Does this question sound familiar, “Is it possible to get student loans with bad credit?” This is a fairly common concern among students and families who are seeking financing to help pay for college. Most often, this question surfaces when there is a rude awakening that grants, scholarships and federal education loans may not be enough to cover as many college costs as expected.
These days, most traditional students, enrolling in college immediately after graduating from high school, have a “thin” (fairly short) or non-existent credit history. If they have a credit history, it may not be strong enough to qualify for a credit-based student loan. So, how can you qualify for a student loan with bad credit? Among the opportunities for students and families to consider while in-school are the following:
Types of loans that do not require credit
One solution is to find a student loan that does not require a credit check or cosigner, such as the Federal Stafford Loan (including the Direct Subsidized for undergraduates and Unsubsidized Loans for undergraduates and graduates, as well as the Federal Perkins Loan (for both undergraduates and graduates). These federal student loans do not consider the borrower’s credit history or credit scores.
The Federal Parent PLUS Loan and Federal Grad PLUS Loan do involve a modest credit check, which looks for the absence of an adverse credit history. Eligibility for the Federal PLUS Loan does not, however, depend on the borrower’s credit scores or debt-to-income ratios (the ratio of a borrower’s total debt to the borrower’s annual income). Lire la suite