Getting Student Loans With Bad Credit
Are you hoping to someday go to college? Many people in your situation find themselves afraid because of poor credit history. Don't be afraid. There are actually quite a few options for individuals that have bad credit. Getting a college education might be a lot easier than you think.
Federal Stafford Loans and Perkins Loans are two loan options. Pell grants and various types of scholarships and grants all are options as well for a college bound student with bad credit.
The most commonly used loans are Federal Stafford loans. There are two different kinds of Federal Stafford loans. There is the subsidized loan and the un-subsidized.
The subsidized version of the Stafford loan is only available to individuals that have financial need. These loans are great because the federal government takes care of the interest on the loan while you're still in school and also for the first six month after you finish school.
The unsubsidized loan doesn't use financial need as a qualifying factor so it is often available to more students. However, the awards may be smaller so you might have to find more than one source to help supplement the loan. The interest accrued on an unsubsidized is not paid by the government so these loans do accrue interest from the time you take one out.
A Perkins Loan is another alternative for someone with bad credit. There are fewer Perkins loans issued in comparison with the more popular Stafford loans. Like the subsidized Stafford loans, Perkins loans are issued based on financial need. However, qualification is not contingent on past credit history. Both undergraduate and graduate students can qualify for Perkins loans.
A Federal Pell grant is only available for students with significant financial need. Your past income and possibly the income of your parents will be examined to determine if you qualify for a Pell grant. Pell grant awards can range in size from just a few hundred dollars to amounts that would cover all of tuition and expenses.
Since Pell grants are a reward from the federal government, they don't need to be paid back. Not everyone can qualify for them, but those that can should definitely get them, even before they take out loans. Credit history is not considered for the grant approval process.
Federal Stafford Loans and Perkins Loans are two loan options. Pell grants and various types of scholarships and grants all are options as well for a college bound student with bad credit.
The most commonly used loans are Federal Stafford loans. There are two different kinds of Federal Stafford loans. There is the subsidized loan and the un-subsidized.
The subsidized version of the Stafford loan is only available to individuals that have financial need. These loans are great because the federal government takes care of the interest on the loan while you're still in school and also for the first six month after you finish school.
The unsubsidized loan doesn't use financial need as a qualifying factor so it is often available to more students. However, the awards may be smaller so you might have to find more than one source to help supplement the loan. The interest accrued on an unsubsidized is not paid by the government so these loans do accrue interest from the time you take one out.
A Perkins Loan is another alternative for someone with bad credit. There are fewer Perkins loans issued in comparison with the more popular Stafford loans. Like the subsidized Stafford loans, Perkins loans are issued based on financial need. However, qualification is not contingent on past credit history. Both undergraduate and graduate students can qualify for Perkins loans.
A Federal Pell grant is only available for students with significant financial need. Your past income and possibly the income of your parents will be examined to determine if you qualify for a Pell grant. Pell grant awards can range in size from just a few hundred dollars to amounts that would cover all of tuition and expenses.
Since Pell grants are a reward from the federal government, they don't need to be paid back. Not everyone can qualify for them, but those that can should definitely get them, even before they take out loans. Credit history is not considered for the grant approval process.
About the Author:
Dave helps people by teaching them about using a bad credit student loan if they feel like it's necessary. He also helps them to learn about getting the right bad credit student loans.
posted by Debt Consolidation Loan at
2:42 PM
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