Author Box
Articles Categories
All Categories
Articles Resources

Student Loans With Bad Credit: You Can Get a Loan for School With Ease

February 27, 2012 | Comments: 0 | Views: 165

When people who have bad credit fall on to hard times, it is natural for them to want to try and earn more money through retraining and getting a new job. However, that means going back to school, which costs money they clearly do not have. With bad credit, finding a loan to pay for school may seem like an impossible task. However, the rules that apply to typical loans, such as auto loans and home loans, do not apply to student loans. Once you familiarize yourself with the options available, the prospect of finding money to pay for school will be a snap.

School Loans Are Different

When people sit down with a lender to try and get a loan they are often subjected to a thorough run-down of their finances. This includes looking at past behaviors and current debts in the form of a credit check. When you have a poor credit score, this is the step where the lender rejects you. Basically, the idea is that if you have too much debt and/or a bad history of repayment, giving you another loan is a recipe for disaster.

School loans are different, though. When you are applying for money to fund a higher education, you past behavior does not come into play. This is because money for school is considered an investment. By giving you cash now, a lender invests in your future ability to pay. By getting an education, hopefully, you can get a higher paying, more secure job which will enable you to repay your student loans and improve your bad credit.

Because of this, student loans are calculated based on an entirely different scale: need. The less money you have the more money a lender will offer you in the form of student loans.

Low, Fixed Interest Rates

In addition to allowing you to borrow money with bad credit, student loans also come equipped with low, fixed interest rates from the federal government. This means that the interest you pay (generally around 6.8%) will remain steady through the life of your loan, regardless of your bad credit.

To get these low interest student loans, you need to fill out a FAFSA or Free Application for Federal Student Aid. This form is usually included with your college applications, but can also be obtained through the Financial Aid office of your school.

Repaying Your Loans Can Wait

The final benefit of student loans is that they are deferred. This means that as long as you are in school taking a minimum of 6 credits during each semester, you will not need to repay your loans. Once you graduate you are given a grace period of 6 months where you have the ability to find a job that will support your loan repayment. In this way, student loans allow you to focus on what's important: your education.

Long-Term Benefits and One Major Caveat

By taking the opportunity to go back to school and get a higher paying job, you are setting yourself up for the long term. The bad credit you have today will disappear once you earn enough money to support your debts and obligations. However, there is one, important caveat to remember when taking student loans: they never go away. In order to justify extending loans to those with bad credit, the federal government will not allow student loans to disappear through bankruptcy. This means, no matter what, you will be obligated to repay this money.

Therefore, when taking a student loan with bad credit you need to make sure that you are really serious about finishing your education and changing your life. The long term benefits are truly well worth it though.

Joycelyn Crawford is the author of this article. For more information about Easy Loans for Bad Credit and Easy Home Equity Loan please visit

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Bad Credit Student Loan


Guaranteed Student Loans With Bad Credit


No Credit Student Loan


Fast Money

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 560

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 303

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 289

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 301

Learn how to take advantage of the student loan forgiveness programs available to teachers. There are great benefits involved such as lower monthly payments.

By: Stephen Bisl Finance > Student Loansl April 24, 2012 lViews: 155

Whether you find yourself in the process of taking out loans or the process of paying them off, its imperative that you find ways to push back on the impending financial tsunami heading your

By: D. A. Bisl Finance > Student Loansl April 22, 2012 lViews: 183

How much will College cost? Where will we get the money? Borrowing from Permanent Life Insurance for college.

By: Walter Sewardl Finance > Student Loansl April 15, 2012 lViews: 179

An Article recently published by the International Business Times explored the potential for problems associated with aggregate student loan debt.  Since the total student loan debt outstanding

By: Doug Utbergl Finance > Student Loansl April 12, 2012 lViews: 187

You saved every penny you earned, worked like a slave, and even asked for help from friends and family. But that was not enough; you still need to know how to earn money for college tuition.

By: Luis Garcia De Alba Diazl Finance > Student Loansl April 11, 2012 lViews: 155

The option to further one's education is far greater today than ever before. There are good programs set up to help students and their families, which almost anyone can qualify for. Those who qualify

By: Angela Goldstein-Meyerl Finance > Student Loansl April 11, 2012 lViews: 175

Military members are offered an additional lending tool known as a military loan. These loans are offered in amounts up to $20,000 and even those with bad credit can qualify under certain conditions.

By: Joycelyn Crawfordl Finance > VA Loansl July 02, 2012 lViews: 139

Getting a mortgage loan with bad credit is not so impossible. There are many factors that lenders use to determine who gets a loan and credit is not the most important among them.

By: Joycelyn Crawfordl Real Estate > Mortgage Refinancel June 10, 2012 lViews: 171

Borrowers with bad credit can get a $10,000 personal loan. However, to achieve this goal, these borrowers need to consider more than the simple factor of need, but also look at the purpose of their

By: Joycelyn Crawfordl Finance > Personal Loansl March 14, 2012 lViews: 142

With bad credit, the chances of getting approval for auto or even military loans can be reduced greatly. But with no credit check loans, the issue of low credit scores is removed from the equation.

By: Joycelyn Crawfordl Finance > VA Loansl March 05, 2012 lViews: 134

The lending market has changed substantially from what it once was. Today, getting a loan with bad credit is possible through payday loans, which have no credit check and provide fast cash relief.

By: Joycelyn Crawfordl Finance > PayDay Loansl February 27, 2012 lViews: 216

If you have bad credit you may feel that the option to refinance your mortgage is not available to you. However, if done correctly, refinancing your mortgage can pay off for you in the end.

By: Joycelyn Crawfordl Real Estate > Mortgage Refinancel February 22, 2012 lViews: 117