3 loan options for students with bad credit
Updated on October 26, 2019
Though everyone aims to have good credit, this isn’t always realistic. When it comes to paying for college, if you have bad credit it is still possible to qualify for student loans. Your best option may be to apply for a federal student loan. It is not necessary to have good credit to get one, because federal loans are offered to those who need financial help the most.
Federal loans are among the easiest types for students to get, but the only downside is that the loan rate is generally higher for those with bad credit. However, low-interest rate loans that you may be eligible for include subsidized direct loans. When you get a subsidized loan, the government covers the interest charges on the loan, so that you don’t need to.
Though it is more difficult to obtain, a private student loan is also an option. This kind of loan can only be obtained by having someone co-sign it with you. The co-signer can be anyone you choose, but he or she must have good credit in order for you to get this loan.
Private student loans also give you the option of deferment. With a deferment option, you will be temporarily relieved of your student loan payments if you encounter financial problems you didn’t originally anticipate. When the financial problem is resolved you are then responsible for student loan repayments again. However, it is not uncommon for interest to add up, leaving you to pay more on your student loan than you had anticipated.
Direct unsubsidized loans
At any point during your college career, you may be able to get a direct, unsubsidized loan. There are different borrowing limits depending on what year you are in, and this extends to graduate school as well.
Having bad credit doesn’t have to stop you from attending college. Obtaining one of these student loans is something almost anyone can do. You just have to work for it and use it wisely.