What are the Best Student Loans for People with Bad Credit?

You might think there are no student loans for people with bad credit. When you have credit problems, it can feel like you are in quicksand. The harder you try to get out of your mess, the deeper you get in. Of course, for long-term financial stability what you really need is a college education – the forerunner to a successful high paying career. It is only natural you would expect your credit rating to eliminate this option, but that’s not necessarily the case.

There are actual several options available, even if you have bad credit. The most popular are government funded Stafford Loans. Your eligibility for the Stafford loan is not dependent on your credit score in any way. They are available to undergraduates and students at a graduate level.

If you qualify as having financial need, you can get a subsidized Stafford Loan. In addition to higher borrowing limits, the program will pay your loan interest for the length of time you are in school, and the first six months thereafter.

For those demonstrating severe financial need, the Perkins government-subsidized loan may also be available. Like the Stafford, it is not dependent on your credit score, however unlike the Stafford, there is no unsubsidized program for those without financial hardship.

Student LoansThere are several student loans for people with bad credit who are studying in the healthcare field. The U.S. Department of Health and Human Services provides this additional assistance. There are four separate programs, all need-based. The Loans for Disadvantaged Students are available for many fields of study. Health Professions Student Loans require one of several specific degrees. Nursing Student Loans focus on those studying nursing.  Primary Care Loans are for those studying to be a primary care provider.

The final method of securing student loans for people with bad credit is by using a co-signer. You can qualify for most credit-based student loan programs if someone with a good credit rating will help you. Providing you pay off your loan on time, the only thing they will need to do is sign a piece of paper. However, if you fail to pay your loan the cosigner will be responsible – by signing they guarantee payments will be made. Before you ask a friend or family member to cosign, be sure you will be able to repay the loan or you could ruin that person’s credit rating as well.

Before you take out any kind of loan, look into your grant and scholarship options. These are available from a wide variety of sources, both government and private. Your credit rating is irrelevant to your eligibility. These are typically awarded based on financial need, academic achievement, or a combination of the two. Some trade associations or professional institutions also sponsor grants and scholarships for those who are studying specialized fields.

A single loan, grant, or scholarship will rarely cover all of your courses, and certainly not the additional expenses college students incur.  Most students have several loans, grants, scholarships, or some combination thereof. When you must turn to student loans for people with bad credit, apply for

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