If you are already working as a registered nurse, saddled with student loans that you are repaying, the Federal Government has issued a standing offer that might lighten your load. In exchange for a two-year commitment to work in a critical shortage area, the Nursing Education Loan Repayment Program will pay 60% of your outstanding student loan balance. If you agree to continue employment for an optional third year, Uncle Sam will pick up the tab for an additional 25% of your nursing school loan debt.
Similar arrangements exist for teachers, like the Teacher Loan Forgiveness Program and the Teacher Cancellation for Perkins Loans Program. Each rewards teachers for serving low-income students, by paying or forgiving education loan debt.
Private Student Loans: Finding a Co-Signer
If your goverment-sponsored financial aid doesn’t cover your college funding needs, it might be time to explore your options for alternative or private student loans. Private loans will not be issued without credit checks, so to tap these resources, you’ll need to find a credit-worthy co-signer.
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How to Find a Co-Signor
A co-signer is someone willing to act as your responsible co-borrower. When someone lends their positive credit rating to your educational cause, you are both equally responsible for repaying the loan. The lender doesn’t care who makes the payments, but if you default on the loan, your co-signer’s credit will be negatively impacted.
A cosigner should have a high credit score that offsets your limited credit history, and be fully aware of the ramifications of signing. In fact, before any funds are distributed, cosigners are required to sign a document acknowledging that they know exactly what they are getting into.
At times, cosigners are released from loans, once a certain number of on-time payments have been made. This good faith gesture is appealing for the helpful parties who enable your loan, because it removes them from the debt and leaves them in good-standing with creditors.
- Career Training Loan through Sallie Mae this is a good example of an alternative loan that offers attractive features for borrowers with no credit or less than perfect credit provided a cosigner is present.
Wherever your student loans originate, it is imperative that you pay them back on schedule. Your limited credit history is bolstered significantly when you successfully manage your student debt. This is a valuable opportunity to establish a positive track record of on-time payments, whether you have a cosigner or not.
If your student loan repayment is even slightly difficult to manage, tackle the issue with your lender before it becomes a problem. Consolidating your student loans might place you on a more realistic repayment schedule; one that does not lead to late payments or default.
Federal Loan Consolidation
Federal student loan consolidation is available without a credit check to anyone with multiple federal student loans. In some cases you may be able to cut your monthly payment in half by extending your repayment schedule. Federal Direct Consolidation Loans place all your student debt under a single repayment umbrella, so only one monthly payment is required.
Private Loan Consolidation
Loan consolidation is available for your private student loans too. Lenders do not want to see you default on your student loans, so they offer competitive loan consolidation options sometimes without credit checks.
To determine whether or not you are a good candidate for loan consolidation, take our simple self-assessment quiz and find out right now. Whether you consolidate, or adhere to the original repayment terms of your student loans, it is important to manage your debt responsibly.
Special low-interest no credit-check loans for nurses and teachers come straight from the federal government and state-based sources. For example, the Health Resources and Services Administration issues low-interest loans to nursing students who demonstrate financial need. The program is particularly appealing, because it offers aid at all degree levels: associate’s, bachelor’s and graduate’s.
