Student loan rates for bad credit student loan’s and traditional college loans from private lenders may offer options for student borrowing as both federal and private sources can not only meet the needs of bad credit student borrowers but traditional borrowers as well. The cost of tuition, fees, and books has become quite expensive at many colleges across the nation as there have been reports stating that public college tuition is on the rise, and obviously, private college tuition has remained as expensive as ever.
Yet, students who are in need of student loans often are unsure of how to go about borrowing, the amount they should borrow, or whether federal or private borrowing is in their best interest. While there are both private and federal student loan options available, students who may have a bad credit score, as an example, may want to stick with federal student loans, while other traditional students do have options when it comes to borrowing for college.
Federal student loan interest rates in 2011 are still quite affordable as it’s been reported that subsidized Federal Stafford Loans are around 4.5% while unsubsidized rates have held around 6.8%. Understandably, federal student loans have been quite popular as many students fill out a FAFSA form each year and can not only gain opportunities to acquire scholarships and grants, but are offered student loans in many cases where they may not qualify for enough free funding to meet all of their college expenses.
Again, students who have a bad credit score who may be returning to college later in life or simply starting after they have done damage to their credit, many have options to borrow through federal loans and private loans both, but federal student loans typically do not look at one’s credit history or score when calculating interest. Private student loans are available for bad credit borrowers, but depending upon one’s credit score, a higher interest rate or a cosigner may be required.
However, for traditional students both of these avenues may be an option and, when it comes to choosing the best student loan for a particular student’s situation, research will obviously be necessary as a student’s financial position, credit history, or even opportunities for parental loans from private lenders may offer affordable interest rates that are comparable to federal student loans. Again, both private and federal student loans have been helpful for numerous individuals when it comes to meeting college costs, but exploring these student loan borrowing opportunities will be vital before a borrower will find their best option concerning their situation and financial need.
Yet, financial aid counselors also stress the point that students who are looking for borrowing opportunities should first explore resources from federal, state, local, and private scholarship and grant assistance as these types of assistance will not leave a student with debt after graduation and, in some cases, can meet all of one’s financial need. Also, students who acquire some scholarship or grant assistance could also benefit themselves as this could lower the amount of student loans they must borrow to meet all of their financial needs in school.