With a bad credit score it is quite difficult to be successful when applying for conventional student loans. This reality should however not hamper your aspirations to get a college education; it is very possible to get or secure funding for college whether you have bad credit or even no credit.
There are a number of student loans for bad credit for which you can apply. Among these options are the federal Stafford Loans, Perkins Loans, Pell Grants, a number of government loans that are non-credit based, and an assortment of various grants and scholarships. A bad credit score shouldn’t necessarily bar you from obtaining credit-based loans. In this case you can use a co-borrower to access the funds and get to repair the state of your credit simultaneously. Read on to get a description of the alternatives you can pursue:
1Stafford Loan
There are two types of Stafford Loans: the unsubsidized and the subsidized, and both of these are applicable to all students regardless of whether their credit health is good or bad. This type of loan is by far the most disbursed form of funding for students at both undergraduate and graduate levels and is ideally not influenced by credit. You can reapply for Stafford loans every school year.
The subsidized Stafford Loan is offered to students who are financially needy. For those who qualify for its award, the federal government settles the loan interest due monthly while they are in school and also during the grace period of six months between graduation and reimbursement.
On the other hand, the unsubsidized Stafford Loan is made available for every student without consideration of the financial need. It is insufficient to rely on the Stafford Loan solely as a result of your credit because the funding provided is regularly meager. For this reason many college students are compelled to take out several different college loans, including some credit-based ones, if only to cater for their auxiliary expenses.
2Perkins Loans
Yet another option for loans for students with bad credit is the federal Perkins Loan. As compared to Stafford Loans which are more popular, a lesser number of Perkins Loans disbursements are made and these are awarded to students with exceptional levels of financial disadvantage. Perkins loans, just like the Stafford loans, don’t require any credit checks for their award and they are made available to both graduate and undergraduate students. The sum of funding awarded for each school year is typically $1000-$4000 and does not exceed $20,000 in total.
Also available are field-specific loan programs that are provided to students in specified fields of study and especially those studying to be teachers, nurses and doctors. As compared to conventional student loans these types of loans feature longer grace periods but they often have certain stipulations with regards to the occupation you intend to practice, the GPA scores to maintain, etc. Some of the common field-specific loans include:
3Loans for Disadvantaged Students
The Loans for Disadvantaged Students program is sponsored by the Department of Health and Human Services. The loans are typically non-credit based and low-interest and are made available to degree students studying in various approved health science profession programs. These students are from backgrounds with financial and/or social disadvantage. To be considered for these, students apply at their schools’ financial aid office and the financial aid office selects the recipients and disburses loans to them.
4Nursing Student Loan Program
Nursing students who qualify for funding from the Nursing Student Loan Program are awarded loans of up to $4000 each school year. These loans are low-interest in nature and feature a 9-months grace period. To qualify, students must have been enrolled in approved nursing programs (with half-time enrolment as a minimum) and show proof of sufficient financial need. Applications for these are also made through the financial aid offices of participating schools.
5Primary Care Loan Program
The Primary Care Loan Program provides students pursuing medical degrees leading to occupations in primary care with non-credit based auxiliary loans that feature a 12-month grace period. One of the requirements that students must abide by in this regard is that for the loan repayment duration they must be engaged in primary care practice.
In addition to these alternative student loans for bad credit there are also a variety of grants and scholarships that can be applied for to obtain college education funding.
6The Pell Grant
A Pell Grant is awarded to students by the federal government once their status of financial need is ascertained – much like what happens for the Perkins Loan. A number of factors are taken into consideration so as to determine the amount which will be awarded. These include the contribution expected from a student’s family, the cost to be incurred in attending school, the enrolment status of the student, i.e., part-time or full-time, and whether a student’s attendance is for an entire academic year or less. Students who are awarded this loan can use the money at one of approximately 5400 institutions and as such there is much more flexibility as to where the funding can be spent as compared with that of the Perkins Loan.
7Get a Student Loan with Bad Credit through Private Student Loans
It is possible that all of the above options will not prove viable perhaps because you are currently earning a lot of money or perhaps the conventional loan programs will prove inadequate to suffice for all your expenses. Private student loans are a viable source for additional or alternative funding if you are caught up in such situations. A good number of familiar lenders are known for providing educational loans and the trend is now being replicated by many well-established financial institutions. It is now possible to locate some of these lenders online as well. Whatever your source of choice, be sure to find the best rates possible and to thoroughly understand what all the terms and conditions are.
