The Parent PLUS loan program is a popular resource designed to help parents put their kids through college. While these loans generally offer low interest rates and flexible payment plans, they do require a credit check. If you’ve filed for bankruptcy assistance, had wages garnished, or gone through a foreclosure, the government will likely deny your application. Fortunately, there are a few ways to help your kids pay for school, even with bad credit.
3 Ways to Help Your Child Pay for College With a Poor Credit Rating
1. Find an Endorser
An endorser agrees to pay back the loan if you default, which gives a lender more confidence. If you have a close friend or family member with good credit, you may still qualify for a Parent PLUS loan if they agree to act as an endorser.
2. Appeal the Decision
When your application is denied, the letter you receive will explain how to file an appeal. If you can prove that your bad credit was caused by extenuating circumstances, the government may reverse its decision and approve your loan.
For instance, if you filed for bankruptcy assistance because of a divorce, you may submit your official decree and financial records along with a letter explaining the situation.
3. Help Your Child Find Financing
While you may not be able to provide funds directly, you can still help your child get the money they need. For instance, you can assist with their own student loan application, which can be confusing for young college students. Grants and scholarships can also be valuable resources, reducing the amount your student will have to borrow.
If your debts are more than you can handle, Greg Dunn, Bankruptcy and Debt Relief Attorney, will help you wipe the slate clean and start over. Since 1996, he’s helped over 12,000 borrowers across Oahu get the bankruptcy assistance they need to reclaim their lives from burdensome debt. Visit his website to start exploring your bankruptcy assistance options, or call (808) 524-4529 to schedule your initial consultation.