Bad Credit Student Loans
For individuals who would like to get a college education, the cost of tuition can often make or break their decision. Without financial assistance, an education of this type could be way out of reach for quite a few people. If you have bad credit, the process of finding aid can be tricky, but getting a college education is still within reach.
Lots of people ask me if they will need to improve their credit score before they apply for student loans. I almost always tell them that this won't be necessary. The government provides several different types of loans that help people that have bad credit.
There are loans available based on need and there are also loans issued even if there is not a financial need. Most of these loans are backed or issued by the government. If you can prove a financial need, you may be able to qualify for a Federal Stafford loan or Perkins loan. The Stafford loan issued based on financial need is a subsidized loan. With this loan, the government pays the interest on the loan while you are in school and for the first six months after you graduate from college.
If you are a person that has a lot of need for financial assistance, you may be able to qualify for Pell grants and/or Perkins loans. These types of financial assistance are available for people that have bad credit and need to pay for education. Credit actually isn't part of the process of applying for these loans so go ahead no matter what type of credit you have.
With Pell grants, you aren't asked to repay any of the money that you receive. Eligibility for these grants is based solely on the need of the individual. Usually people try to get Pell grants first, and then take out loans as it's necessary.
If you aren't able to qualify for the federal subsidized loan programs, there are still some options out there for you. Take a look at unsubsidized Stafford loans, because they are probably still available to you, even if you have bad credit.
With this type of loan, the government doesn't pay the interest for you, so you will have to start making payments right after you take out the loan. However, interest rates are quite low on these loans so most people can handle the payments without too much trouble.
Lots of people ask me if they will need to improve their credit score before they apply for student loans. I almost always tell them that this won't be necessary. The government provides several different types of loans that help people that have bad credit.
There are loans available based on need and there are also loans issued even if there is not a financial need. Most of these loans are backed or issued by the government. If you can prove a financial need, you may be able to qualify for a Federal Stafford loan or Perkins loan. The Stafford loan issued based on financial need is a subsidized loan. With this loan, the government pays the interest on the loan while you are in school and for the first six months after you graduate from college.
If you are a person that has a lot of need for financial assistance, you may be able to qualify for Pell grants and/or Perkins loans. These types of financial assistance are available for people that have bad credit and need to pay for education. Credit actually isn't part of the process of applying for these loans so go ahead no matter what type of credit you have.
With Pell grants, you aren't asked to repay any of the money that you receive. Eligibility for these grants is based solely on the need of the individual. Usually people try to get Pell grants first, and then take out loans as it's necessary.
If you aren't able to qualify for the federal subsidized loan programs, there are still some options out there for you. Take a look at unsubsidized Stafford loans, because they are probably still available to you, even if you have bad credit.
With this type of loan, the government doesn't pay the interest for you, so you will have to start making payments right after you take out the loan. However, interest rates are quite low on these loans so most people can handle the payments without too much trouble.
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Dave shows student everywhere how to find student loans bad credit and other bad credit student loans.
posted by Credit Counseling at
9:48 AM
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