Bad Credit Student Loans – How Your Can Still Get Loans

August 26, 2011

Bad Credit Student Loans

If you are looking for infromation on bad credit student loans because your credit is in the pits, no worries, we’ve got your back as we will show you how to still get money for college even though your credit score is low. Don’t let a bad credit score ruin your dreams and aspirations of attaining a degree, follow the methods below and you will we able to get financial aid in the form of loans.

Bad Credit Student Loans

Bad Credit Student Loans – 2 Different Methods

You may have been told that there are no such thing as bad credit student loans, but this is not true. There are two methods you can use on your search for bad credit student loans, those two methods are:

  1. Federal Loans, like the Stafford, Perkins and PLUS loan programs, many of them provide bad credit student loans as a lot of these programs aren’t credit based, but need based. This means that you don’t have to have a good credit score to be eligible, you just need to demonstrate that you actually are in a posistion where you need this loan. This can be done through many ways like, showing that you aren’t receive enough help financially through the financial aid your are receiving currently, if any, if your parents have low income, or if you are unemployed, etc. Another benefit of this bad credit student loans method is that federal loans are known for having many perks like, low interest, fliexible repayment options, and are just plain cheaper in the long run. So if you can do things this way, it is the best way to go.
  2. If for whatever reason you are unable to obtain loans through the above bad credit student loans option, there is another loophole. There are private organizations like banks and private lenders who lend money to people who provide a cosigner, meaning someone with a good enough credit score that can sign for you because your credit is too low. These programs usually will have your closest relative, usually parents, cosign and then there will be a credit check on them, if they fail as well, you still aren’t out of it, as many programs allow you to try another relative. This bad credit student loans method boasts some benefits like many of them offer discounts if you pay on time or get your loan payment automatically deposited each month, but usually have much higher interest rates compared to federal loans. Being that you have bad credit, a great option about the cosigner method is that after a certain amount of time during repayment, the loan can be transferred to your name, enabling you to make on time monthly payments and boost your credit score higher.

Bad Credit Student Loans – Conclusion

So these are the two ways in which you can get bad credit student loans. These methods have been used by millions of people who have bad credit and are still able to get enough money go further their education. If for some reason these bad credit student loans methods don’t work out for you, then you can check out both scholarships through your school you wish to attend as well as look into federal and private grant programs which can provide help in the form of financial aid as well, a great program you can use is called the Pell Grant.

Category: Stuent Loans For Bad Credit

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