Getting Aid When You’re A Student With Bad Credit
Are you getting ready for college? If you are, you may be worried about getting financial aid, especially if you have bad credit. There is hope, there are many different programs available that allow people with bad credit to get loans and grants. You simply have to know where to look.
Federal Stafford Loans and Perkins Loans are two loan options. Pell grants and various types of scholarships and grants all are options as well for a college bound student with bad credit.
Out of all of the loans that the government offers, Stafford loans are the most commonly used. They are available based on the need of the applicant, as determined by the school they are attending.
Subsidized Stafford loans are only given to those who are financially needy and therefore qualify for the loan. If you are awarded a subsidized Stafford Loan, the government will take care of the interest accrued on the loan while you attend school and for the first six months after you graduate.
Unsubsidized Stafford loans are given to anyone who wants them, but are somewhat different than the subsidized version. The funds that can be taken are somewhat smaller then the subsidized version and the federal government doesn’t pay for the interest that builds up.
Perkins loans are also available for students that have bad credit. Perkins loans are harder to qualify for in that you must have more financial need than those who can qualify for Stafford loans. You can qualify for Perkins loans even if you have a bad credit history.
Those that have bad credit can also qualify for federal grants such as Pell grants. These grants are given based on your income, and sometimes be the income of your parents. They vary in size according to the needs of the applicant.
Since Pell grants are a reward from the federal government, they don’t need to be paid back. Not everyone can qualify for them, but those that can should definitely get them, even before they take out loans. Credit history is not considered for the grant approval process.
