Chances are you’re on your way to college or you’re already attending and you’ve discovered that you need more money than expected. The problem is, you’re too young to have established good credit or you’ve had some issues in the past and your credit score is shot so, you are unable to get approved for a private student loan with bad credit.
Well, don’t freak just yet. Just because you don’t have good credit doesn’t mean you can’t get a credit-based student loan. Using a co-borrower may get you the money for college you need as well as help you build up your credit score and possibly get you some incentives or lower interest rate on your private loan.
Also, there are several college funding options available to you that are not credit-based like; Federal Stafford loans, federal Perkins loans, college scholarships and college grants to name a few.
Stafford Loans
The federal Stafford loan is the most distributed college loan for both undergraduates and graduate students. Federal Stafford loans are in a sense student loans for bad credit borrowers and this federal college loan comes in two forms – subsidized and unsubsidized. Both of these college loans are not credit-based like private student loans so bad credit or no credit is not an issue with federal loans.
Subsidized Stafford Loan
The subsidized Stafford loan is only awarded to financially needy students. With Stafford loans you do need to qualify and if you do the federal government will actually pay the interest due every month on your Stafford loan while you’re in school, in your six-month grace period once your graduate or in a hardship deferment.
Unsubsidized Stafford Loan
Unlike the subsidized Stafford loan, the unsubsidized loan is available to every student, regardless of need. Something a lot of students actually get confused with. Just because you do not qualify for a subsidized Stafford does not mean you are out of luck. These student loans are available to all students but the federal government does not pay the interest due every month on these loans. While you are in college, in your six-month grace period or on a deferment/forbearance you will still be responsible for the interest that will get tacked onto your principle each month.
If you have not taken advantage of your Stafford loans, please find out more information about applying for subsidized Stafford loans and unsubsidized Stafford loans.
Perkins Loans
Yet another available options for poor credit borrowers is the federal Perkins loan. Perkins loans are very popular but only awarded to those students who are in the most need. This government based college loan requires no credit check and is available to both undergraduate and graduate students.
College Scholarships and Grants
The Federal Pell Grant is a great college loan that does not require the awarded student to repay the federal government for the loan. Instead of a loan, think of the Pell Grant as more of a gift but a gift that is only given to the absolute neediest college students.
Scholarships are like federal Pell Grants and are available from tons of sources. From state government offers to sponsors for those seeking a specialized degree or graduate research work, you can find grants and scholarships available. It’s recommend to check with your financial aid department at your college for more information on scholarships and grants or check one of the many scholarship search engines available online. And remember, scholarships and grants require no credit checks so; bad credit is not a problem.
If you’ve exhausted all of your federal options and still need money for college, don’t discount yourself from receiving a private student loan. Contact a private student loan lenders to see what you will need to do to get private student loans with bad credit. It may be as simple as having your parent or relative co-signing for you.
Student Loans for Bad Credit
Chances are you’re on your way to college or you’re already attending and you’ve discovered that you need more money than expected. The problem is, you’re too young to have established good credit or you’ve had some issues in the past and your credit score is shot so, you are unable to get approved for a private student loan with bad credit.
Well, don’t freak just yet. Just because you don’t have good credit doesn’t mean you can’t get a credit-based student loan. Using a co-borrower may get you the money for college you need as well as help you build up your credit score and possibly get you some incentives or lower interest rate on your private loan.
Also, there are several college funding options available to you that are not credit-based like; Federal Stafford loans, federal Perkins loans, college scholarships and college grants to name a few.
Stafford Loans
The federal Stafford loan is the most distributed college loan for both undergraduates and graduate students. Federal Stafford loans are in a sense student loans for bad credit borrowers and this federal college loan comes in two forms – subsidized and unsubsidized. Both of these college loans are not credit-based like private student loans so bad credit or no credit is not an issue with federal loans.
Subsidized Stafford Loan
The subsidized Stafford loan is only awarded to financially needy students. With Stafford loans you do need to qualify and if you do the federal government will actually pay the interest due every month on your Stafford loan while you’re in school, in your six-month grace period once your graduate or in a hardship deferment.
Unsubsidized Stafford Loan
Unlike the subsidized Stafford loan, the unsubsidized loan is available to every student, regardless of need. Something a lot of students actually get confused with. Just because you do not qualify for a subsidized Stafford does not mean you are out of luck. These student loans are available to all students but the federal government does not pay the interest due every month on these loans. While you are in college, in your six-month grace period or on a deferment/forbearance you will still be responsible for the interest that will get tacked onto your principle each month.
If you have not taken advantage of your Stafford loans, please find out more information about applying for subsidized Stafford loans and unsubsidized Stafford loans.
Perkins Loans
Yet another available options for poor credit borrowers is the federal Perkins loan. Perkins loans are very popular but only awarded to those students who are in the most need. This government based college loan requires no credit check and is available to both undergraduate and graduate students.
College Scholarships and Grants
The Federal Pell Grant is a great college loan that does not require the awarded student to repay the federal government for the loan. Instead of a loan, think of the Pell Grant as more of a gift but a gift that is only given to the absolute neediest college students.
Scholarships are like federal Pell Grants and are available from tons of sources. From state government offers to sponsors for those seeking a specialized degree or graduate research work, you can find grants and scholarships available. It’s recommend to check with your financial aid department at your college for more information on scholarships and grants or check one of the many scholarship search engines available online. And remember, scholarships and grants require no credit checks so; bad credit is not a problem.
If you’ve exhausted all of your federal options and still need money for college, don’t discount yourself from receiving a private student loan. Contact a private student loan lenders to see what you will need to do to get private student loans with bad credit. It may be as simple as having your parent or relative co-signing for you.