If you want to apply for federal student loans, like the Subsidized Stafford Loan or Federal Perkins Loan, then you don’t need any credit. But if you want to get a private loan from a bank then either you need good credit or have to get a cosigner with good credit to cosign for you.

You should always try to get a federal loan over a private loan because for some of them, the government will pay your interest as long as you are enrolled in school.

The only problem with the government’s lending programs is that they have annual borrowing caps. If you choose a school that charges far more than you can afford on your own (that’s not really a good choice, but it’s what an awful lot of students do), you may well find that government lending is not sufficient to pay all of your bills.

Then you must turn to alternative sources of aid – and one of those is the private (which simply means non-government) loan.

Private educational loans are notoriously difficult to qualify for. Almost all student borrowers will need a cosigner in order to be approved for a private loan.

Why? Because the student applicants are asking for a large sum of money, and they have nothing to offer in the way of credit references or income.

I wouldn’t lend you $40,000 because I don’t you – and a bank won’t lend you $40,000 either – unless they can get to know you by checking your credit history. These are your references from other lenders – if you don’t have them – you’re a stranger to the bank. It’s difficult for a teenager to have sufficient credit history to satisfy a lender.

You’re quite right to completely reject the idea of paying for an education with a credit card. The best possible credit card rates are much higher than what you’ll pay on a legitimate educational loan, particularly the Stafford and Perkins loans, which have rates between 5 and 6.8 percent. No one should be funding a college education on a credit card – that’s financial suicide.

Start with the government’s lending program – if you’re already receiving a good deal of aid, you may find that you’ll be able to make up all of the rest with your own personal contribution and some limited borrowing from the Stafford loan program.

Spend a few minutes with the booklet that I’m linking to below. This Department of Education publication called Funding Education Beyond High School: The Guide to Federal Student Aid explains the government’s aid programs, and other forms of aid, too. (including private loans).

I hope this helps you – good luck with that degree!