How to Qualify for Student Loans With Bad Credit

Acquiring student loans with bad credit is actually easier than it seems. The majority of the federal funding provided to students in need are offered without any credit checks. This may come as a surprise to some students. However, there are restrictions when applying for credit, so be sure to understand the process when applying for federal loans.

Instructions

How to Qualify for Student Loans With Bad Credit

1

Fill out the FAFSA form. This document (which stands for Free Application for Federal Student Aid) is required for all those seeking federal aid for undergraduate or graduate school. Check the Resources bar for a link to this form. Before you go in to fill out the form, make sure you have the following: social security number and all personal information, your previous year's tax return, the school codes where you hope to apply and your parents' information (if you are underage).

2

Apply for a Stafford Loan. These loans are the most commonly offered by the federal government. Check the resources bar for the application. These loans are provided by the government. The government bankrolls both the principal amount financed (and pays the school) and the interest payments. In subsidized Stafford loans, the government covers the interest that accrues while you are in school--and it never needs to be repaid. In unsubsidized Stafford loans, the interest is held in reserve, and then you must pay after graduation. Stafford loans do not require a credit check.

3

Apply for a Perkins loan. These loans are different from Stafford loans in that they are based primarily on need. Those who qualify for Perkins loans usually have little to no other means for paying for school. See a link in Resources. These loans are often offered, interest-free, in the amounts of $1,000 through $4,000. The information gleaned from the FAFSA will determine your eligibility for these loans. Perkins loans do not require a credit check.

4

Apply for a federal Pell Grant. These funds are again awarded based on need and academic achievement. The only difference is that these grants need not be repaid. The FAFSA and your academic record will determine your eligibility. The application for these grants do not require a credit check.