How To Get 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?
Do you have to wait to establish your credit or improve it before you can hope to qualify for a loan? No, you don't. Fortunately, there are bad credit student loans available for people with bad credit or no credit who are interested in continuing their education.
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.
Another loan type that's offered by the federal government is Perkins loans. This loan is extremely cheap over time and is intended to be used only by individuals that have extreme need. In order to qualify, a person must show that they have need, but credit history isn't part of the approval process.
You are not expected to repay any of the money you receive. Some people may qualify for a Federal Pell Grant, but not in the amount to cover all of their tuition and college expenses so they may take out a loan in addition to the grant.
If you don't qualify for loans that are issued to those with financial need, there are still options for bad credit student loans. There is another kind of Stafford loan that is unsubsidized. This means that once the loan is issued, it begins accruing interest and you are responsible for repaying that interest in full.
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.
Do you have to wait to establish your credit or improve it before you can hope to qualify for a loan? No, you don't. Fortunately, there are bad credit student loans available for people with bad credit or no credit who are interested in continuing their education.
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.
Another loan type that's offered by the federal government is Perkins loans. This loan is extremely cheap over time and is intended to be used only by individuals that have extreme need. In order to qualify, a person must show that they have need, but credit history isn't part of the approval process.
You are not expected to repay any of the money you receive. Some people may qualify for a Federal Pell Grant, but not in the amount to cover all of their tuition and college expenses so they may take out a loan in addition to the grant.
If you don't qualify for loans that are issued to those with financial need, there are still options for bad credit student loans. There is another kind of Stafford loan that is unsubsidized. This means that once the loan is issued, it begins accruing interest and you are responsible for repaying that interest in full.
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 educates students on finding a good bad credit student loan and also how to avoid getting the wrong bad credit student loans.
posted by Debt Consolidation Loan at
1:20 PM
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