The idea of student loans for bad credit can appear to be an oxymoron at first. Most students in the old days were 17-18 years old and had no credit history, but today many people are going back to school at much later stages in life. For these people, some of whom have poor credit ratings, obtaining a loan even with bad credit will be crucial to them getting the degree that they covet.
In addition, many parents that will sign with their sons and daughters to obtain student loans will also have bad credit in today’s troubled economic times. Thus, yet another new category in the financial world has been created, and it makes sense the longer that you think about it: even student loans are sought by people with poor credit these days.
Tips & Pointers for Finding Student Loans
If you need one of the student loans that are available in today’s market, here are a few pointers on getting what you need to fund your drive for a sheepskin:
- If at all possible, find a co-signer with a good credit history. This could be a family member or friend that believes in you. His/her signature will greatly increase your chances of getting a loan, and it will also help you to immediately begin to re-establish a good credit rating.
- Get as much federal help as possible, because these loans are need-based and do not take into account credit scores. Try to pool all the savings that you can, and add federal loans to minimize the chance of needing a private loan.
Federal sources include Pell Grants, Perkins and Stafford Loans, among others. Complete the FAFSA worksheet online, meet the appropriate deadlines and find a sympathetic financial services employee at your school.
- Ask your school about work study opportunities. These are abundant, and they can go directly to paying your school costs, hence further decreasing your need for personal loans.
You might not have the life of leisure that you envisioned when you enrolled in college, but the hours you give to work study will force you to be more disciplined as you budget time for studies and fun. That’s a good thing, and if it means little to no private loans with high interest rates, that’s a better thing.
Federal Student Loans don’t look at Bad Credit
Student loans are always available, and fortunately, federal help is blind to your credit rating. There are several creative ways to avoid having to tap into a private loan to fund your education.
Even though bad credit loans can be had in today’s market, it’s best to leave your school debt unaffected by sky-high interest rates that begin to accumulate as soon as you enroll. Go with work study and federal loans to meet your tuition and housing bills if at all possible.