How To Find Student Loans With Poor Credit

People with poor credit need educations too.

If you’re in that situation, we can help. We don’t actually provide the loans but can provide you with the advice you need to get help paying for your education.

The best poor credit student loans are the ones that are backed by the federal government. There are three loans that the government backs and all three of them are pretty dang awesome. Here’s a little information on each of them.

Perkins Loans

These are by far the best loans for students with poor credit. They have lower interest rates than almost any loan out there and you don’t have to make your payments while you’re in school. You actually don’t even get charged interest while you’re in school and that’s pretty amazing. The federal government takes care of the interest while you’re still studying and you will take that and the payments over six months after graduation.

Perkins loans are given based on need – your credit isn’t part of the qualifying process. If you have other avenues to pay for your school (like your own money or parents with money), Perkins loans won’t be available.

Subsidized Stafford Loans

These loans are very much like Perkins loans, with slightly higher interest rates. The government backs these loans and takes care of your interest while you’re in school. They are also awarded based on need and credit isn’t a part of the process. If you are having a lot of difficulty paying for school, these loans are a great option. There are limits to how much can be borrowed via this loan type.

Unsubsidized Stafford Loans

These loans are also backed by the government but are NOT based on need. Almost anyone can qualify for these loans as credit is not part of the qualification process. The government doesn’t take care of the interest with these loans – that is left up to you. There are two basic ways to pay when you take out this type of loan:

1. Make payments while you’re in school. This is honestly the best option so that you aren’t paying too much interest. If you opt to not make payments while you’re in school, the interest that accumulates while you’re in school becomes principal when you graduate. That means that you’ll be paying interest on interest at that point.
2. Wait to make payments until after school. Don’t use this option unless you’re desperate. If you opt for this option your interest will accumulate and be added to the loan. When you graduate the loan principal will be recalculated and the loan will start over.

You apply for each of these three options by using the same method. You fill out a FAFSA (free application for Federal student aid). This form will gather the information necessary to determine your eligibility. You will have to provide information relevant to your income, and then income of your parents in certain situations.

No matter what anyone tells you, these are the best student loans for poor credit. Any kind of private loan will certainly cost you a lot more in the long run.