Poor Credit Student Loans

Having bad credit isn’t the end of the world

Getting an education should not be postponed just because you have bad credit. Luckily, there are couple ways in which you can get a college loan with bad credit.

1) Consider getting a co-signer. They can be a family member with good credit. This will help you get loans with favorable rates and terms, despite your bad credit.

2) You can contact banks and other private lending institutions and describe your situation. In many cases, they will still lend to you, but at a much higher interest rate. The interest rate will be determined by your credit score, the amount of the loan and the repayment period.

3) Consolidate existing loans while applying for a new tuition loan. It may be necessary to have a co-signer in order to get approved for the loan.

4) Lastly, fill out a FAFSA form and apply for a federal Perkins loan or Stafford loan.

The federal Stafford Loan comes in two types - subsidized and unsubsidized. Both of these are relevant to all students, even those with bad credit or no credit.

The subsidized Stafford Loan - is completely awarded based on the economic needs of the borrowing student. And the government pays the accruing interest on the loan.

The unsubsidized Stafford Loan - is available to every student, regardless of need. However, if you are soley depending on the Stafford Loan because of your credit, the loan awards will be very small. This is one reason why many college students carry multiple loans to cover other college expenses.

The Federal Perkins Loan is another government subsidized student loan that does not require a credit check. Perkins loans are available for both undergraduate and graduate students. Typical loan awards are between $1,000 and $4,000 for each school year, not to exceed $20,000 total.