Many students plan on attending college. Arranging financing can be a very
stressful time. When a student has bad credit, it can add to the stress.
A student with good credit should not have any problem finding the
financing that he or she need, while a student with bad credit may find it to
be very arduous. The U.S. Department of Education offers several different
student loans so that every student is given the opportunity to attend college,
there are different qualifications for each of the loans, and some do not
conduct credit checks.
Federal student loans were developed to assist
students with the rising costs of higher education. The financial guidelines
have fewer restrictions than those of private lenders. The only way that a
student can be turn down for a federal loan is if they have defaulted on a
federal loan in the past. A student with bad credit cannot be denied for that
reason. A Stafford loan is one of the most popular student loans because the
process of credit checks is omitted. It is assumed that the student is going
from high school into college right away, therefore they will have a very limited
credit history if any at all. A Perkins loan is similar to a Stafford loan, the
only difference being that a Perkins loan is granted to students who need it
the most.
Another type of student loan that is available is
called a PLUS loan. This type of loan is available to parents of the student
with bad credit as long as the parents have better credit than the student.
Since parents assume some of the cost of the tuition, the PLUS loan covers what
the parents would have to pay.
A federally funded bad credit student loan is an option for many
students. However, if the field in which you choose is one of medical or the
practice of law, you may want to consider a private lending institution. They
are more likely to grant a bad credit student loan because of
the field that you have chosen.
Depending on the field that you choose, it may be necessary to
apply for several of these loans to cover the cost of tuition. It is important
to remember that a bad credit student loan usually comes with
a very high interest rate. Therefore, it is in your own best interest research
all of your options before you make your final decision.
Many students plan on attending college. Arranging financing can be a very stressful time. When a student has bad credit, it can add to the stress.