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Bad Credit Student Loans

Do not feel like you are the only person in the world who is struggling with bad credit and needing a student loan.  The term "Bad Credit Student Loans" is searched several hundred times a day.   That simply means their are plenty of other college students in your shoes and many of them have graduated from college.  We have plenty of student loan secrets up our sleeves to help you and they all come from our own personal experiences. Make sure and read our "Alternate Bad Credit Student Loans" section.

Here are Two Important Secrets for Bad Credit Student Loans  

1.  Do not let bad credit stop you from pursuing your dreams.  Start working on repairing your credit even while you are at college.  The easiest way can also be the most vicious trap you could ever walk into, if you are not disciplined.  This link 5 simple and easy steps college students can follow to repair their credit report before they graduate) will show you what we are doing for to help our son who has found himself in a mess.

2.  If you don't have a source of income or not willing to get a part time job, stop reading now.  Because you are a bad risk and most creditors will walk away from you.  Give them an strong reason why they should support you and show them you are willing to "walk the walk" and not all talk.

4 Steps you should have already completed when applying for  "bad credit student loans".

1.  FAFSA, submit a free application online ASAP.  Read more about FAFSA

2.  Once you receive your SAR (student aid report) seek these bad credit student loans first

3.  Stafford Loans- specifically unsubsidized (usually you only receive partial monies and that was our case as well.)

4.  Applied for a Perkins loan -government subsidized student loans that requires no  credit check. Perkins loans are based on a first come first served basis.  Get your application turned in quickly so you can be one of the first to get the loan.

All 4 of these principals are explained in much greater details on our home site: Student Loans Secrets

***Student Loans Secrets***

Keep applying for student scholarships.  A lot of people think for whatever reason that scholarships and grants are only for high school graduates.  That is far from the truth. Discuss your options with the financial aid advisor at school.  They will guide you towards the best places for you to apply and the most successful grants and scholarships.

If you did not have any luck getting these student loans the next obvious and easiest solution is finding a co-signer.  Using a co signer will instantly give you good credit providing they have a good credit report.  

Who could be your co-signer?

  • family
  • relatives
  • friends

To help you make the sale to a co-signer tell them you will be looking for a student loan repayment schedule that allows the co-signer to be dropped from the loan after you have made several on time loan payments.  These types of repayment student loans allows you to break free from your co-signer ad allow you to start repairing or building your own credit report.

Remember, the co-signer is vouching for you and telling the lender that you are worthy of repaying the student loan and that is why they will sign promissory note on your behalf.  If you default the repayment of your student loans falls on their shoulders.


Alternative Non-Credit Based Loans

Many different programs in various educational fields offer specifically designed student loans in exchange for your time commitment.  The nursing field is a very good example.  If you qualify for one of their nursing student loans program, they will wave your payments if you are willing to work in one of the areas of the world that are short on nurses.  The time commitment will vary but rest assured you never have a loan repayment.

Another option is a loan for disadvantaged students. The department of Health and Human Resources sponsors loans to students who fall into this category.  The loans are awarded to students regardless of their credit score and you can expect a low interest rate.  To apply for these loans you will need to visit your financial aid office and speak to your advisory.

Credit based private student loans is probably going to be the absolute toughest student loan you can find.  Private institutions like banks and savings and loans have to be accountable to their shareholders and they hate taking on risks.  If they do take on a risky loan their fees and interest rates might eat you up.  Without a cosigner who has a great credit rating this loan will probably be out of your reach.  However, if this is your only option discuss it with a financial aid councelor, parents before you visit a private institution.  Two companies that you might want to consider is Chase and Astrive.  Do a search and look at the options they provide for students with bad credit.

Similar to the nursing or medical field teachers might also be able to secure a bad credit student loan in exchange for teaching so many years in specific area.  If you stay long enough they will wave your student loans, but tread lightly these places can be some of the most difficult teaching situations in America.  And the last thing you need as a new teacher is teaching students who care less if they graduate or not.

Sallie Mae offers a student loan program they call "Career Training Loan". This alternative loan offers some really good features and the most important aspect is that you don't have to have a perfect credit score and students with no credit history are still eligible.

It's not a bad credit student loans, but it could possibly save you a ton of money and that is called Pell Grants.  These grants have helped millions of students in financial need.  With a grant there is absolutely zero credit check and you don't have to pay it back.  It is designed for low income students which makes it limited but if you have bad credit, you're probably an independent so you should ask and apply for a Pell Grant application.

Now you have enough information to help guide you down the right path. We were fortunate to secure both of the Stafford Loans. My nephew who was late on several payments had to consolidate his loans and he is making payments in the neighborhood of $500+ per month.  

The only advice we can give you when it comes to bad credit student loans is, there is a bad credit loan waiting for you, just get out there and find it. And once you graduate MAKE YOUR PAYMENTS and never be late.  My nephew found out the hard way and I don't want to see anyone go through that again.

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