How To Get Loans When You're A Student With Bad Credit
Do you plan to attend college but you worry that your credit is too bad to ever qualify for a loan? Do not despair; there is good news for you. There are options for students with bad credit because there are some loans that don't look at your credit history to decide if you qualify.
Federal Stafford Loans and Perkins Loans are two loan options. Pell grants and various types of scholarships and grants all are options as well for a college bound student with bad credit.
Out of all of the loans that the government offers, Stafford loans are the most commonly used. They are available based on the need of the applicant, as determined by the school they are attending.
Stafford loans that are subsidized are given only to individuals who are in need, but are extremely helpful if you can qualify. The federal government takes care of the interest on these loans through school and for up to six months afterwards.
Unsubsidized Stafford loans are given to anyone who wants them, but are somewhat different than the subsidized version. The funds that can be taken are somewhat smaller then the subsidized version and the federal government doesn't pay for the interest that builds up.
Perkins loans are also available for students that have bad credit. Perkins loans are harder to qualify for in that you must have more financial need than those who can qualify for Stafford loans. You can qualify for Perkins loans even if you have a bad credit history.
A Federal Pell grant is only available for students with significant financial need. Your past income and possibly the income of your parents will be examined to determine if you qualify for a Pell grant. Pell grant awards can range in size from just a few hundred dollars to amounts that would cover all of tuition and expenses.
Since Pell grants are a reward from the federal government, they don't need to be paid back. Not everyone can qualify for them, but those that can should definitely get them, even before they take out loans. Credit history is not considered for the grant approval process.
Federal Stafford Loans and Perkins Loans are two loan options. Pell grants and various types of scholarships and grants all are options as well for a college bound student with bad credit.
Out of all of the loans that the government offers, Stafford loans are the most commonly used. They are available based on the need of the applicant, as determined by the school they are attending.
Stafford loans that are subsidized are given only to individuals who are in need, but are extremely helpful if you can qualify. The federal government takes care of the interest on these loans through school and for up to six months afterwards.
Unsubsidized Stafford loans are given to anyone who wants them, but are somewhat different than the subsidized version. The funds that can be taken are somewhat smaller then the subsidized version and the federal government doesn't pay for the interest that builds up.
Perkins loans are also available for students that have bad credit. Perkins loans are harder to qualify for in that you must have more financial need than those who can qualify for Stafford loans. You can qualify for Perkins loans even if you have a bad credit history.
A Federal Pell grant is only available for students with significant financial need. Your past income and possibly the income of your parents will be examined to determine if you qualify for a Pell grant. Pell grant awards can range in size from just a few hundred dollars to amounts that would cover all of tuition and expenses.
Since Pell grants are a reward from the federal government, they don't need to be paid back. Not everyone can qualify for them, but those that can should definitely get them, even before they take out loans. Credit history is not considered for the grant approval process.
About the Author:
Dave helps people by teaching them about using bad credit student loans if they are in need. He also helps them to learn about avoiding the wrong bad credit student loans.
posted by Credit Counseling at
6:18 AM
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