Bad Credit Student Loan - What To Do If You Need One
By Mark Kessler
Are you concerned that bad credit will prevent
you from going to college? While it is true
that finding student loans with excellent
interest rates is easier if you have a sterling
credit rating, bad credit student loan aid
is possible. For example, the most popular
US Department of Education loan, the Stafford
loan, assumes that most applicants will be
going to college straight from high school,
and will not have a credit rating yet. Therefore,
Stafford loans do not even consider the credit
rating a factor when it comes to qualifications.
The same holds true for Perkins loans, which
are federal loans designated for the neediest
students. The only reason bad credit would
interfere with these kinds of student loans
are if you have defaulted on a federally granted
student loan in the past.
Bad credit student loans are also possible
if your parents have better credit than
you do. In this case, a PLUS loan, which
is granted to parents and not to the student,
might be the way to go. US Department
of Education student loans (like Stafford
and Perkins loans) assume that the parents
will pay for a certain amount of their
children's schooling; PLUS loans are intended
to cover the amount that the parent is
obligated to contribute toward college
costs.
Federal funding is a good choice for
a bad credit student loan because they
are specifically designed to help make
college more accessible; therefore, their
requirements are much looser than those
of most banks and other lending companies.
However, if you are unable to secure a
US Department of Education student loan,
you may need to turn to private loans.
If you are planning to graduate in a field
with a high earnings potential, like law
or medicine, you might have a better chance
of receiving a bad credit student loan
from private lenders.
None of these choices are either/or possibilities,
by the way. You may be able to put together
enough money to finance college through
a combination of any or all of the above
types of loans. Moreover, even if your
bad credit student loan is at a very high
interest rate, all is not lost. Many student
loans defer payment until you have finished
college, giving you time to improve your
credit rating. At that point, you might
want to look into ways to consolidate
your student loan at a better rate, lowering
your payments to a more affordable level.
Mark Kessler's website offers a comprehensive
free resource of college financial aid
for Consolidating Student Loans, as well
as... Alternative Student Loans, ACS,
Bad Credit Student Loan, US Department
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a variety student loan articles... ==>http://studentloans.seeking411.com
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