Student Loans for People with Bad Credit

Are you planning on attending college, but are concerned about the availability of bad credit student loans? If you have good credit, you will have many student loan options, but your bad credit student loan options are better than you think. Government direct student loans do not even check your credit before determining if you qualify for one of their student loans. The only thing that will probably stop you from getting a federal student loan is if you have defaulted on a federal student loan in the past.

Another bad credit student loan option is through your parents. Provided their credit is good they may qualify for a PLUS loan. PLUS loans are awarded to the parents of students that are attending school. These loans are also direct student loans and have all the benefits of federal student loans. In order for a student to qualify for a direct student loan they must meet the following qualifications:
• Show financial need (with a few exceptions).
• Be involved in an eligible program, working towards a degree or certification.
• Be a US citizen or an eligible noncitizen with a Social Security number.
• You must have graduated high school, passed an approved ability-to benefit test or have completed approved home schooling.
• If you are male you must have registered with the Selective Service.
• Once enrolled in college, you must maintain minimum academic requirements.

If your credit is not good federal financial aid is your best option because it is need based and not based on your credit worthiness.

You may be able to find an alternative student loan through a private lender, but you will probably get a high interest rate. However, if you work at improving your credit score, you may be able to consolidate your student loans at a lower interest rate after graduation.

Another option for paying for college if you have credit problems is through an employer. There are many companies that will reimburse their employees tuition. If you are a full time employee you may be eligible for up to $5,000 per year for your education. Most companies will require your course of study to be something that you can use at their company. So, if you work for a finance company they will not pay for your nursing degree. However, a hospital might.

Companies that pay for tuition may require you to work for them a certain period of time before you are eligible and they may require you to stay for a certain period after you have graduated from school. If you leave before that time period is up, you may be asked to pay some of the money back. It may take you a little longer to get through school this way, but as long as you are willing to put the time in, this is free money.