Finding Bad Credit Student Loans
If you are seeking to further your education by attending college, most likely you can't afford the tuition costs on your own. You might need some assistance to make ends meet and realize your dream of attending college. But what if you have bad credit or even no credit history at all?
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.
Most student loan programs offered by the federal government are based on need. The government backs these loans and that makes them available for people, even if their credit is poor. As long as you have financial need, you can probably qualify for Stafford loans and you credit history isn't considered when you apply for Stafford loans.
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.
Even if you're not able to qualify for the loans that are backed by the federal government, there are other options available. Unsubsidized Stafford loans are available to almost anyone, even people that don't have that much financial need. Credit isn't part of the approval process for these loans.
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.
Most student loan programs offered by the federal government are based on need. The government backs these loans and that makes them available for people, even if their credit is poor. As long as you have financial need, you can probably qualify for Stafford loans and you credit history isn't considered when you apply for Stafford loans.
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.
Even if you're not able to qualify for the loans that are backed by the federal government, there are other options available. Unsubsidized Stafford loans are available to almost anyone, even people that don't have that much financial need. Credit isn't part of the approval process for these loans.
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.
About the Author:
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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