Student Loans For Student With Bad Credit

Do you want to attend college but you are afraid your credit is too bad to qualify for a loan? We have great news for you. There are a number of loans for students with bad credit that don’t use your past credit history to determine if you qualify. Federal Stafford Loans, Perkins Loans, as well as Pell Grants and various types of scholarships and grants all are options for a future college student with bad credit.

The most popular and frequently used loans are Federal Stafford Loans. There are two different kinds of Federal Stafford Loans, subsidized and un-subsidized. Subsidized Stafford Loans are only awarded to those who can prove they financially qualify for the loan based on need.

For people that can qualify for a subsidized Stafford loan, the federal government of the United States will pay the interest on the loan while you are in school, and for six months after you're done with school. The unsubsidized loan doesn’t factor in financial need so it tends to be available to more students. However, the awards can often be smaller so it may require you to seek lending from more than one source. The interest on an unsubsidized loan is not covered by the government so these loans do accrue interest from the time they are issued.

A Perkins Loan is yet another option for someone with poor credit. There are a lot less Perkins Loans issued in comparison with the more prevalent Stafford Loans, however, if you qualify based on need, once again it is another student loan option that doesn’t require a credit history check. Both undergraduate and graduate students can qualify for Perkins Loans, which are great bad credit student loans. A standard loan amount would be anywhere from $1,000 to $4,000 for each school year with a maximum collective loan amount of $20,000.

A Federal Pell Grant is only an option for those with extreme financial need. You must prove, based on past income that you financially qualify for a Pell Grant. You may qualify for just a small award, or perhaps one that may cover all of your tuition and expenses. The true beauty of a Federal Pell Grant is that they are a gift from the government and there is no repayment necessary.

If you do not qualify for a Pell Grant, do not despair. There are thousands of scholarship and grant options available from both the public and private sector which do not disqualify you if you have bad credit. You can visit your institution’s Financial Aid Department or even search the internet to find scholarships and grants that you may qualify for.