Bad Credit Student Loans

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Whether you're graduating from high school and considering college, or you're a 22+ student wanting to return to get a higher education, most people need help with school financing. Often this is in the form of loans, sometimes its from grants and scholarships. But what if you have bad credit? Do you deserve any less of a chance at a great education? No, we don't think so.

Students loans for people with bad credit are out there. The interest rates aren't always as good, especially from a regular bank, but there are options. You can get federal money where credit ratings aren't really an issue. They're based almost entirely on financial need. The Perkins Loan and the Federal Stafford Loan are both available options.

How to Qualify for a Bad Credit Student Loan

• US or Canadian citizens
• have an established credit history by having credit cards, other loans, etc
• Be at least 18 years old
• It helps to have an income source
• You can have a better chance of qualifying for a bad credit loan if you get a co-signer with a good credit history.

What are the Advantages to a poor credit student loan?

1. Those students with bad credit will have the opportunity to attend a school and obtain a degree that can give them a better job and better incomes.
2. The student can begin improving their credit rating by making regular payments toward the loan.
3. Most loans have a variety of flexible options giving the student the best possible chance for repaying the loan on a schedule that works for them.

Are there any disadvantages to getting a student loan if you have bad credit?

1. Yes, if you do not pay back the loan on a regular schedule, meaning no late payments or payments below the minimum, then you could end up making your already bad credit much worse.
2. As with any loan it is another financial burden to bear, it will drag on you until its completely paid off.
3. Until your credit rating is back in good standing the interest rate can be quite high.

Once your credit rating is good again you can usually refinance these loans to obtain a lower rate. In order to quality for a refinancing the lender will look at your payment history, amount you owe, and how long you want the loan terms to be.