| College is expensive, and many students use financial | | | | bank or credit union will examine the applicant's credit |
| aid to pay for tuition, books, and other | | | | history. Since most private lenders offer bad credit |
| education-related expenses. Student loans are the | | | | student loans, the purpose of a credit check is not to |
| most common type of financial aid. With so many | | | | approve or deny the loan. Rather, a credit check |
| loan programs available, there is more than one way | | | | helps the lender determine the level of risk. |
| to find money for school. Whether you have good | | | | Depending on the severity of bad credit, the interest |
| credit or bad credit, banks, credit unions, and Federal | | | | rate on the student loan will be either comparable to |
| loan programs offer packages to fit every need. Of | | | | other loans or much higher. |
| course, if you want to maximum your loan choices, a | | | | Federal Loans for Students with Bad Credit |
| good credit history is imperative. While bad credit will | | | | Since private lenders offer higher rates to students |
| not disqualify a student loan applicant, bad credit | | | | with bad credit or no credit history, many students |
| student loans come with steep penalties and higher | | | | turn to Federal Direct Loan programs for assistance. |
| rates. | | | | Federal loans such as the Federal Stafford and |
| Bad Credit Private Student Loans | | | | Federal Perkins are government programs developed |
| If you're looking for a bad credit student loan, many | | | | for students with bad and good credit. The Federal |
| financial institutions are able to help. Banks and credit | | | | government insures these loans; thus, bad credit |
| unions value education, and they realize that | | | | students can qualify for very low interest rates. |
| knowledge can lead to smarter credit and financial | | | | Although non-credit based Federal loan programs |
| choices. Student loans acquired from a bank or credit | | | | offer easy approvals, the loan amount per year is |
| union are termed private student loans because the | | | | typically small and may not cover all tuition expenses. |
| Federal government does not finance them. | | | | Students who need additional funds may have to |
| Consequently, private student loans have strict loan | | | | apply for a private student loan. In this case, |
| requirements. | | | | improving a low credit score can open the door to |
| Prior to funding a private student loan request, a | | | | better rates. |