Guaranteed Student Loan
Guaranteed Student Loan is the loan provided by lending financial institution but guaranteed by the federal government. And the interest rate is bear by the federal government, and paying lender to manage the loan program. There is 1 loan type - Subsidized Stafford Loan also similar to this loan, but the subsidized loan offer directly from education department (federal government) and it's guaranteed default, while this loan is not.
Lending this loan to student will have to bear a risk in the event of default. In order to make lenders agreed to lending this loan, the federal and state governments take on this responsibility, paying out subsidy payments to the lender.
Tips on getting guaranteed loan for education
1) Written explanation - you must properly write out your circumstances regarding your bad credit, specific cause of the negative report. Mismanaging is not a good reason, if you have critical matters such illness or emergency, the lender may sympathetic to the causes of missed payments in the passed. Show to lender that you have aware of the issue have taking steps to correct it. The chances of getting loan will be higher.
2) The government will only give the loan to the student who really need and have economically disadvantaged. You should show you are creditworthy and highlight your disadvantages in your application.
3) For private guaranteed loan. You must apply your loan creatively, using saving account, collateral or hard asset proof to lender, will provide the lender more confident that you are able to repay the loan. If your relative or friends have good credit rating and willing to become your cosigner, your chances of getting the loan will definitely increase.
For more student loan information, please check out Student Loans Guide instead of Guaranteed Student Loan
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