| It's that time of your life you've looked forward to | | | | interest rates, lower fees and more adaptable |
| for so long and here it is, right on top of you! You | | | | repayments there are some issues to resolve before |
| thought you'd be ready but suddenly, there's too | | | | committing to the loan. One is that there are limits as |
| much to do. Your wardrobe is set, you've got the | | | | to the amount that can be borrowed, and often that |
| perfect room and a best friend for a roommate, so | | | | leads to having to take out additional loans. Generally |
| what's to worry about? It's the money, honey. | | | | speaking, the maximum amount a freshman may |
| It's all about getting that school loan; your parents | | | | borrow is $3,500 and it's $4,500 for sophomores. This |
| are worried too because they're not loaded and their | | | | creates a problem for the parent or student seeking |
| credit's not the greatest, because they've had a little | | | | a bad credit student loan from a private company. |
| trouble getting loans in the past. And you don't know | | | | With the federal loans usually no credit check is |
| how much you can contribute to your college | | | | required but of course it is required with the private |
| expenses. Well, this certainly can be a stressful time | | | | loans. Therefore if an additional private loan is needed |
| for both you and your parents but perhaps we can | | | | and your credit score is unacceptable, which is usually |
| help assure you that a bad credit student loan can be | | | | anything under the FICA score of 6oo or sometimes |
| had if you know the right places to go. I'll tell you | | | | 650, either your application will be rejected or your |
| right up front, though, it may not be easy but it can | | | | interest rate will rise considerably. |
| be done. | | | | Thankfully there are other avenues to pursue rather |
| Yes, federal student loans are available and some | | | | than the private loans if the federal loans do not |
| banks, maybe yours, are planning to offer loans for | | | | cover all your costs. There is something called the |
| college beginning this next year, according to | | | | PLUS (parent loan for undergraduate students)loan |
| Consumer Bankers Association. While a poor credit | | | | that allows the student to borrow the full amount of |
| rating may make it more difficult to get a loan, do | | | | the cost, minus any other financial aid being received, |
| not be discouraged. In that particular situation, you | | | | with a fixed rate of interest. PLUS loans do not |
| probably will be better off to start looking to the U.S. | | | | require any FICA score, but they do insist on a good |
| federal government for a federal loan program; and | | | | credit history because they allow such a higher |
| there are many available. | | | | monetary limit than other loans, such as the Stafford |
| Many lenders are out there willing to provide loans | | | | loans. These loans aren't for people who have filed |
| through the federal student lending program. And | | | | for bankruptcy, but for others they bare looking into. |
| there are two loan programs geared especially | | | | The bright side is that if your parents are denied a |
| toward those with poor credit ratings. The federal | | | | PLUS loan your federal loan limits rise; check it out. |
| Stafford loan is available to all students as an | | | | We certainly have not covered all of the material you |
| unsubsidized loan, and to those in economic need as | | | | might need to pursue a bad credit student loan, but it |
| a subsidized loan. The interest rates for the | | | | is a beginning, hopefully to encourage you not to give |
| subsidized loan have been quoted as low as 3.6% | | | | up your dreams for the future because of your bad |
| and as high a 6.0%; for the unsubsidized loans, the | | | | credit rating. There are steps to take that will help |
| quotes are 4.2% and 6.8%. The other program, | | | | you to improve your scores and to help you get |
| designated for those with greater economic need,is | | | | your financial habits in order. Go online, check your |
| the federal Perkins loan, whose interest rate is | | | | credit scores, check out the Education dept web site, |
| quoted around 5%. | | | | and take advantage of all the valuable research |
| Although the federal loan programs offer lower | | | | available. |