you owned already while applying for new student loan. You should adopt proper precautionary measures for the new loan. It should not make you over-loaded, which is harmful for you and your career.