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Bad Credit Student Loans

Receiving a college education may be the single most important accomplishment that one may achieve in their entire life time.

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Bad credit student loans allow an increasing number of students to attend postsecondary education institutions annually. With college costs rising 5.9 percent from the 2007 to the 2008 academic school year according to the College Board, the number of students facing financial constraints during their college years will proportionally increase as well. According to the United States Government Accountability Office, the average college student owed $2,748 in outstanding credit card balances, and out of all college students, a rising 78% owned at least one credit card.

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The FDSLP offers their entire range of loans without performing credit checks on students or their parents. Although the application for these loans, the FAFSA form, ascertains numerous aspects of current assets and income for parents and their collegiate dependents, not one piece of credit history information is requested nor is it necessary. In fact, FDSLP loan application eligibility is rather easy to qualify for most students.

Guidelines for eligible bad credit student loans offered by the federal government include:

• Possess U.S. citizenship or status validating as eligible non-citizen
• Enrolled in participating college, university, or vocational educational program
• Possess high school degree or GED equivalent by beginning of first postsecondary term
• Enrolled with Selective Service for applicable male students
• Maintain degree of reasonable academic standing
• Attend aforementioned participating program with at least half-time status
• Not be in default with any Federal Student Loan Program

Rising credit card accessibility on college campuses, coupled with rising costs of living and academic expenditures, leads many students to delve deeper and deeper into credit card debt until immediate remedy of the situation proves unattainable. For students facing the prospects of forced withdrawal from postsecondary institutions due to insurmountable credit card debt and lacking funds for the upcoming academic term, there are bad credit student loans available, and interestingly, the loans bad credit student loans available from the United States government offer the premier interest rates currently available to the lending market.

The loans offered by the FDSLP, which are Stafford Loans, Perkins Loans, and Graduate PLUS Loans, provide students with funding based on an economic need-analysis. Every student meeting the aforementioned guidelines is awarded an unsubsidized Stafford Loan; however, fiscally less advantaged students receive the option to take out subsidized Stafford Loans and Perkins loans. With these two subsidized loans, the Department of Education pays accrued interest amounts on the loan while students remain in school and during a six-month grace period following graduation.

There is also a host of other loan options available to students with poor credit ratings besides the FDSLP offerings. One option for students is through the FFELP program, which offers federally insured student loans through private lenders. Due to the 97% insurance rate on these loans from the U.S. Department of Education to participating private lenders, lenders prove more likely to lend to students with blemished credit records. Another option through private lenders, although in this regard completely unaffiliated with the Department of Education, is basic loans with a creditworthy cosigner backing the loan from banking institutions. Cosigner or cosigners possessing acceptable lending history and repayment habits mitigate the adverse risk lenders avoid by declining loans to persons with bad credit.

Sallie Mae, along with various other university affiliated lending organizations, offers students various forms of credit repair and counseling assistance. With this assistance, students can rectify any obtuse credit history and retain the lending funds necessary to promulgate further education. As the axiom seems to prove itself repeatedly, any money invested in personal college education is probably the best investment an individual can make, and in the same regards, investing time and effort into garnering the capital necessary to fund postsecondary education is vital.

Do you need to apply for bad credit student loans?
Apply for bad credit student loans today.