Bad Credit Student Loans Actually Exist
When I was younger, I absolutely destroyed my credit. I got two student credit cards in my first year of school and it all went downhill from there. My parents hadn't taught me about credit and honestly, my money management in general was just terrible. Since my parents couldn't help me with school, paying for it was always very difficult.
Since my credit score was in the 450 range, getting loans was also really tough. I couldn't even get a cell phone without putting down a deposit of over $400. Since I had been denied for other types of loans, I honestly believed that getting student loans was outside the realm of possibility for me.
Now that school is a thing of the past, I have started to learn a lot more about loans and credit. The funny thing is that I could have taken out student loans all along. There are a few different government programs that help people with bad credit.
The federal government has created the Stafford loan program which allows you to take out student loans regardless of your credit history. They guarantee the loans which takes away the risk from the institution that provides you with the loan.
Economically, it makes perfect sense for the government to loan money to students. Even students that have bad credit will increase their lifetime earnings significantly if they graduate from college. The government knows they will get more in taxes if they can get more people to finish school.
Qualifying for Stafford loans is actually quite simple. First, you will need to be a citizen of the United States that is 18 years old. Yes, minors can go to college. However, they can not legally get loans without a cosigner.
If you have a default on a student loan from the past, it will become quite difficult to get Stafford loans. Your only option at that point will be to pay off the defaulted loan. If you've never defaulted, chances are you'll be approved without any problem.
Honestly I wish that I had known about this type of loan while I was in college. It would have saved me a lot of wasted time. Working through school and taking semesters off can really damage your ability to finish school quickly. Taking out loans can solve this issue.
Since my credit score was in the 450 range, getting loans was also really tough. I couldn't even get a cell phone without putting down a deposit of over $400. Since I had been denied for other types of loans, I honestly believed that getting student loans was outside the realm of possibility for me.
Now that school is a thing of the past, I have started to learn a lot more about loans and credit. The funny thing is that I could have taken out student loans all along. There are a few different government programs that help people with bad credit.
The federal government has created the Stafford loan program which allows you to take out student loans regardless of your credit history. They guarantee the loans which takes away the risk from the institution that provides you with the loan.
Economically, it makes perfect sense for the government to loan money to students. Even students that have bad credit will increase their lifetime earnings significantly if they graduate from college. The government knows they will get more in taxes if they can get more people to finish school.
Qualifying for Stafford loans is actually quite simple. First, you will need to be a citizen of the United States that is 18 years old. Yes, minors can go to college. However, they can not legally get loans without a cosigner.
If you have a default on a student loan from the past, it will become quite difficult to get Stafford loans. Your only option at that point will be to pay off the defaulted loan. If you've never defaulted, chances are you'll be approved without any problem.
Honestly I wish that I had known about this type of loan while I was in college. It would have saved me a lot of wasted time. Working through school and taking semesters off can really damage your ability to finish school quickly. Taking out loans can solve this issue.
About the Author:
Dave helps people to learn about different types of guaranteed online personal loans and bad credit student loans online.
posted by Debt Consolidation Loan at
2:42 PM
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