Alternative Student Loans for Persons With Bad Credit

People with bad credit don't have to forgo a college education because there are a wide variety of student loans that don’t require a credit check available.

Stafford Loan

The first loan that any student should try to get is a Stafford Loan - the most popular kind of loan backed by the federal government. Since Stafford Loans are backed by Uncle Sam credit checks aren’t necessary. The way to apply for such a loan is to fill out the Free Application for Federal Student Aid which is available online.

The amount of money awarded by Stafford Loans is low so students will have to augment Stafford loans with funds from other sources. Stafford Loans are a valuable resource for those whose education costs are low and persons going back to school for a limited time.

Perkins Loan

A Perkins Loan is a loan of $1,000 to $4,000 that is backed by the college itself. Perkins Loans are usually given to students who can prove financial need. As with Stafford Loans the amount made available isn’t that great but it will cover some college costs. One big disadvantage to Perkins Loans that you have to start paying them off with nine months of graduation.

The way to increase your odds of getting a Perkins Loan is to fill out the Federal Application for Federal Aid as soon as possible. Colleges award these loans on a first come first serve basis so applying early increases the odds of getting one of these loans.

Many state governments also loan money to college students. The state loans are usually only available to residents of the state who qualify for them. Students who are attending a state college in their home state should check with their state governments to see if such loans are available.

Pell Grant

Every US student should check to see if they are eligible for a Pell Grant. A Pell Grant isn’t a loan it’s a direct cash payment the federal government makes to needy students. The great advantage to the Pell Grant is that you don’t have to pay it back. No credit check is required when a person applies for a Pell Grant.

Another way a person with bad credit can get a student loan is to find a cosigner. A cosigner is a person who agrees to pay the loan off if the borrower can’t. A cosigner with a good credit rating maybe able to help a person with bad credit get a student loan.

There are also a wide variety of alternative loans for people with bad credit available online. These loans pay for both traditional college and career training.

Students with bad credit should also check to see if they are eligible for any scholarships. Scholarships provide money for college, they don’t have to be paid off and they don’t require a credit check.