Student Loans for Bad Credit | No Credit Check on Federal
The Best Way to Obtain Student Loans for Bad Credit
Most students today must rely on student loans to enter college and pursue a degree. There are several options available generally, but what about those students that have bad credit?
Student loans, for the most part, are granted by the Federal government and private lenders. Student loans for bad credit are mostly Federal as a private lender will require a co-signer who has a strong credit score. The Federal loan does not require a credit check and is based solely on financial need, so student loans with bad credit are not an issue.
The Federal program for student loans for bad credit was designed as financial aid for students who could not otherwise afford to enter college and pursue a degree program. These loans are especially structured for students and they have a low rate of interest. The repayment terms are also quite flexible in hopes that the student will be able to repay the loan without any problems.
The Federal student loans for bad credit will generally have a much lower interest rate as compared to a private loan, however, they don’t always cover the full cost of the student’s education. This then requires the applicant to seek funding from a private source, and this presents a number of problems. What can bad credit student loan applicants do?
A loan from a private source lender is usually very difficult to obtain. Some will, however, consider a loan if the student can find a co-signer with a strong credit score. Since the private lender isn’t financing all of the borrowed funds, they will sometimes agree to review all of the applicant’s history and not rely completely on the FICO score. They do, however, look hard at the co-signer.
Applicants for student loans for bad credit have several options available under the Federal loan program. These include Perkins loans, GradPlus loans, Stafford loans, and Parent Plus loans. As mentioned above, these types of loans don’t require a credit check because they are based on financial need.
You can apply for these loans online by simply completing the FAFSA form. The GradPlus loans are also under the Federal loan program and they are designed to cover many of the student’s expenses for cost of books and program fees. They are limited however, to cover the cost of attendance only.
The Perkins loan program is also a low interest rate federal loan for those students with a financial need. Those that are eligible have to demonstrate an exceptional financial need. The FAFSA form must be completed to apply for this program. If you are an applicant for student loans for bad credit, consider all of your options carefully.