Bad Credit Student Loans Actually Exist
During the first few years of college, I absolutely ruined my credit. I picked up a few student Visa cards and proceeded to spend money that I didn't have. I hadn't learned about credit and what a terrible thing it can be to have bad credit. When I tried to pay for school and other expenses, this made life pretty difficult.
Since I ruined my credit, I had a hard time qualifying for anything. Trust me when I tell you that trying to run your finances with a 450 credit score is a quite interesting challenge. The worst part is getting denied for credit - the embarrassment will get to anyone. I honestly didn't think student loans were even a remote possibility.
My undergraduate studies were honestly quite a challenge for me. Mostly this was the case because I didn't think I could get loans. I would work for a while and then go to school for a while. Doing school this way takes a really long time. Now I know that I could have taken out student loans even though my credit was terrible.
The federal government has created the Stafford loan program which allows you to take out student loans regardless of your credit history. They guarantee the loans which takes away the risk from the institution that provides you with the loan.
Economically, it makes perfect sense for the government to loan money to students. Even students that have bad credit will increase their lifetime earnings significantly if they graduate from college. The government knows they will get more in taxes if they can get more people to finish school.
Getting Stafford loans is pretty easy if you're a citizen of the United States. All you need to do is go into the financial aid office at your school to fill out a FAFSA. You will then be judged based on your need. If the school determines that you have need, you should be approved quite easily.
If you have a default on a student loan from the past, it will become quite difficult to get Stafford loans. Your only option at that point will be to pay off the defaulted loan. If you've never defaulted, chances are you'll be approved without any problem.
If I had learned about these loan programs earlier, I could have finished school in a much shorter time period. As is, it took a few extra years. I guess you have to live and learn. Hopefully this article will help someone to learn that getting loans is an option now.
Since I ruined my credit, I had a hard time qualifying for anything. Trust me when I tell you that trying to run your finances with a 450 credit score is a quite interesting challenge. The worst part is getting denied for credit - the embarrassment will get to anyone. I honestly didn't think student loans were even a remote possibility.
My undergraduate studies were honestly quite a challenge for me. Mostly this was the case because I didn't think I could get loans. I would work for a while and then go to school for a while. Doing school this way takes a really long time. Now I know that I could have taken out student loans even though my credit was terrible.
The federal government has created the Stafford loan program which allows you to take out student loans regardless of your credit history. They guarantee the loans which takes away the risk from the institution that provides you with the loan.
Economically, it makes perfect sense for the government to loan money to students. Even students that have bad credit will increase their lifetime earnings significantly if they graduate from college. The government knows they will get more in taxes if they can get more people to finish school.
Getting Stafford loans is pretty easy if you're a citizen of the United States. All you need to do is go into the financial aid office at your school to fill out a FAFSA. You will then be judged based on your need. If the school determines that you have need, you should be approved quite easily.
If you have a default on a student loan from the past, it will become quite difficult to get Stafford loans. Your only option at that point will be to pay off the defaulted loan. If you've never defaulted, chances are you'll be approved without any problem.
If I had learned about these loan programs earlier, I could have finished school in a much shorter time period. As is, it took a few extra years. I guess you have to live and learn. Hopefully this article will help someone to learn that getting loans is an option now.
About the Author:
Dave helps educate people about guaranteed online personal loans and bad credit student loans.
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5:13 AM
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