Student Loans Are Available to All: Even with Bad Credit

With the economy in a sorry state these days, more and more adults are finding it necessary to retrain for new jobs or go back to school to finish their degree. If you have lost your job due to the current economic conditions, you are not alone in wanting to go to college, and really doing so is one of the best choices you can make for your future. However, if you have bad credit, the prospect of finding a student loan may be a bit daunting. Is it even possible to get money for school if you have poor credit? Simply put, the answer is yes. This article will take you through the options for getting a student loan no matter your credit score.Federal Money Is There for EveryoneMany people have heard of federal education funding, be it through political debates or their school’s financial aid office. The two most commonly given federal loans for school are Stafford Loans and Perkins Loans. Both of these programs are designed to get potential students into a classroom setting regardless of their credit history.The Stafford Loan is the most common of the federal loans and it is granted without even going through the credit check process. In fact, everyone who goes to college can qualify for a Direct Unsubsidized Stafford Loan. Depending on need, you may also qualify for a Direct Subsidized Stafford loan which does not accrue interest until after you finish school. Stafford Loans are given in any amount between $5,500 each year for first year, dependent students, to $20,500 each year for those attending graduate and professional school. Stafford Loans are given to you direct from the United States government and come with a low, fixed interest rate.Perkins Loans are another option for those in especially tough financial positions. This loan option also does not take credit into account. The federal government will use the information on your FAFSA form to determine whether you are eligible for Perkins Loans.These loans also carry a low, fixed interest (actually lower than both Subsidized and Unsubsidized Stafford loans). However, they are also highly competitive. While anyone can get a Stafford Loan, the money reserved for Perkins Loans is limited. Therefore, you need to make sure that you get your financial aid forms in early in order to get these funds before they are gone.Additional OptionsIf you cannot get all the money you need from Stafford Loans and/or cannot qualify or receive a Perkins Loan, there are other options available to you as well. Private lenders who specialize in student lending can provide you with loan packages called Student LoansSupplements or Student Loan ConsolidationsSimilar to federal student loans, if you use a private lending option you can defer payments until after you finish school (and therefore earning more money). The lenders who specialize in these bad credit student lending packages will likely explain the different qualifications that you must meet in order to get their loans. Generally, you will need to undergo a credit check and you will likely need to pay a higher rate of interest if you credit is bad. However, private lenders, like the federal government, understand the need for education and will do their best to help you meet your academic goals.