How do I get a College Loan if I have bad credit?

By Susan - Tuesday 6 Jan 2:00 pm

Going to college is a costly affair, as we all know, but there are a plethora of viable solutions in the form of college loans for us to take advantage of to make the process more attainable. But what happens if you have a bad credit history? Are you as eligible for college loans? Read more…

Would be students with a bad credit score need not discount themselves from applying for college loans. There are in fact, a decent amount of options available for those with bad credit and the chances of at least one of them being approved are extremely probable.

 The following college loans can be further investigated for those students with a bad credit record:

• Federal Stafford college loans
• Federal Perkins college loans 
• Bad credit rating loans – secured and unsecured 
• Credit based college loans utilizing a cosigner 

Federal Stafford college loans do not require a credit check and so are completely viable funding solutions for those with bad credit. Some Federal Stafford college loans can be subsidized for those students that display a need for college funding, while unsubsidized college loans are available to all would be students, possibly including those with bad credit. These are the most widely distributed college loans for those with bad credit ratings and those without.

Federal Perkins college loans are not as widely disbursed as Stafford loans, but they also do not require a credit check. If you have bad credit, you would be able to apply for one of these, bearing in mind that approval on Perkins college loans is more difficult and they are usually awarded to those students who display an exceptional need for them.

Bad credit rating loans are not only set aside for college loans but for any form of monetary requirement. They are offered mainly by private lending agencies and financial services providers. They come in two forms: secured and unsecured. Secured bad credit college loans are awarded when the borrower offers some form of collateral that is equal to or higher in value than the total loan amount. In the event of the borrower failing to make payments, the collateral is repossessed and sold to make up the value of the outstanding college loan. Unsecured loans are offered without the backup of collateral, but the interest rates on these bad credit college loans are exceptionally high.

Using a co-signer with a good credit history to sign with you on your college loan application could improve your chances of obtaining one. They would not be held responsible for any debt you incur, but their credit rating would work in place of your bad credit rating to get your college loan approved.

With these options in place for those with bad credit ratings, achieving you goals is still possible and obtaining a college loan is well within your reach.

Posted in: College Loans

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