Don't Cheat Yourself of Your Future
The importance of an education is undeniable and fortunately there is a growing number of individuals who want to continue or go back to school.
A discernable lack of formal education or skills limit a person's options for employment, and in this tough economic time even university graduates are competing for jobs.
Give yourself the best possible chance for success by completing college. Invest in yourself and your career, don't let a bad credit history stop you.
Easy Financing Opportunities for Students
Inspiring stories about school dropouts who created success in their careers have circulated but literacy and an applicable education provide you security because of the marketable skills you have developed.
The advantages of a college degree are numerous, and not limited to more job opportunities and increased chances of working with a well–paying company.
If you do not have the financial means to pay for your schooling, you have a right to be concerned.
"A variety of amazing programs exist to help you pay for a world-class education..."
The truth is, however, today's students can take advantage of private education lending as well as get money from whatever federal financing is available to them. There are a number of scholarships, financial aid, grants (gov. and private), and even student loans for bad credit which can help you pay your university tuition.
Unlike lending though, private as well as federal scholarships and grants have certain academic performance hurdles and financial status requirements that must be met in order to maintain eligibility.
Education lending offers an alternative where the only qualification for approval is one's credit score and financial history. It is important to remember that these ARE loans, and will need to be repaid in the future, typically repayment beginning following the cessation of attending school.
For someone who does not meet the scholarship requirements for the amount needed to fully pay for tuition, getting financing is the next option. Grants should also be considered to help offset the costs of attending your college.
Don't let your financial history prevent you from attaining financing to pay for college. We've seen it all, and you are not alone... Bad credit student loans without cosigner requirements are available, and there exist a number of federal programs designed to help you meet the costs of college tuition.
The truth of the matter is that the education lending is very competitive, and to get your business lenders offer a variety of programs, hope is bright for you, as you have options.
Government Guaranteed Student Loans
The following financing options are ideal for people with poor credit:
The Federal Perkins Loan. This program is subsidized by the government and is available depending on the needs of the borrower. The repayment period is 10 years which commences on the 10th month following graduation. The period in between is called the grace period. A fixed interest rate of 5% is applied to the repayment amount for the period up to the loan being fully paid off.
The Perikins loan amounts that can be borrowed depends on your level of study, the costs of the college you are attending and whether you are attending at undergraduate or the graduate level.
One feature of the Federal Perkins Loan is the option to exercise the Federal Loan Cancellation program. This is offered to teachers to incentivize education in certain fields that are in short supply.
The loan cancellation program does not mean you get to borrow for free but rather a percentage of your loan money is forgiven of the total lent amount per year.
The Stafford Loan. Open to students who want to pursue their studies in accredited institutions and is the most common financial aid program encountered. It is fully guaranteed by the US government but the requirements for eligibility are carefully considered. For an applicant, completing the FAFSA form is required.
FAFSA (Free Application for Federal Student Aid) is a form providing an applicant’s financial information for eligibility under the program. Based on an applicant’s financial needs assessment, the loan granted can either be subsidized or unsubsidized by the government.
The FAFSA application gives an assessment of the financial resources you and your family possess and it is taken into consideration when shaping the loan offer you will be made.
A subsidized Stafford Loan is one where the interest on the loan is paid for by the government in contrast to the unsubsidized loan where you will be liable for the cost. Federal financial aid can be used by people with low scores as it is not a requirement for qualification.
The interest rate is typically low but recent changes have been made to the program so it is important to review your lending offer before acceptance. It is best for a qualified applicant to know the current interest rates.
Stafford lending requires payments to start on the sixth month after the student graduates which is the grace period. If you return to school, you can stop payments again until on an outstanding balance with a loan deferment. For subsidized loans, payments including the interest amount should be paid together with the principal after the grace period.
Unsubsidized Stafford Loan interest rates charges accrue through the life of the loan made to the borrower. Deferment, which means, not paying the interest while a student is currently enrolled, is offered for unsubsidized lending as well as subsidized Stafford loans. Any unpaid interest until graduation is included in the total amount for repayment following the grace period.
The Federal Direct Student Loan Program. This financing is wholly supported by the government where the lender is the Department of Education. The terms and requirements for the aid are based on financial need and comes with a low interest rate. The Federal Direct program is more concerned with your family's income level than with a applicant having a bad financial past..
An applicant can contact the Department of Education for further information regarding offered fees, rates, repayment terms, qualification standards and costs.
Parent Loan for Undergraduate Students (PLUS). This can be very helpful for a student with a bad history because the parent applies for the loan on the your behalf as a cosigner of sorts taking into consideration their credit and bypassing your need to qualify personally. PLUS loans make parents be solely responsible for repayment which starts immediately. In the event of a failure to pay, it is taken against the parent’s credit rating.
These are different from a co-signer loan because the parents, not the graduate are accountable for repayment of the student loan.
Private Student Financing for Bad Credit
Private Student Loans. These include various lending for students which are guaranteed by the school. Instead of having the funds given to the students, the tuition money is disbursed directly to the school. These are known as school–channel financing.
There are a variety of private lending programs with qualification standards and borrowing terms all depending on the lender - within regulated lender guidelines.
Direct–to–consumer private loans on the other hand fund direct to the student rather than the school. The interest rates on bad credit personal loans of this type are variable and higher than those offered by the government subsidized education lending options. These lenders will also commonly require an origination fee charged to the borrower at the time of application.
Non–Credit Based Student Financing. These are offered direct to students like those who enroll under medical primary care or study programs looking for recruits. This lending is issued with repayment expected not with money but through service following graduation in the selected field of study.
College Grant Money To Reduce Tuition
Pell Grants. These are a form of financial aid that does not require repayment but instead are gifted. The amount of the awarded grant is dependent on factors including financial need, costs in completing one's education at the selected school, enrollment status, and the enrollment period.
The above are just some of the means students can get financing for their education costs. Finding the best student loans for bad credit can be a matter of stitching together a number of small personal lending offers, scholarships and grants. Because these are need–based, what you should consider is what the financing requires of you and if it meets your unique needs.