Sunday, 29 January 2012

Finding the Best Bad Credit Student Loans

By Maria Tosenberg


Today, it's quite common to seek out bad credit student loans. The sad truth is that the economy is awful, with many millions unemployed or underemployed. It's only natural that many of these people look to return to college, or enter the college ranks for the first time, in order to retrain themselves for the tight market place.

The problem, of course, is that the cost of college is insane. Recent analysis shows an 8.3% increase in 2011 alone. That's twice the rate of inflation. Hence the importance of financial aid. Before even inquiring about loans, here's your first advice: look as hard as possible for grants and scholarships, which are dispersed for a truly bewildering range of reasons. Anything you don't have to pay back is better than anything you do.

In a perfect world, lenders would understand that you're going to be just fine, financially speaking, once you begin your in-demand nursing career. They would support you despite that shoddy credit history. Sadly, this is not a perfect world. If you do manage to acquire a loan from a private source, it's likely to be from some offshore institution whose terms would make the Mafia blush.

Your best bet is to find a cosigner. Get someone who does have good credit, who is willing to sponsor you. If you default, that person agrees to bear the burden. This is a serious, even dread relationship to enter into, but it is a way to obtain a private loan.

The Federal Government dispenses student loans, and is a much better source than any private lender. There are three kinds. The first is not, in fact, for people with damaged credit. This would be the PLUS loan, which is nearly as restricted as anything available from a private lender. It demands solid credit, charges steep interest plus a significant origination fee, and can have you making repayments within sixty days.

The Stafford Loan is the primary college loan program of the Federal Government. It's what most people mean when they say "student loan". The Stafford is, first of all, open to any undergraduate or grad student, no matter his or her financial history. It pays up to twenty thousand five hundred dollars per year, with a low fixed rate and a bill that isn't due till after graduation.

The Perkins Loan is quite similar to the Stafford, but its terms are even better. With no origination fee whatsoever and all interest paid by the Federal Government, it is designed to serve students coming from extreme financial distress. According, it might be a good option for you if the times have hit you so hard your credit has gone bad.

Begin by filling in a Free Application for Federal Student Aid ("FAFSA"), available online, and submit it after you send in your college admissions forms. Be sure not to overlook the information available at the site concerning grants, and be sure not to settle for that information. Good luck! The Federal Government truly is your best bet when searching for bad credit student loans.




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