Bad Credit Student Loans

Bad Credit Loans for Students with Poor Credit

Every now and then due to some unexpected circumstances such as­ divorce, illness or unemployment one can end up getting late in paying off their debts and sometimes even ends up filing for bankruptcy.  This can result into a poor credit history.  However, that doesn't mean that we cannot get a student loans.  The great news for students with bad credit is - credit doesn't matter. You can even call it a No Credit Check Loan if you wish. 

If you wish, you can: Apply Today for a Low Interest Student Loan

How does it work?

It is very simple.  Federal Student Loans even if they are issued through banks are backed by Department of Education who funds these loans with tax payer dollars.  Therefore, since you as a student are also a tax payer, you qualify for the same low interest rate which anyone with a good credit does.  The only catch is that you must not have defaulted on a previous student loan.  Below are the student loan options for students with low credit scores.

Stafford Loans

Both subsidized and unsubsidized  Stafford loans are available to students with bad credit.  They are also known as Federal Family Education Loan (FFEL) Program and the William D. Ford Federal Direct Loan (Direct Loan) Program. Subsidized Stafford loans are given to students with financial need and very low income.  Unsubsidized loans are made to student with financial need.    For either type of loan, you must fill out a FAFSA. After your FAFSA is processed, your school will review the results and will inform you about your loan eligibility. You also will have to sign a promissory note, a binding legal document that lists the conditions under which ­you're borrowing and the terms under which you agree to repay your loan.

Federal Perkins Loans

Federal Perkins Loans are another great option for students with bad credit.  These loans are made through participating schools to undergraduate, graduate and professional students. They are offered by participating schools to students who demonstrate the greatest financial need (Federal Pell Grant recipients get top priority). The loans are available to students enrolled full-time or part-time.  Which means if you are working full-time to improve your credit history by paying of your debts and are attending school you may still be eligible for it. 

Plus Loans

If you are under the age of 24, your parents can also apply for Federal Plus Loans.  In this case they will be responsible for paying loans if you fail to pay them.

Private Student Loans

Several private lenders can also make you student loans even if you have a low credit score.  The only catch is that you may have to pay a high interest rate.  But the good part is that you will have an option to get that interest accrued and not worry about paying anything until you graduate.