Do Bad Credit Student Loans Exist
When I was younger, I absolutely destroyed my credit. I got two student credit cards in my first year of school and it all went downhill from there. My parents hadn't taught me about credit and honestly, my money management in general was just terrible. Since my parents couldn't help me with school, paying for it was always very difficult.
Since I ruined my credit, I had a hard time qualifying for anything. Trust me when I tell you that trying to run your finances with a 450 credit score is a quite interesting challenge. The worst part is getting denied for credit - the embarrassment will get to anyone. I honestly didn't think student loans were even a remote possibility.
School is now over for me and I have started correcting my credit. I actually now have a credit score over 700. Since I'm somewhat interested in going to grad school, I have been looking into student loans. The funny thing is that I now realize that I could have taken out loans all along.
The United States government created Stafford loans to help almost everyone to be able to get an education. Even if your credit is poor, the government will sign for you with the bank. They would definitely come after you if you defaulted on the loan, but the possibility opens up a lot of doors for people with poor credit.
Economically, it makes perfect sense for the government to loan money to students. Even students that have bad credit will increase their lifetime earnings significantly if they graduate from college. The government knows they will get more in taxes if they can get more people to finish school.
In order to qualify for Stafford loans, you have to be a citizen of the United States that is in financial need. In other words, if your parents can easily afford to pay for your college, it will be impossible for you to take out Stafford loans. If you have need, you can be approved quite easily.
Stafford loans are almost always available to people as long as they haven't defaulted on a student loan in the past. Once you have a default, you are required to repay your previous loan before you can take out another.
Student loans would have helped me immensely while I was in college. I wasted tons of times trying to pay for school and in the end, it cost me a few years. Getting loans could have really sped up my process.
Since I ruined my credit, I had a hard time qualifying for anything. Trust me when I tell you that trying to run your finances with a 450 credit score is a quite interesting challenge. The worst part is getting denied for credit - the embarrassment will get to anyone. I honestly didn't think student loans were even a remote possibility.
School is now over for me and I have started correcting my credit. I actually now have a credit score over 700. Since I'm somewhat interested in going to grad school, I have been looking into student loans. The funny thing is that I now realize that I could have taken out loans all along.
The United States government created Stafford loans to help almost everyone to be able to get an education. Even if your credit is poor, the government will sign for you with the bank. They would definitely come after you if you defaulted on the loan, but the possibility opens up a lot of doors for people with poor credit.
Economically, it makes perfect sense for the government to loan money to students. Even students that have bad credit will increase their lifetime earnings significantly if they graduate from college. The government knows they will get more in taxes if they can get more people to finish school.
In order to qualify for Stafford loans, you have to be a citizen of the United States that is in financial need. In other words, if your parents can easily afford to pay for your college, it will be impossible for you to take out Stafford loans. If you have need, you can be approved quite easily.
Stafford loans are almost always available to people as long as they haven't defaulted on a student loan in the past. Once you have a default, you are required to repay your previous loan before you can take out another.
Student loans would have helped me immensely while I was in college. I wasted tons of times trying to pay for school and in the end, it cost me a few years. Getting loans could have really sped up my process.
About the Author:
Dave helps educate people about guaranteed online personal loans and bad credit student loans.
posted by Debt Consolidation Loan at
1:49 AM
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