Pitfalls to Watch For When Seeking Student Loans for Bad Credit

Now suppose: you want to return to school but you have less than stellar credit. Its been a while since you were in school and you are wondering if there are really student loans for bad credit available. The answer is yes, as long as you know where to look.

Student Loans for Bad Credit – Federal Student Loans

Federal student loans are probably the most commonly utilized student loans for bad credit because to obtain them a person’s credit is not an issue at all. Federal student loans are completely needs-based, so as long as you meet the standard income guidelines the fact that you may have bad credit will not affect your ability to get the money you need to pay for college at all.

Some people are under the misguided impression that federal student loans are not available to adult students. That is far from the case. Whatever age you are you can get these kinds of student loans for people with bad credit so that means its never too late to return to school!

To apply for federal students loans (as well as any student grants you may qualify) you only need to complete one application form. That form is known as a FAFSA form and you can find it online at fafsa.edu.gov. Its a fairly simple application but you will need to have already decided which school you want to attend before you submit your FAFSA application as that information is required for it to be processed. Just make sure you choose the education that fits you best.

One word of warning. Taking advantage of the fact that many people, especially those with bad credit, are especially keen to get all the loan help they can there are sites springing up online that offer to “help” students complete their FAFSA form for a fee. And your friend’s college choice may also not be the best for you.

Never pay anything to submit your FAFSA to these companies. If you find you have a difficult time filling out the form ask the admissions office at your chosen school help you get it completed. And watch out for unsolicited advise!

Student Loans with Bad Credit – Private Loans – People often find that the amount of money financed to them through federal loans and grants is still not enough to pay for their college tuition. Student loans for bad credit offered by private companies and lending institutions are a lot harder to obtain though. If you have a cosigner, obtaining a private student loan should not be hard but if you are trying to obtain a student loan for bad credit alone it can be quite a challenge.

Again you need to be wary of scammers when seeking a student loan for people with bad credit. There are companies that will charge you a fee for a list of “approved providers” or will make all kinds of promises about helping you find student loans for bad credit that are never fulfilled. It all about: Just Ask. If you don’t ask, you’ll never know!!

If you are told that you must pay a fee to apply for a private student loan for credit do not and move on to your next option. Reputable banks and lending institutions may turn down your request because your credit is poor but they will never charge you a fee to apply! See also this post: My Favorite Money-Managing Tools.