Searching for Student Loans For People With Bad Credit

Unbeknownst to many, there are student loans for people with bad credit. These student loans do not look at the existing credit of the borrower. Thus, having bad credit is not an issue. These types of loans include Stafford Loans, Perkins Loans and other alternative non-credit based loans.

Stafford loan is a not just a loan for eligible students in institutions of the United States but they are also student loans for people with bad credit. In 1988, it was named after Senator Robert Stafford of Vermont for his works in higher education. Stafford loans are guaranteed by the United States government. These loans have a much lower interest rate than one would get when applying for a private loan. Although they come with lower interest rates, there are strict eligibility requirements and borrowing limits.

Perkins Loans is named after Carl Perkins who is a former member of the U.S. House of Representatives from Kentucky. Perkins loans are need-based student loans for people with poor or bad credit. They carry a fixed interest rate of 5% for a ten-year repayment duration period. It also has a 9-month grace period which means that the borrower can wait and make their first payment on the tenth months after graduation.

There are also alternative non-credit based loans like Loans for Disadvantaged Students, Nursing Student Loan Program and Primary Care Loan Program. These are student loans for people with poor credit and are available for students who are enrolling or are currently enrolled in the field of health sciences such as medicine and nursing. The Loans for Disadvantaged Students is sponsored by the Department of Health and Human Services.

The Nursing Student Loan Program provides up to $4000 per school year to qualified nursing students. It has nine months grace period. Primary Care Loan Program is available to those whose focus is on primary care. It has a grace period of 12 months. However, the recipient of the loan must remain practicing primary care for the duration of the loan repayment.

There are lots student loans for people with bad credit so do not lose the hope of getting a college degree. A bad credit rating need not hinder you in pursuing a degree. As you can see a bad credit rating is no excuse for not attending college. Just apply for the loan and get going. You should have no problem paying off your student loans if you have a college degree and a good career.

Student Loans for Parents with Bad Credit Can Be Found, But May Be Unnecessary

As a parent with bad credit, trying to help your children get money for college can be frustrating. Student loans for parents with bad credit can be hard to come by, but there are ways you can help. There are some loans you can get even with bad credit as well as other financial alternatives.

Most likely you’ve already explored your options with federal loans and financial aid along with your student son or daughter. If you are in financial difficulties, your student may benefit. Check if he or she is eligible for financial aid or need-based scholarships or subsidized loans. The best starting point in gathering education funds is the Stafford loan. This does not have any credit requirement, so get this loan and any subsidized loans you can first, then see how much you’ll need to borrow from private lenders.

You may be eligible to cosign for your children’s student loans even with bad credit, especially if you have a steady employment record to counterbalance credit problems. Offering to cosign your son or daughter’s student loans can help despite your bad credit because lenders will see that you are backing up your student and may offer lower interest rates and fees.

There are many lenders and you are unlikely to receive a flat refusal unless your credit and debt is exceptionally bad. They will compete for the privilege of giving you a student loan for your son or daughter’s education; as filing for bankruptcy will not expunge student loan debts, it is a safe and lucrative investment for lenders.

If your student plans on attending graduate school, you can take advantage of their years as undergraduates to start building up your credit score. Parents can apply for a federal PLUS loan for graduate students with minimal credit requirements. If you help your student son or daughter with their life expenses, textbooks, and supplies, do it with a credit card and pay your card on time. This way you can help them with their studies and, at the same time, increase your credit rating so you can help more in the future.

Another way to increase your credit rating is taking out a collateral loan and paying it back faithfully. You can mortgage a house or car, or apply for a home equity loan to help pay your student’s education costs.

With some work, student loans for parents with bad credit can be obtained, and barring student loans, there are other methods of helping your children get an education.