How To Get Bad Credit Student Loans

How To Get Bad Credit Student Loans

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by Dave Davidson

For people that are trying to further their education by going to college, the cost of tuition can be pretty overwhelming. In order to achieve your educational goals, it may be necessary to find some assistance. What should you do if you’re a person that has bad credit?

Lots of people ask me if they will need to improve their credit score before they apply for student loans. I almost always tell them that this won’t be necessary. The government provides several different types of loans that help people that have bad credit.

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There are loans available based on need and there are also loans issued even if there is not a financial need. Most of these loans are backed or issued by the government. If you can prove a financial need, you may be able to qualify for a Federal Stafford loan or Perkins loan. The Stafford loan issued based on financial need is a subsidized loan. With this loan, the government pays the interest on the loan while you are in school and for the first six months after you graduate from college.

Another loan type that’s offered by the federal government is Perkins loans. This loan is extremely cheap over time and is intended to be used only by individuals that have extreme need. In order to qualify, a person must show that they have need, but credit history isn’t part of the approval process.

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If you’re able to qualify for Pell grants, they will never have to be paid back. As long as your education is in good standing, you should be able to get a Pell grant each semester for as long as you qualify.

Even if you’re not able to qualify for the loans that are backed by the federal government, there are other options available. Unsubsidized Stafford loans are available to almost anyone, even people that don’t have that much financial need. Credit isn’t part of the approval process for these loans.

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With unsubsidized Stafford loans, the government doesn’t assist at all with the repayment. However, these loans generally have pretty good interest rates. Bad credit history won’t disqualify you from getting this loan type.

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