College students may have seen their credit score drop due to a variety of reasons or they may simply have no credit history which might disqualify them from borrowing certain types of loans. However, many college students worry that this bad credit score they may have acquired will prevent them from obtaining the student loans they may need to pay for their college education. Yet, there are student loans available for individuals with a bad credit score.
Usually, student loans will fall into two categories, private or federal, and both of these loan sources can be a great way which a student can supplement other financial aid or simply meet the cost of their college tuition. However, private student loans often will require a credit check and this may either disqualify someone from borrowing a student loan from a private lender or there may be a high interest rate associated with this type of college loan for someone with a bad credit score.
Federal student loans, on the other hand, are often available to the majority of college students and can be acquired by anyone, no matter their credit score. Federal student loans can be more affordable, as they often have a very low interest rate, but they also have other factors in place that would prevent them from disqualifying a student who has a bad credit score from borrowing. For instance, the class rank the student holds in college will factor in as to how much money they can borrow as there are set amounts for the maximum limit of student loan aid one can obtain each year they are in school.
Many students will fill out a FAFSA form so that they can see what types of federal aid they may qualify for and this can lead students to not only student loans, but in some cases federal student grants. While federal student loans, again, can be very affordable when it comes to interest rates and repayment plans, there are various ways in which a student loan repayment schedule can be tailored to fit into almost any one’s income.
It is often advised though, that students should seek out scholarship and grants before turning to student loans. While a bad credit score may not disqualify someone from obtaining a federal student loan, being able to exit college with little or no student loan debt is going to be more beneficial for someone with a bad credit score, especially when it comes to getting out of debt and building a good credit history. In some cases, scholarships and grants can meet the majority of college costs and can lower the amount that one must borrow, so before turning to bad credit student loans, those entering college should try to find as much financial aid from other sources outside of loans as they can.