| If you have bad credit and want to obtain funds to | | | | loan offered by the US Department of Education. |
| go to a college or university, you can. There are | | | | The Perkins Loans carry a fixed interest rate of 5% |
| several options available for you to get the funding | | | | for the duration of ten-year repayment period and a |
| you need to attend two and four year college and | | | | nine-month grace period, so you start the repayment |
| university programs. Of course, finding student loans | | | | in the tenth month upon graduating. |
| with very good interest rates is a lot easier if you | | | | On the other hand, the Stafford loans are available |
| have good credit rating or credit scores, education | | | | both as subsidized and unsubsidized loans. The |
| funding for those who have bad credit rating is still | | | | interest on subsidized Stafford loans is paid by the |
| possible. | | | | federal government while the student is in school, |
| The most popular student loan is known as the | | | | however, student will still have to pay off the |
| Stafford loan, available directly through the US | | | | principle or total amount of the loan after graduation. |
| Department of Education. Why is this type of federal | | | | For unsubsidized Stafford loans, there is an interest |
| education loan so popular? The answer is because it | | | | and students are responsible to pay all the accrued |
| doesn't consider credit rating as a major factor to | | | | interests while they are enrolled in school. The |
| qualify for a loan. The Stafford loan assumes that | | | | interest may vary and is determined on the date the |
| most applicants going to college straight from a high | | | | loan was approved (it's roughly 4-5%). |
| school and hence would most likely not have a credit | | | | For students with bad credit or poor credit rating, |
| rating yet. | | | | obtaining student loans through private lenders may |
| However, if you have defaulted a federal education | | | | not be a good option as they would often charge |
| loan before, then to qualify for the Stafford loan can | | | | very high interest rates, have poor payment plans |
| be very difficult as they will start checking your | | | | and high penalties. The best option for bad credit |
| credit rating very carefully. | | | | student loans is therefore the federal education loans |
| Another good option for bad credit student loans is | | | | as they are not based on your credit rating to qualify. |
| the Perkins loans, it's a subsidized federal education | | | | |