| Are you concerned that bad credit will prevent you | | | | intended to cover the amount that the parent is |
| from going to college? While it is true that finding | | | | obligated to contribute toward college costs. |
| student loans with excellent interest rates is easier if | | | | Federal funding is a good choice for a bad credit |
| you have a sterling credit rating, bad credit student loan | | | | student loan because they are specifically designed to |
| aid is possible. For example, the most popular US | | | | help make college more accessible; therefore, their |
| Department of Education loan, the Stafford loan, | | | | requirements are much looser than those of most |
| assumes that most applicants will be going to college | | | | banks and other lending companies. However, if you |
| straight from high school, and will not have a credit | | | | are unable to secure a US Department of Education |
| rating yet. Therefore, Stafford loans do not even | | | | student loan, you may need to turn to private loans. If |
| consider the credit rating a factor when it comes to | | | | you are planning to graduate in a field with a high |
| qualifications. The same holds true for Perkins loans, | | | | earnings potential, like law or medicine, you might have |
| which are federal loans designated for the neediest | | | | a better chance of receiving a bad credit student loan |
| students. The only reason bad credit would interfere | | | | from private lenders. |
| with these kinds of student loans are if you have | | | | None of these choices are either/or possibilities, by the |
| defaulted on a federally granted student loan in the | | | | way. You may be able to put together enough money |
| past. | | | | to finance college through a combination of any or all |
| Bad credit student loans are also possible if your | | | | of the above types of loans. Moreover, even if your |
| parents have better credit than you do. In this case, a | | | | bad credit student loan is at a very high interest rate, all |
| PLUS loan, which is granted to parents and not to the | | | | is not lost. Many student loans defer payment until you |
| student, might be the way to go. US Department of | | | | have finished college, giving you time to improve your |
| Education student loans (like Stafford and Perkins | | | | credit rating. At that point, you might want to look into |
| loans) assume that the parents will pay for a certain | | | | ways to consolidate your student loan at a better rate, |
| amount of their children's schooling; PLUS loans are | | | | lowering your payments to a more affordable level. |