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Bad Credit Student Loans

Are you concerned that bad credit will prevent you from going to college? While it is true that finding student loans with excellent interest rates is easier if you have a sterling credit rating, bad credit student loan aid is possible. For example, the most popular US Department of Education loan, the Stafford loan, assumes that most applicants will be going to college straight from high school, and will not have a credit rating yet. Therefore, Stafford loans do not even consider the credit rating a factor when it comes to qualifications. The same holds true for Perkins loans, which are federal loans designated for the neediest students. The only reason bad credit would interfere with these kinds of student loans are if you have defaulted on a federally granted student loan in the past.

Bad credit student loans can offer a second chance for those in need and especially for those who messed up their credit rating earlier in life but now understand the error of their earlier ways. Bad credit student loans are the extension of credit, of loans for college expenses, to those who would not normally qualify for loans, usually due to having made late payments or having defaulted on a loan in the past.

Students with bad credit taking loans may not seem as a very positive exertion in the first instance. With bad credit already haunting you, you perhaps don’t want to take a bad credit student loan. Many students are unable to pay for college education directly. It is unlikely that every person pursuing education has enough money for funding his education. Being in bad credit perhaps makes you even more suspicious of student loans. You might remark why get into financial aid procedure for education. It might happen that you cannot forage a sponsor or your parents cannot supervise your student expenses. You can’t simply leave this to your parents.

If you are okay with the possibility of a higher interest rate and/or having to find a co-signer, then your next step would be to search for a lender who offers student loans for students with bad credit. The following lenders will possibly offer bad credit student loans depending on your personal situation and circumstances. The best step to take is to apply to multiple lenders and see what the response is and make a decision based on the responses.

There are many factors that are affecting the American economy today. One of them is globalization and the outsourcing of jobs. People used to be able to get a stable, well-paying job with only a high school degree. Now millions of these jobs are offshore. Finding a profession that can support a middle-class standard of living that does not require a college degree is getting rarer and rarer.

One possible route out of this is getting a student loan. However, there are many pitfalls future students need to be aware of. First of, be totally aware of how much you will be paying and for how long. Many of the loans being signed today have variable interest rates. They offer a temporary low interest rate to lure in customers. Then the rates “balloon” after several years.
Student Loan Consolidation

Students, who are finding it incredibly difficult to repay the borrowed sum, can opt for student loan consolidation. Bad credit is again not a deterrent to procuring consolidation loans since these loans are available to borrowers who are delinquent or have defaulted on the student loans. Of course, there are certain repayment conditions, like three voluntary, on-time, full monthly payments, that have to be met in lieu of the borrowed sum in order to obtain a consolidation loan. Direct Consolidation loans and FFEL Consolidation loans are available for consolidating subsidized and unsubsidized FFEL and Direct Stafford Loans. Similarly, Federal Perkins loans can also be consolidated.

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