Bad Credit Student Loan

How To Get A Bad Credit Student Loan?

It used to be that students starting college had no credit history at all.  As the typical student profile has changed, though, an increasing number of people seeking financial aid are doing so with a bad credit history.  While this might preclude them from getting some types of conventional loans, there are programs available that will underwrite a bad credit student loan.
 
Federal Stafford Loan
A federal Stafford Loan is one type of loan available to students with bad credit.  It can be awarded as either a subsidized or an unsubsidized loan; the specific needs of the student determine this aspect of the loan.  The money comes directly from the government or from one of their lender partners.  Repayment is made to whoever provided the money, either the government or a lender partner.

Federal Perkins Loan
This is another type of federal student loan available to students with a bad credit history.  Unlike a Stafford Loan, the Perkins Loan is awarded through your school.  It is partially funded by government resources, with the balance coming from other sources.  The interest rate is very low and loan repayment typically is made to the school rather than to another source.

 
Bad Credit Private Loan
This type of loan comes from a private lender, usually a bank or other financial institution.  While it is harder to get a bad credit private loan than a normal private student loan, it is by no means impossible.  Lenders are more willing to make bad credit student loans than bad credit conventional loans, so this works in your favor.  The interest rate will likely be higher than other types of loans, but for most people it is worth it to receive much needed assistance with college expenses.  Once repayment begins, you can even start improving your credit rating by making all of your student loan payments on time and in full.