Many people and potential students with bad credit often wonder if they are able to get student loans. Bad credit loans are available in many cases, but often come with a high interest rate, yet when it comes to student loans, bad credit won’t stop you from getting financial aid.
Many students that get loans for college are just out of high school and have no credit history. Oftentimes no credit is worse than bad credit, so getting a student loan to pay for the costs of college isn’t necessarily a bad credit contingent situation.
Federal student loans, subsidized and unsubsidized, rarely take a credit history or credit rating into account as federal student loans often set caps on the amount a student can borrow. First year college students get the least and the amount will increase the longer you are in school, since it seems in the eyes of a student loan lenders, that you are serious about getting an education.
Anyone looking to get a college degree will first want to exhaust their options for scholarships and grants before turning to student loans, but bad credit is never something that should stop a prospective college student from getting an education even if student loans are the only option of paying tuition.