08.13.09 | Bad Credit Student Loans
We are often asked: What loans are available for students with bad credit?”. In short, your options are limited.
We would always recommend you work on building your credit. Visit www.studentplatinum.com to learn more about credit, how to build good credit and how to repair your credit if it goes south.
For some detailed information on Bad Credit Student Loans, visit:
http://www.studentloannetwork.com/resources/bad-credit-student-loans.php
There are three primary student loans available – Stafford, PLUS and private student loans.
Stafford Loans do not require a credit check – so you are good there.
PLUS loans for undergrads are in the parents name. If the parent has bad credit, then ask the lender if you can add a cosigner to the PLUS Loan application. Generally, the PLUS Loan has lower credit criteria so you may be eligible for the PLUS loan even if you have been denied for another type of loan.
Private Student Loans do require good credit – now more than ever. This loan is generally in the students name and a parent will act as a cosigner. If the parent does not have good credit, anyone with a job and good credit can be a cosigner. Regardless of the cosigner, if the student has very poor credit, the chances of approval are very low.
As always, talk with your financial aid office about your options and other sources of financial aid, including scholarships, grants and work study.
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