Bad Credit Loans for Students
Bad Credit Loans for Students
There is no better investment than education. There are many government and private lenders who are willing to help make a college education available to all students regardless of their or their parent's financial ability to pay tuition.
Student grants and loans make it possible for almost anyone who wants to go to college, graduate or professional school to obtain the resources to do so – even if they have little or no personal resources and a poor credit history.
There are federal financial aid programs as well as private scholarships and grants that do not require a credit check. There are also many private lenders which specialize in bad credit loans for students' educational expenses. These loans are typically long term with repayment due after the student completes their education.
Federal Student Educational Grants and Loans
Students should first consider federal scholarships and grants that do not need to be repaid, unlike student loans. Eligibility for these federal scholarships and grants is need or merit based not credit based. No credit check is required and no repayment is necessary.
The Pell Grant is specifically designed to meet the needs of students with the greatest financial need. If you can demonstrate financial need, you will likely be eligible for a Pell Grant. The Pell Grant is not a loan and does not need to be repaid.
If you need additional financial assistance after you have maxed out your Pell Grant eligibility you should consider the federal and federally subsidized student loans.
Federal student educational loans are available to almost everyone without regard to their financial resources and credit history.
There are also state supported student educational loan programs available to pay for educational expenses. Most state supported student educational loan programs are also available without regard to the student's credit score.
To apply for federal grants and loans you need to complete a FAFSA or Free Application for Federal Student Aid form, which can be found online at http://www.fafsa.ed.gov or through your college's financial aid office. The FAFSA form needs to be completed and submitted before your state's deadline in order to process lending agreements in time to pay your tuition. Specific deadlines for submission of the FAFSA form can be found on the FAFSA website.
Private Student Educational Loans
Private student educational loans are available for students with bad or no credit history. These loans are typically to cover the costs of tuition and associated educational expenses. The loans are generally not required to be repaid until after the student graduates or leaves school.
Most private lenders that require school certification or approval and the total amount of the loan will be capped at cost of tuition and related educational expenses less other financial aid received.
Loan fees, interest rates and repayment terms offered by private lenders vary significantly. You also need to be aware that many lenders charge a lower rate while the borrower is in school and a higher rate after the student graduates and the loan repayment period begins.
You need to consider the impact of the fees, the interest charged and the length of the repayment term when comparing private student loan terms. A loan with a low interest rate but high fees can cost more than a loan with a higher interest rate and no fees. A loan with a lower APR but a longer repayment term may ultimately cost you more than a loan with a higher APR but a shorter repayment term. There are calculators available on line to assist you in getting an apple to apple comparison of private student loan terms from various lenders.
There are private bad credit loans for students to cover their educational expenses however the interest rates for students with bad credit and no cosigner will be higher than the rates available for those with good credit scores or creditworthy cosigners.
Student educational loans are considered obligatory debts
Both federal student loans and private student loans are considered obligatory debts. Obligatory debts cannot be discharged in bankruptcy.
If you have a history of poor money management, think carefully about your obligation to repay your student loans. You must have a plan and commitment to repay these loans.
Short Term Unsecured Bad Credit Loans for Students
To qualify for short term unsecured bad credit loans for students you need to have a school or college identity card. Most bad credit loans for students have the advantage of requiring no collateral and no credit check is required. Most bad credit loans for students are short term with the loan money required to be paid back at the end of the month.
There are no restrictions on the use of the proceeds of these loans however the amounts of these short-term, unsecured loans are generally small – less than $1000.
If you are a student in the United States, are at least 18 years old, have a residence, a bank account in US and can demonstrate you will have the funds to repay the loan your application will be approved.
Conclusion: If you want to go to College you can
A lack of resources or a bad credit history should never be a reason to put off going to college. There are many sources of grants, scholarships and loans. Many are merit or need based and the government sponsored loans and many of the private loans are available to almost anyone regardless of their credit history.