What to Do If Your Non government Student Loan Application Is Denied

If your non-government student loan application is denied, the first thing you should do is to ask the lender why. You may have forgotten to completely fill out the application form or the documents you submitted were incomplete. After you have ascertained the lender’s reasons for rejection, find out if you can re-apply and if there is a waiting period before you can apply again.


Private lenders primarily base their decision on your credit rating. If the reason for rejection is due to something on your credit history, you should check if an inaccurate entry has been made. A copy of your credit record can be obtained from your local credit bureau.

If there is nothing to dispute in your credit record, and your credit score is in fact too low, which led to your loan application being denied, you may ask for reconsideration. Send them a letter or ask for an appointment so that you can explain your situation. Lenders may reconsider, but some conditions may be imposed. They may require you to get a co-signer. The co-signer will be required to have a good credit rating.

Another condition will be a higher interest rate. You will have to think long and hard on this before you push through. You may get the money you need now, but the higher interest will sink you further into debt later on.

If these options don’t seem favorable to you, widen your search for funding other than loans. Scholarships and grants are a start. If you think that your grades might not qualify you, there are some scholarships and grants that are awarded based on financial need instead of just scholastic achievement.

Check the financial aid office of your school for institutions and foundations that offer these scholarships. There are also corporate-sponsored scholarships being offered.

You may also consider working while studying. While this will pose a challenge in terms of managing your schedule, you will be able to sustain your education without being in debt or beholden to anyone. Look around in the vicinity of your college or university for student-friendly employers.

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