Not all of us can have excellent credit. Whether you’ve made a few mistakes or you just don’t have an established credit record, this can make the application process for student loans a lot more complicated. However, there are steps you can take to help your loan get approved, even if you do have bad credit.
Stafford Loans are typically the first choice for individuals in this situation. They offer two different types of loans, subsidized and unsubsidized. A subsidized loans is not awarded based on any credit score. Instead, they will look at your income and your parent’s income to determine eligibility. This should be the first choice for a student that has less than perfect credit. Keep in mind that the government pays the accruing interest on this type of loan, which will lower the amount you’ll have to pay back in the future.
The unsubsidized version will be determined according to your personal credit history, but it is one of the easiest loans to qualify for. Even if you do have bad credit, it’s worth the time to apply for this particular loan. The amounts provided are usually smaller, but in this situation, something is better than nothing.
The next step is the Federal Perkins loan. Once again, this is a loan that is not based on any credit history. They will usually only provide you with up to $4,000 per year, but in some cases, they may go up to $20,000, based on your particular situation. Even graduate students can take advantage of this type of loan.
There are other loans that are available to you, based on the major that you will be taking. For example, there are primary care loans that offer assistance to those who plan on becoming a doctor. These loans are typically not awarded based on your credit history, but you will need to fulfill certain requirements to be eligible and to keep your eligibility once you have been approved.
Having poor credit doesn’t have to mean that you miss out on a college education. You just need to explore the available options and try to find loans that will look solely on your own personal merit and not your past credit history. They are available, particularly from the government, and the terms are typically quite good, when compared to other bad credit loans.
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