Is There Such A Thing As Bad Credit Student Loans?
The first few years I was away from home, I ruined my credit. Spending money that I didn't have was my big vice and there were times when I couldn't make my credit card payments. This obviously made life quite difficult when I tried to get loans. Banks saw me as a huge risk and wouldn't loan me money.
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.
If you think about the economics behind this program, it actually makes a lot of sense. If the government can increase your ability to earn, you will pay more taxes later in life. They may take a hit on some defaults now but will make more in the future. This is why they're willing to basically sign with you on your student loan.
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.
Defaulting on previous education loans can make you ineligible for Stafford loans. If you have an educational loan in default, you will have to pay it off and you can then qualify for a Stafford. If you haven't defaulted on a loan for education in the past, there's a pretty good chance that you can take out this type of loan.
Student loans would have helped me immensely while I was in college. I wasted tons of times trying to pay for school and in the end, it cost me a few years. Getting loans could have really sped up my process.
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.
If you think about the economics behind this program, it actually makes a lot of sense. If the government can increase your ability to earn, you will pay more taxes later in life. They may take a hit on some defaults now but will make more in the future. This is why they're willing to basically sign with you on your student loan.
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.
Defaulting on previous education loans can make you ineligible for Stafford loans. If you have an educational loan in default, you will have to pay it off and you can then qualify for a Stafford. If you haven't defaulted on a loan for education in the past, there's a pretty good chance that you can take out this type of loan.
Student loans would have helped me immensely while I was in college. I wasted tons of times trying to pay for school and in the end, it cost me a few years. Getting loans could have really sped up my process.
About the Author:
Dave helps people to learn about different types of guaranteed online personal loans and bad credit student loans online.
posted by Credit Counseling at
1:00 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home