Even though your credit may not be great, there are options to get student loans for people with bad credit. Our staff has taken the time to outline some student loan
resources and have listed them below.
The U.S. Department of Education has student loans for people with bad credit programs available such as the Stafford loan. This loan program does not even consider your credit rating a factor when it comes to qualifications. The only reason bad credit would effect these types of student loans are if you have defaulted on a federally granted student loan in the past.
The Direct Stafford Loan Program comes with a low interest rate and is designed to help cover the cost at a four year college or university, community college, or trade, career, or technical school. The Stafford Loans allow a potential student to borrow directly from the U.S. Department of Education at participating schools.
Included in the Direct Stafford Loan program are Subsidized Loans that are available for students with financial need. Your school will review your finished application for Federal Student Aid and make the determination on how much you will be able to borrow. The second type is the Unsubsidized Loan in which you are not required to demonstrate financial need to receive it. The school that you will be attending will also determine the amount you can borrow.
Other types of loans provided by the U.S. Department Of Education include the Direct PLUS Loans that are designed for parents, graduate and professional degree students. Direct Consolidation Loans are also available to combine federal education loan debts.
Pell Grants are also available to undergraduate students who have not earned a bachelor's or a professional degree. The Federal Pell Grant is not a loan and does not have to be repaid. The maximum Pell Grant award for the 2010-11 award year (July 1, 2010 to June 30, 2011) and the 2011-12 award year (July 1, 2011 to June 30, 2012) is $5,550. The amount you get, though, will depend not only on your financial need, but also on your costs to attend school, your status as a full-time or part-time student, and your plans to attend school for a full academic year or less.
Another type of school funding offered is the Federal Perkins Loan which comes with a low interest rate and is offered to both undergraduate and graduate students with exceptional financial need. Federal Perkins Loans are made through a school's financial aid office.
To apply On-line for Federal Funded Student Aid please visit the U.S. Government website at http://www.fafsa.ed.gov/. If you need further information on the student loan programs we have mentioned above please visit the U.S. Government Student Aid website at http://studentaid.ed.gov/.
Disclaimer: The above information was written on bad credit student loans in good faith, but we cannot guarantee accuracy. If you feel the information is inaccurate please email us at [email protected]