You are looking for ways to finance your studies but you know that you have a slim chance of having a student loan approved because of your bad credit. What should you do now? Are there other options you can consider to help finance your studies? The answer is yes. Here are some financing options and loans for people with bad credit.
1. Stafford Loan
Any student enrolled in accredited higher education institutions in the US are eligible to apply for a Stafford Loan. This loan has a lower interest rate compared to loans from private lenders, and students are not required to pay while they are still enrolled. In fact, they can defer payment up to 6 months from the time of their graduation. Subsidized Stafford loans are offered to students with great financial need. The government pays for the interest of subsidized loans while the student is still enrolled and under deferment. On the other hand, for unsubsidized Stafford loans, the student pays for the interest, but payment can be deferred while enrolled. Interest that is not paid is added to the principal loan. The requirements for the Stafford Loan are very strict, and there are limits imposed on the amount you can borrow. Stafford loans typically do not cover 100% of tuition and fees, so it is best to supplement it with other financing programs.
2. Direct PLUS Loan
Direct PLUS loan is a federal student aid available to graduate students or undergraduate students with at least half-time enrollment. For undergraduate students, the loan is awarded to the parents instead of the students themselves. This student loan is also available to parents with a dependent undergraduate child who needs financial aid. Aside from financial need, the other requirements for eligibility for PLUS loan include a high school diploma or a General Educational Development certificate, satisfactory performance in academics, enrollment as a regular student in eligible academic programs, and social security number. Male students 18 to 25 years old should register with Selective Service. Direct PLUS loans, as part of the Direct Loan Program, are borrowed directly from the US Department of Education and have a low and fixed interest rate. The loan can lend an amount equivalent to the total Cost of Attendance minus any amount from other financial assistance programs the student is a part of.
3. Online Loans for People with Bad Credit
If your need for financial assistance is urgent, one of your best options is to try your luck in online loans. There are online lending companies that offer loans for people with bad credit programs. These loans require no credit check, so your credit score won’t matter for these loans. However, as a guarantee for lenders that you will be able to pay your loan back, you will need to have a job. Most online lending companies that offer loans for people with bad credit require borrowers to present a proof of income, which can be in the form of payslips and employment certification. Other requirements include: US citizenship, active email and bank account, working phone number and some proofs of identity.
You have plenty of options to get financial assistance for your studies, even if you have a poor credit rating or no credit history at all. So definitely, money should not be a hindrance to achieving your dream career in life.