Are you ready to take out a student loan?
Updated on July 31, 2020
If you are considering going to college, you may be wondering if you are ready to take out a student loan without a cosigner. The answer to that question depends on two key variables, which are your income and your credit score. Here’s what you need to know:
Interest rates are currently low, but credit requirements tend to be stricter
While interest rates on student loans are low due to the pandemic, lenders have tightened up their requirements for borrowers. This means that you’ll need to have a higher credit score than usual in order to successfully obtain a student loan. Also, many lenders are more stringent when it comes to income requirements.
It’s important to consider your anticipated income after graduation
It’s important to have an estimate for the amount of money that you’re likely to earn after you graduate college. This will prevent you from getting into a situation where you’re stuck with a large amount of debt from student loans with no way of paying it. If you are taking out student loans, it’s essential to make sure that you choose a degree that’s likely to lead to a well-paid career after graduation.
If you aren’t ready to take out a student loan yet, take steps to improve your credit score
If you don’t feel that you’re ready to take out a student loan, that doesn’t mean you can’t prepare for it. Not only can boosting your credit score make it easier to qualify for student loans, but it can also allow you to get one that features a lower interest rate. You can improve your credit score by making payments on credit cards and certain types of bills that require regular payments.
Compare different lenders
Different lenders have different requirements for people who are interested in taking out a student loan. Not only does each lender have their own credit requirements, but different lenders have their own policies regarding income requirements. Also, it’s important to keep in mind that the amount that you’re borrowing will also factor into whether or not you will qualify for a student loan.
Need more help when it comes to working out whether you’re ready for a student loan? Speak to the StudentLoanify team today.