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Student Loans for People with Bad Credit

Yes Virginia, Student Loans for People with Bad Credit Do Exist

When Virginia asked if there was really a good ole Saint Nick, student loans for people with bad credit was non-existent in her precious head. But for people that have trashed their score with the mighty three bureaus that decide the ability to buy houses, cars, boats, and most importantly education this is a deep concern. Not everyone is born with a silver spoon in between their pearly whites. Since this is the case it is necessary for average Americans to need to finance their higher education.

A lot of college people can still obtain Stafford money even if their financial history is poor. If this is a major concern and parents have stepped in to save the situation a ParentPlus program might be the best alternative. Parents may have the clout and the known ability to pay the loan back within the government’s allotted time table. The interest rates are still very reasonable just like the Stafford money. Student loans for people with bad credit may be as simple as sitting the folks down and being brutally honest about the state of one’s financial affairs. Many parents don’t want a few bad purchasing decisions to stand in the way of their child’s education.

College people need to be very careful when shopping around for student loans for people with bad credit. There are many scammers that will lie to desperate loan seekers and will tell them they can get money for people with poor ratings. It pays to be wary in this situation. Most people can go to college through money from Stafford, ParentPlus, scholarships, pell grants based upon need, financing based on degree type, and private issued money. Many banks and financial institutions are happy to issue private money for the purpose of education. However, this often requires a close friend or relative to put their John Hancock down as a cosigner. Sometimes interest rates for private money is low, but often rate can be somewhat higher than Stafford financing. Just because someone is in the boat of having messed up their finances doesn’t mean they deserve to pay through the nose either. Be wary of credit card offers and any other type of predatory financing options out on the market. Unscrupulous financiers may try to take advantage of ignorance and desperation. It’s sad but entirely true. If you’re like Virginia you have faith to believe that college will not be a thing of dreams.

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.