CAN I GET STUDENT LOAN WITH MY BAD CREDIT?
With all the mounting bills and debts, it might seem as if continuing your education would remain an impossibility. You have considered the salient fact that you have a bad credit, and you are wondering if it is possible to get a student loan with bad credit.
Yes, you can get some forms of student loans with your bad credit, although you are not eligible for every kind of loan. Your best bet would be a federal student loan. You can get federal student loans with or without credit history, with a credit score between 300 and 629, you are eligible for:
- Federal loans
- Private loans from lenders that do not require credit or co-signer
- Private loan backed by co-signer possessing a good credit.
Federal Direct Student Loan
Federal loans would solve most of the student’s financial troubles if not for its limited nature. They are from the federal government and therefore do not depend on the borrower’s credit history. To apply for federal loan as a student, you need to fill the Free Application for Federal Student Aid (FAFSA), which will allow you to choose the loans you qualify for.
Federal loans are either subsidized or unsubsidized. For subsidized loans, the interest is paid by the government on behalf of the student within the loan period. This is available only to students with a proven financial need. For an unsubsidized loan, the interest accumulates over the borrowing period to be repaid after graduation.
Federal loans span over 10-25 years with amount up to $31,000 for undergraduates with parental assistance, and $57, 500 for undergraduates flying solo. Your best option is federal direct loans, not only because they overlook your bad credit, they also allow for generous flexibility in loan repayment with low fixed interest rates.
Private student loans
There are some great private student loan options available for students with bad credit. For example, there is the Ascent independent student loan, and the Mpower student loan, among others.
Most private loans a have average limits between $75, 000 and $120,000. Since some of them rely on credit history to award loans to students, you can get around that by hitching up with a qualified co-signer.
Alternative student funding schemes
To make up for the inadequacy of the federal and private loans, a student can augment with scholarships and work-study programs. Other options include borrowing from friends and family; this may be more flexible than official loans.
There are also special loan programs like the Loans for Disadvantaged Students and Health Professions Student Loans for indigent students in the health discipline. There are several other similar loan options for nurses, and other students pursuing a career in the health profession, as well as Primary Care Loans.