Poor Credit Student Loan
| In today’s world, bad credit does in no way mean the end of the world. Obtaining a student loan is still possible for students with a poor credit history. Both the government and the private lenders offer bad credit student loans so as to cater to the needs of students who want to continue their education. |
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According to the US federal law, there are two types of loans offered by the federal government to bad credit students. These include the Federal Perkins Loan and the Federal Stafford Loan. Both these loan types are made available to students at lower interest rates and can be availed both by graduate and undergraduate students. While the interest rate on Perkins Loans is fixed at 5 percent, the rate is adjusted each year for Stafford loans. The loan amount is dependent on the college in which the student is enrolled and also the number of years of study. Loan eligibility is determined by the school or the college.
One more option for students with bad credit is to apply for various grants and scholarships offered by the federal government. Some of these include the Pell Grant and the Federal Supplemental Education Opportunity Grant. Both these grants are awarded to students depending on the financial requirement and eligibility criteria of the student.
In case, the student is not able to qualify for any of these federally-insured student loans or grants, he/she can approach private lenders anytime to get bad credit student loans. However, the interest rates on these loans are significantly higher in comparison to federal student loans.
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Poor Credit Student Loan