Student Loans with Bad Credit

In this day and age, with the recession hitting people hard, it should come as no surprise that many people have bad credit. But even if this is the case, you can still get really good student loans with bad credit at a low interest rate.

First off, most loans now are dealt through DirectLoans which is the Federal Government. The government doesn’t seem to care how bad your credit history is, as even people in default can get loans as long as they don’t default on the student loans. Even though they don’t cover all of your expenses, they can help you to stave off your creditors. The limit is $7,500 if you are a dependent undergraduate student, $12,500 if you are an independent undergraduate student and $20,500 per year if you are a graduate student. However, keep in mind there are limits to the total amount of loan money you can borrow. Those limits are $31,000 for dependent students, $57,500 for independent students and $138,500 for graduate students.

Don’t forget that there are options for paying back Federal loans. Thanks to Income Based Repayment, the amount of money that you need to pay back is limited to 10% of disposable income based on the poverty line and any balance left over will be forgiven after 20 years, or 10 years if you go into a teaching profession.

Student Loans with Bad CreditSecond, consider getting a co-signer. Yes, this economy has buried millions of people under an avalanche of debt but you can still get student loans with bad credit with help from someone who hasn’t been affected as badly by this downturn. In most cases, this person can help you get a better rate and even show that you’re good to repay these student loans. Most co-signers are only responsible for 48 payments which are made after graduation and it may even tip the scales in your favor to get you the loan you need.

Third, if you can’t find a good co-signer and you really need the money, try going a Google search and look for companies that will help you find the right student loans with bad credit. The problem here is that not all companies are reputable and some may charge you a large up-front cost. Never agree to pay a large sum of money. It will only lead to despair as these companies are looking to prey on people who are desperate to get financial assistance.

Getting the loans you need for college shouldn’t be difficult or problematic, if you know the right steps to take. Don’t let your credit history dissuade you from trying to get a better life. It can be done; you just have to be willing to make a few sacrifices.

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