Are you hoping to someday go to college? Many people in your situation find themselves afraid because of poor credit history. Don't be afraid. There are actually quite a few options for individuals that have bad credit. Getting a college education might be a lot easier than you think.
Perkins loans and Stafford loans are two of the loan options that are available for individuals that have bad credit. There are also grants such as Pell grants that don't consider credit history as part of the approval process.
The most commonly used loans are Federal Stafford loans. There are two different kinds of Federal Stafford loans. There is the subsidized loan and the un-subsidized.
Subsidized Stafford loans are only given to those who are financially needy and therefore qualify for the loan. If you are awarded a subsidized Stafford Loan, the government will take care of the interest accrued on the loan while you attend school and for the first six months after you graduate.
The unsubsidized loan doesn't use financial need as a qualifying factor so it is often available to more students. However, the awards may be smaller so you might have to find more than one source to help supplement the loan. The interest accrued on an unsubsidized is not paid by the government so these loans do accrue interest from the time you take one out.
Perkins loans are also available for students that have bad credit. Perkins loans are harder to qualify for in that you must have more financial need than those who can qualify for Stafford loans. You can qualify for Perkins loans even if you have a bad credit history.
Those that have bad credit can also qualify for federal grants such as Pell grants. These grants are given based on your income, and sometimes be the income of your parents. They vary in size according to the needs of the applicant.
Since Pell grants are a reward from the federal government, they don't need to be paid back. Not everyone can qualify for them, but those that can should definitely get them, even before they take out loans. Credit history is not considered for the grant approval process. - 16459
Perkins loans and Stafford loans are two of the loan options that are available for individuals that have bad credit. There are also grants such as Pell grants that don't consider credit history as part of the approval process.
The most commonly used loans are Federal Stafford loans. There are two different kinds of Federal Stafford loans. There is the subsidized loan and the un-subsidized.
Subsidized Stafford loans are only given to those who are financially needy and therefore qualify for the loan. If you are awarded a subsidized Stafford Loan, the government will take care of the interest accrued on the loan while you attend school and for the first six months after you graduate.
The unsubsidized loan doesn't use financial need as a qualifying factor so it is often available to more students. However, the awards may be smaller so you might have to find more than one source to help supplement the loan. The interest accrued on an unsubsidized is not paid by the government so these loans do accrue interest from the time you take one out.
Perkins loans are also available for students that have bad credit. Perkins loans are harder to qualify for in that you must have more financial need than those who can qualify for Stafford loans. You can qualify for Perkins loans even if you have a bad credit history.
Those that have bad credit can also qualify for federal grants such as Pell grants. These grants are given based on your income, and sometimes be the income of your parents. They vary in size according to the needs of the applicant.
Since Pell grants are a reward from the federal government, they don't need to be paid back. Not everyone can qualify for them, but those that can should definitely get them, even before they take out loans. Credit history is not considered for the grant approval process. - 16459
About the Author:
Dave helps people by teaching them about using private student loans for people with bad credit to fund their college educations. He also helps them to learn about wrong bad credit student loans in general.
