Student Loans For Bad Credit

Student loans for bad credit are available and accessible for people who are attending college and are in need of financing, but have little to no history with debt or a less than desirable history with debt. The Stafford program offers financing that anyone can obtain, regardless of debt history. A student loan for bad credit can help an individual gain an education, get a better job, and therefore eventually repair his or her borrowing history. The U.S. government funds this type of financing in the form of direct funding, also known as Stafford. Many students rely on this money in order to help finance their college education. A Stafford offers excellent advantages including simple qualification guidelines, very competitive interest rates, and flexible repayment plans. If a scholar is attending or planning on attending college, but are concerned that their poor repayment history (or nonexistent borrowing history for that matter) will keep them from qualifying, think again. "Labour not to be rich: cease from thine own wisdom. Wilt thou set thine eyes upon that which is not? For riches certainly make themselves wings; they fly away as an eagle toward heaven" (Proverbs 23:4-5).

Stafford financing is available and accessible to most scholars in need. Although there are a few requirements that a borrower needs to meet in order to obtain a student loan for bad credit, none of the requirements have anything to do with income or debt related issues. Stafford comes in two versions: subsidized and unsubsidized. The funds for the subsidized come directly from the federal government. The interest on these student loans for bad credit is paid (subsidized) by the U.S. government. Students pay the interest on the unsubsidized themselves, but they can opt not to pay anything until they have completed their schooling. To apply for one of these government sponsored programs, an applicant need to file the Free Application for Federal Student Aid (FAFSA) form. Although approval of the unsubsidized portion is not linked to financial need, the government still needs to get a completed form. 

One can find this form online or in the college's financial aid office. All lenders offer the same variable interest rate for Stafford financing and the rate is currently capped at 8.25%. However, a borrower may find it beneficial to shop around before signing a promissory note because some lenders offer slight discounts if, for example, the applicant agrees to automatic online payment withdrawal. In addition to student loans for bad credit through the Stafford program; many banks, credit unions, and other lenders offer supplemental, private programs that might be worth exploring. Don't let a history of poor financial decisions stand in the way of pursuing a college education. Instead, take advantage of a student loan for bad credit and plan for a better future! Attending college and preparing for the future is exciting. Be sure you plan the financing of a college education wisely. Speak with the college's financial aid officers and a tax adviser or accountant if there are any questions about qualifying for the myriad of programs available to scholars.