Bad Credit Student Loans

Unfortunately, by the time some students get to college, they have already managed to get into trouble with credit. College itself may be the problem, especially if a student had to leave school in the middle of a semester and was unable to pay off existing loans. Some students who find themselves in this position feel that they can never get back to college because they won't be able to get loans.

Low Interest Student Loans are Available

The two primary government-funded loans that are available to students who are having difficulty finding money for college are the Perkins Loans and Stafford Loans. Whether a Stafford Loan is subsidized or not is based on each individual student's need. Stafford Loans come with a reasonable interest rate and long-term payback options.

Perkins Loans may come with even lower interest rates, but they are distributed by individual colleges based on Federal criteria. Part of each Perkins Loan is government funded, and, unlike Stafford Loans, Perkins loan repayments are made directly to the issuing school.

Some students with bad credit histories can qualify for bad credit private student loans. It is highly important for students and parents considering this option to exhaust all other sources of financial aid before applying for private loans. Typically private loans cost more than Federally-funded loans because they are made on the basis of criteria determined by the lender. If all other options have been tried, however, private bad student loans will still cost less than piling up credit card debt.